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1  Other / Beginners & Help / Bitcoin in Business and Form 8300 on: August 15, 2013, 11:33:06 PM
I made a throwaway for this.  Mods, you can migrate this to legal if you want.

I want to start off saying that I run a small car dealership.  I try to be honest, comply with DMV regulations, keep accurate records of all profits made, and pay my taxes.  I do however highly value the privacy of my customers.  I feel bad every time I file a Form 8300 (cash transactions over $10,000).  I believe the BSA is unconstitutional and the government should not be meddling in private business transactions.  My customers are law abiding citizens and nothing makes me believe they have done anything worth reporting.   

Now the 8300 regulations state that any cash (or cash equivalent transaction such as money orders or cashiers checks or foreign currency at the spot price of $10k USD) transactions must be reported.  Any "suspicious" transactions such as the customer deliberately asking how to avoid an 8300 and structuring the transactions must be reported.  I am also not allowed to structure transactions or deliberately fail to file ("Hey pay me an extra $500 and i'll forget to file..." -or- "Pay me $9k today in cash and $5k in check tomorrow...").  I violate these I pay hefty fines and\or spend 5 years in federal prison.  The IRS has run 8300 sting operations on dealers.

The 8300 requirements do not apply to barter however.  If a car is $12,000 and the person gives me $8,000 + trade in I do not have to file.  Extending that idea I could accept 3 chickens, a horse, a boat, and his wife for a car and not have to file if I so wanted to.  Does that extend to BTC?  Is trading in BTC the equivalent of a barter transaction such as being paid in "monopoly money"?  or does the US government view BTC as. a currency?

My goal is not to cheat tax.  I plan to immediately sell the BTC and pay tax on the current market value (just as if I sold a car for 3 chickens and a horse).  My goal is to protect my customers privacy.

Before a customer decides to pay I could give them a paper describing 8300, reporting requirements, barter transactions, and BTC.  I can give this paper to every customer purchasing a car over $10k so that I am not aiding in structuring (I do not want to aid, only inform people of their legal rights).  I will give no further advice or say no more.  It is up to the customer to make an informed decision on how to pay me.
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