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I wonder how one would go about taxing bitcoin transactions at all if there is no record that can be tied with certainty to a person. You probably get the same
by jiggy2011 14y ago
I wonder how one would go about taxing bitcoin transactions at all if there is no record that can be tied with certainty to a person.
You probably get the same thing you do with the cash economy where people just make up the lowest figure that sounds vaguely plausible.
- ceejayoz 14y agoThis already happens with cash tips in the service industries.
- gamblor956 14y agoThe same way they tax transactions in foreign currencies: you self-report taxes. If you don't report all your taxes, and you get caught, then you pay all of those taxes, plus interest (above market-rate interest), plus penalties, and they send you on an all-expenses paid vacation to a federal detention center for a few months or years. Also, substantially failing to report your income effectively means that your tax year never closes, which means that the IRS has effectively until the end of time to pursue you for unreported income. (Whereas normally there is a 3-6 year statute of limitations for the IRS to audit you.)
- jiggy2011 14y agoThe question is, how do you audit somebody? It's easy enough when they have bank accounts that you can look at. With bitcoin it is like having your money spread across thousands of anonymous bank accounts which are opened by secret handshake.