Excellent analogy.

Treat it like you are selling something at a yard sale/Craigslist ad.

If it's a few bucks, no one cares. If you have substantial income from it, pay income tax on it.

The bank will react the same way it would from a yard sale/Craiglist ad. If you go dump in $20k they will care, if you put in $20 they won't. They probably have a set amount that makes them declare it to whatever your IRS entity is there. If you deposit money regularly under the limit but substantial, with intervals that look similar, they'll notice.

Careful because you can get ripped off, just read this forum, it happens. When you get ripped off the police can do exactly nothing for you that's positive; they might press charges assuming you were up to something bad. Consider an escrow service.

He won't have to really claim income until it is converted to fiat. The problems are with sales tax, if applicable. The person selling gold received fiat immediately, and there would be sales tax.

Just calculate for income tax. Claim what you made into their fiat.

See, good thing you didn't go zerk.

You know nothing about them. Do you really want to gamble with the police associating you with them? WHO KNOWS what other activity they are into, and you have no way to prove that they own a bitcoin wallet.

You think $10k is a lot? What do you think the fines/time are on money laundering, supporting drugs/terrorists, etc ?

Pay them but...

What we really need is some tax relief among the average people, by making corporate tax evaders pay.

Don't.

If you don't have to declare your bank balance, you don't have to declare Bitcoin. They are not on your person anymore than your bank account that you might have your number to. I'm not saying if you get caught with a private address that's just written down that someone might get their panties in a bind but... It makes zero sense. There is no reason to comply so long as you don't have a blatant private key written down.

Hey guy!

I need some artwork for my crypto website. It's an advocacy website that isn't pretty enough without some artwork to start sharing .

What I want is a map of the world that's just a "shadow" and where major cities are like stars, because I want a Nebula cloud over the top of the the whole map. Alternatively I'd be happier with nodes and miners from all different cryptos being the stars. There's some room for interpretation of whatever will look really cool. The vibe certainly needs to fit a somewhat chic-ly clean website.

It needs to be wide-screen-ish format. It's a "banner" for all the pages, but until you scroll past it, it takes up about 2/3-ish of the screen. No need to embellish width with the image, white bars on the side would work well with the site format for any filler beyond a correct world map ratio. (I can trim them in gimp as needed).

Whomever submits the best I will give 1 LTC to. They are welcome to donate that LTC back to me doing advocacy work and keeping a website up. If no one submits anything good looking at all there won't be an award and I'll seek other art efforts. (you won't see me using one temporarily). The contest will run till Wednesday the 9th. (Ya, I need to get this done!)

Well, have at it, get paid a little in crypto.

I would do nothing.

If you convert to fiat pay income tax. Yes it's more than capitol gains but... it works out better for cryptos this way to not encourage the government trying to fiddle with something they have no purview with.

For all intensive purposes BTC and BCC are another "state" outside of the USA (and all countries), so long as they cannot provide basic services for them. And the reality is they can't ever really do that until they have a majority of miners. That or the government needs to have huge reserves of BTC/BCC to compensate lawfully judged court cases and claims. Yup, they can't do any of that. There is a reason none of this has seen any real challenge in court. At some point the USA may decide the value in aggressively seeking to steal capitol from cryptos with unlawful actions, or expecting to prosper from the economic gains by allowing them to flourish... This is where everyone needs to be politically active and aware.

I'm not saying I know for sure how the IRS will come down on all of it, it's not as if the government has never done any wrong.

Frankly it's literally impossible to audit all the crypto movement. For the same reason regular stock trading has "wash" rules where so long as everything stays in the exchange then it doesn't fiddle with capitol gain/loss concerns. However that is easily tracked because despite the high volume, individuals are not making a gazillion trades 24/7 like with cryptos. Plus regular stocks cannot be infinitely divided. Sadly there is "wash" law for cryptos. At best they can exist in a gray area of no-enforcement (unless CoinBase starts handing over profiles). They need to tax businesses in the USA like CoinBase, as they operate within the purview of the state fully.

A day may come where you actually need to do something. As is they can track it all, if so inclined. But that doesn't mean they want to, the returns they are looking at are not pretty by going crazy on everyone.

Call them and ask them what they are going to do with your balance?

My guess is you get a check in the mail in a month. But... hard to say.

Suing before confirming that they have no intentions to return your balance is a bad idea. It makes you look funny, when they are "processing" your balance for return.

That's my guess.

Wow. You should have used an escrow service

I doubt the police would do anything except maybe try to fine/charge you. They probably won't find the other guys. They will probably assume money laundering/tax evasion/drugs/etc.

You could prove the BTC wallet is yours so long as you have the transaction saved, but it could still get really ugly.

While I'm not an EU citizen, my opinion... suck it up and live with it. But also I let others know your story. Find a 3rd party escrow service you can recommend/use.

Then it's illegal until the IRS accepts bitcoin, if you otherwise would have to do any in state tax.

Anyone around? 

Ah, yes, use the form! It's that simple.

Yes, just report your income and pay tax on it. I am pretty sure they don't have any tariff on it... furthermore it isn't your responsibility to incur any EU tax etc. All of that is for him to do, just like if you shipped him a product.

And to think people want more regulation... 

They certainly should have been shut down. But the fact that all the little people were hurt by it is the worst. That's why peer regulation is better. You can be damn sure if White-Hat hackers took over BTC-E it would have been dealt with differently, as an example.

A state patrol man once told me people on bicycles shouldn't ride drunk because they might cause someone to hit them and kill them, so they'd have to live with that. But how many dead people care about those that killed them and their emotions, no matter who was at fault?

To me it seems like it hardly matters if a person on a bike has been drinking. Cars hit them anyways. (Sadly, I'm actually very pro bicycle and walking)

Have they defined anything yet? They're more tied to other markets so I wouldn't be surprised if the answer is more similar to the USA.

I think the question is if the ICO is a security or not.

I doubt it. It's no more interesting to them than buying from a 3rd party person on Amazon I imagine.