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""On your 1099 please list all Bitcoin address you've sent or received money from". Right." Yeah, here is what would happen if you were caught cheating: "Hi M

""On your 1099 please list all Bitcoin address you've sent or received money from". Right." Yeah, here is what would happen if you were caught cheating: "Hi Mr. Auditor. I have nothing to do with Bitcoin, honest!" "Oh, well, what did you use 10kW of power every month for the past yeah?" "Oh, see, I was actually trying to make a cold fusion reactor!" "Show me." "No, I blew it up by accident." "Oh, well, funny how there is no crater..." Seriously, do you think the IRS does not know how to catch people who cheat on their taxes?

joejohnson 13y ago
There is no strong correlation between power consumption and the number of bitcoins you've mined. What's to stop me from hoarding hundreds of bitcoins but claiming I've only slush-mined 0.5 BTC?
- betterunix 13y ago
  Nothing, but then you face the same problem that the mafia has: how do you spend all that hidden money without getting caught? Yes, you can get away with small things -- groceries, bullets, etc. -- but once you buy something big (a car, a boat, a house, a fancy rifle) you're going to have a hard time hiding the transaction.
  - lettergram 13y ago
    Unless of course you claim you made enough BitCoins to buy a house that year, but perhaps not so many as to furnish it (even though you did) Still avoided $20,000 in taxes and pretty much impossible to get caught unless you invite the IRS to your home.
    - betterunix 13y ago
      ...or if the IRS conducts an audit and just shows up, wondering why someone would buy a home, list it as their address, but not bother furnishing it.