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I don't see how this law could be enforceable. Hiding bitcoins from the IRS seems to be trivial and lying about the real acquisition value as well. This is very

I don't see how this law could be enforceable. Hiding bitcoins from the IRS seems to be trivial and lying about the real acquisition value as well. This is very different from stocks where all trades are overseen by the SEC. You can't just go to a neighbor's house and pay for stock in cash without telling anybody else.

ry0ohki 13y ago
The same way cash transactions are trackable, which is to say they are not. In either event you can choose to evade the taxes but it's probably not a wise bet.
- thatthatis 13y ago
  They aren't trackable, but when you pay cash for a $90,000 car and a $350,000 boat the fact that you've clearly under reported something is observable and to my knowledge sufficient information to prosecute for tax evasion.
  - ry0ohki 13y ago
    How would that be any different then if you paid Bitcoins for a car or a boat? Once you convert it into something tangible it's easier for the IRS to figure out.
deleted 13y ago
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sosborn 13y ago
> all trades are overseen by the SEC Longterm goal?
anigbrowl 13y ago
Well, the blockchain records all transactions, and when they took place: http://blockr.io/ http://blockr.io/ So if the IRS is auditing you, then it would be easy for them to cross-reference to that.
- Zarathust 13y ago
  But until I tie a wallet address with the physical world (like credit card or such), then they have no way of knowing that I own those coins. Also it will not be possible to determine from the blockchain only which amount of USD was paid for the said bitcoins, only that the transaction was on a particular day and that the bitcoins where worth, on average, a certain amount on that day. Furthermore, btc exchanges are not regulated and many are on foreign soil (out of reach by the IRS) so this average is mostly bollocks
  - rodgerd 13y ago
    This might play out for you. Or it might take to you to the same place it took Wesley Snipes.
danielweber 13y ago
Your counter-party could decide the IRS bounty is worth turning you in.
gamblor956 13y ago
If you severely underreport your income, the period of time for which the IRS can go after you never ends. That means, theoretically, they could go after you when you're 90 for income you didn't report in 2013/2014.
URSpider94 13y ago
A lot of people used to think this about Swiss bank accounts, until the US government compelled them to hand over their account records. Now a lot of Americans are on the hook for years of back taxes, and potentially for criminal tax fraud...

ry0ohki 13y ago

The same way cash transactions are trackable, which is to say they are not. In either event you can choose to evade the taxes but it's probably not a wise bet.

thatthatis 13y ago
They aren't trackable, but when you pay cash for a $90,000 car and a $350,000 boat the fact that you've clearly under reported something is observable and to my knowledge sufficient information to prosecute for tax evasion.
- ry0ohki 13y ago
  How would that be any different then if you paid Bitcoins for a car or a boat? Once you convert it into something tangible it's easier for the IRS to figure out.

deleted 13y ago

[deleted]

sosborn 13y ago

> all trades are overseen by the SEC Longterm goal?

anigbrowl 13y ago

Well, the blockchain records all transactions, and when they took place: http://blockr.io/ http://blockr.io/ So if the IRS is auditing you, then it would be easy for them to cross-reference to that.

Zarathust 13y ago
But until I tie a wallet address with the physical world (like credit card or such), then they have no way of knowing that I own those coins. Also it will not be possible to determine from the blockchain only which amount of USD was paid for the said bitcoins, only that the transaction was on a particular day and that the bitcoins where worth, on average, a certain amount on that day. Furthermore, btc exchanges are not regulated and many are on foreign soil (out of reach by the IRS) so this average is mostly bollocks
- rodgerd 13y ago
  This might play out for you. Or it might take to you to the same place it took Wesley Snipes.

danielweber 13y ago

Your counter-party could decide the IRS bounty is worth turning you in.

gamblor956 13y ago

If you severely underreport your income, the period of time for which the IRS can go after you never ends. That means, theoretically, they could go after you when you're 90 for income you didn't report in 2013/2014.

URSpider94 13y ago

A lot of people used to think this about Swiss bank accounts, until the US government compelled them to hand over their account records. Now a lot of Americans are on the hook for years of back taxes, and potentially for criminal tax fraud...