Bitcoin Forum

Why does the IRS want bitcoins and what is it that they plan to do with all of these bitcoins?

I can understand taxing someone who converts BTC to USD. But why should BTC that remains BTC also be taxed?

???

They don't want your bitcoins, they want their USD back (taxes) from your bitcoin gain. Why tax bitcoin gain --- They need all the money they can get and will tax you to your death

As far as I am aware you only owe taxes once you produce a gain in USD fiat conversion from btc.

Who said IRS wants Bitcoin? What's your source?

they just want money, money that come from bitcoin taxes, not bitcoin itself

It practilcally doesn't matter what it is, they just want you to pay tax.

They will chase you as long as needed to squeeze every buck out of your pocket.

I don't think BTC that remains BTC gets taxed. Of course, when you use BTC (which has appreciated in value) to buy something, a taxable event occurs. It is equivalent to you converting your BTC to USD and then using that USD to buy something. If you have capital gains which are realized, you are liable to pay tax. No escaping that!  :)

Why do you think they want bitcoins? Source?

The OP is talking about taxes on bitcoins.

I don't think the IRS want bitcoin, just tax it in terms of usd for fiscal spending. They wouldn't lose any possible channel of taxation to balanc its deficit.

Same reason they always do: they want your hard-earned money to launder to their buddies via various schemes.

IRS doesn't want bitcoins they want your money. If people can pay things with it, they'll tax it.

anything that makes a profit in USD they will always want their cut.

I know many people who sold btc as it has risen and then fallen and not one of them are paying any taxes.
I think this is only a worry for people who move thousands of btc.

The IRS does not want bitcoins and has no way to even receive them. They will however want the capitol gains tax on the appreciation in value when you sell or spend them.  It's just like a gold coin. Let's say you buy a gold coin for $500 and the price goes up. Later you sell that coin for $1000. In that case you owe a percentage of the gain in value. The percent varies, it could be 0% or 15%, depending on your tax bracket.

If you earn money in bitcoin and do not convert such bitcoin to fiat you will owe income taxes on this income based on then current exchange rates, however they will not accept bitcoin as payment, you will need to either convert a portion of your bitcoin to fiat or use existing fiat to pay for your taxes

but if they want your usd when you convert bitcoin in usd, than yes, they basically want your bitcoin

bitcoin should be tax free

bitcoin is tax free. The only time you need to pay any kind of taxes when dealing with bitcoin is when you have some kind of income or realize some kind of gain.....this is the same amount of tax regardless of the payment method used in the transaction

They want everything you have of value.

true.

https://www.youtube.com/watch?feature=player_detailpage&v=tGk5ioEXlIM#t=1366

To me it's simple: the IRS want taxation on Bitcoin the same way as they want taxes on everything else. So that they can use your money to try and prop up their failing economy and squander the money on every other ill-advised government expenditure that they've been doing for years: lucrative salaries for bankers and government officials, overspending on military projects that have spiralling costs. The military industrial complex etc etc etc.

If taxation was being used correctly (and collected correctly from vast corporations who dodge it) I don't think people would mind paying their taxes.

The fact that they want tax off bitcoin & call it non tangible property is bullishhh :-*

Couldnt agree more, but unfortunately it will never happen.
Politrix as usual in Washington, it will never change.