O ye of little faith; Same. Once again, I'm not sure how anything like this gets instituted without first repealing the Citizens United SCOTUS ruling. And now, ain't nobody got time for that because we've got wayyyyy bigger problems. I'm wary of over-regulation, but I did like the proposed increase in IRS oversight of bank accounts designed to catch tax evaders. Beefing up the IRS to focus on tax evasion probably pays for itself. Interestingly, the demonization of taxes is one of the longest-running coherent ideologies in the GOP. Since Reagan, right? Super patriotic. "I love this country so much that I refuse to fund its government". +anotha 1 for "The party of no internal thought".
I am not a fan of the all-seeing IRS. $600 annual flows is everything, and even the revised $10k total annual flows is not targeting significant tax-evasion. Banks already have a significant KYC burden. They have to report all transactions that are $10k or more or any suspicious series of transactions of ANY amount. This is going to make banking cost more, and people with less money will pay a larger share. When the IRS audits poor or middle class people, it is a nightmare, and the onus is on them to get the IRS off their back. When rich people are audited, they have people work on it for them. I am willing to bet that this IRS proposal is the result of some machine-learning reconcilliation software contract designed to give the US government total financial awareness. We are fast-approaching a government that knows everything we do. I pay my taxes. Taxes are necessary. If the politicians gave a shit they would destroy Turbotax by letting most Americans file automatically.
sigh I've fought this battle like three different places on the Internet. Nobody read the notice A-1: For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. "We're going to tax crypto, you knew we would, we knew we would, get over it." a transaction results in foreign currency gain or loss under U.S. federal tax laws? A-2: No. Under currently applicable law, virtual currency is not treated as currency that could generate foreign currency gain or loss for U.S. federal tax purposes. "It's a domestic tax issue, which beats tar out of a foreign tax issue, chillax." services include in computing gross income the fair market value of the virtual currency? A-3: Yes. A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, 3 measured in U.S. dollars, as of the date that the virtual currency was received. See Publication 525, Taxable and Nontaxable Income, for more information on miscellaneous income from exchanges involving property or services. "It's part of the economy, get used to it." services in Q&A-3? A-4: The basis of virtual currency that a taxpayer receives as payment for goods or services in Q&A-3 is the fair market value of the virtual currency in U.S. dollars as of the date of receipt. See Publication 551, Basis of Assets, for more information on the computation of basis when property is received for goods or services. "We're taxing it based on what it was worth at the time, just like if it was money." A-5: For U.S. tax purposes, transactions using virtual currency must be reported in U.S. dollars. Therefore, taxpayers will be required to determine the fair market value of virtual currency in U.S. dollars as of the date of payment or receipt. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the fair market value of the virtual currency is determined by converting the virtual currency into U.S. dollars (or into another real currency which in turn can be converted into U.S. dollars) at the exchange rate, in a reasonable manner that is consistently applied. "You sort it out what it's worth. Prolly don't cheat because we can look at historical records, too." Yadda yadda yadda the important thing here that nobody talks about is that staking income is income, to pay taxes on, at the time it is earned. That has implications for me but I can't say I'm surprised. BUT HERE'S WHERE EVERYONE LOSES THEIR SHIT A-12: A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. For example, a person who in the course of a trade or business makes a payment of fixed and determinable income using virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable year is required to report the payment to the IRS and to the payee. Examples of payments of fixed and determinable income include rent, salaries, wages, premiums, annuities, and compensation. "You can't get around W2 wage reporting requirements AND YOU SERIOUSLY CAN'T BE SURPRISED BY THIS." What everyone should be paying attention to is their position on wallets. Yes. The proposed rule requiring financial institutions to report on cryptocurrency transactions that are more than $10,000 is similar to existing CTR rules that require the reporting of cash withdraws over $10,000. Yes. The proposed rule is similar to existing rules that establish recordkeeping requirements for wire transfers over $3,000. There's another letter that I can't find right now from June where the Treasury specifically cuts out wallet-to-wallet transactions from reporting requirements. As in, specifically says that there will never be reporting requirements on them. They just want their taxes. And they want to make it so you can't evade current tax law with a new mechanism. That's all this is.Q-1: How is virtual currency treated for federal tax purposes?
Q-2: Is virtual currency treated as currency for purposes of determining whether
Q-3: Must a taxpayer who receives virtual currency as payment for goods or
Q-4: What is the basis of virtual currency received as payment for goods or
Q-5: How is the fair market value of virtual currency determined?
Q-12: Is a payment made using virtual currency subject to information reporting?
Are the proposed reporting rules similar to the rules for transactions in currency?
Are the proposed recordkeeping rules similar to those for bank wire transfers?