Teresa is going to get a visit from the IRS

[the founder]

It's 364 days until most Americans will once again face a deadline to file their taxes, but Teresa Warmke already has a plan for Tax Day 2014: She's going to skip the whole thing.

The treasurer of a limited liability company, Warmke has struck on what she celebrates as a novel way to avoid any audit trail -- and thereby any liabilities to Uncle Sam. Goodbye American dollar, hello bitcoin.

“We don’t intend to file tax paperwork any more,” Warmke told The Huffington Post Monday, as many others scrambled to fill out tax forms or stood in long lines at the post office. “We’re not going to do business with the government from now on.”

http://www.huffingtonpost.com/2013/04/16/bitcoin-taxes_n_3093182.html

Founders Note:
I believe Teresa is going to get a visit from the IRS having her name in lights doing crap like that.

[BTC Books]

Ain't no accounting for stupid...

[SgtSpike]

It'll force the IRS to issue some more detailed tax regulation on Bitcoin though.  In my mind, that's a good thing, as it'll lend additional credibility to Bitcoin.

[BTC Books]

It'll force the IRS to issue some more detailed tax regulation on Bitcoin though.  In my mind, that's a good thing, as it'll lend additional credibility to Bitcoin.

Yes.  Absolutely.

[koin]

I believe Teresa is going to get a visit from the IRS having her name in lights doing crap like that.

poking the bear, i believe is the term that applies.

this is where proper security comes into play.  mixing your coins (or "shared" send / receive on blockchain.info/wallet) is crucial.  but even that won't help if your electronics lead to determining transactions, like invoices in e-mail even when paid for with bitcoins, phone calls to donors who paid using bitcoins, etc.

things like using only an encrypted filesytem and session locking are requirements otherwise someone gaining physical access to the hardware would give up the forensic clues to know which addresses had been used.

[BTC Books]

I believe Teresa is going to get a visit from the IRS having her name in lights doing crap like that.

poking the bear, i believe is the term that applies.

this is where proper security comes into play.  mixing your coins (or "shared" send / receive on blockchain.info/wallet) is crucial.  but even that won't help if your electronics lead to determining transactions, like invoices in e-mail even when paid for with bitcoins, phone calls to donors who paid using bitcoins, etc.

things like using only an encrypted filesytem and session locking are requirements otherwise someone gaining physical access to the hardware would give up the forensic clues to know which addresses had been used.

Throwaway domains...

http://qubes-os.org/Home.html

[the founder]

Guys, Girls,   

Encrypting file systems, throw away domains, etc.. this is not the right thing to do... it will only paint anyone that uses bitcoins as a SilkRoad using, Tax Evading drug runner...

The best solution is to pay your taxes.

[SgtSpike]

Guys, Girls,   

Encrypting file systems, throw away domains, etc.. this is not the right thing to do... it will only paint anyone that uses bitcoins as a SilkRoad using, Tax Evading drug runner...

The best solution is to pay your taxes.

+1

[BTC Books]

Guys, Girls,   

Encrypting file systems, throw away domains, etc.. this is not the right thing to do... it will only paint anyone that uses bitcoins as a SilkRoad using, Tax Evading drug runner...

The best solution is to pay your taxes.

Absolutely pay your taxes.  Last year I paid 20% long term capital gains on the few thousand I cashed out (needed a car).  Haven't heard back on that - so in the absence of feedback I'm figuring it was OK.

This year I'm not planning on any cashouts to declare.

But just because you pay your taxes doesn't mean that any unrealized holdings are anybody else's business, including the IRS.  And I'm generally very privacy oriented - especially where my computer is concerned.

[bb113]

http://www.fr33aid.com/1163/fr33-aid-abandons-irs-application-qa/


Its not personal income taxes, just for the non profit.

[cho]

I wonder how much (deluded) people embrace bitcoins as a tax evasion medium

[bb113]

I wonder how much (deluded) people embrace bitcoins as a tax evasion medium

I'm not sure this is tax evasion.

[Severian]

The best solution is to pay your taxes.

No. Only pay them if forced to. The approach taken by fr33 is the correct one.

[chronocoin]

It's 364 days until most Americans will once again face a deadline to file their taxes, but Teresa Warmke already has a plan for Tax Day 2014: She's going to skip the whole thing.

The treasurer of a limited liability company, Warmke has struck on what she celebrates as a novel way to avoid any audit trail -- and thereby any liabilities to Uncle Sam. Goodbye American dollar, hello bitcoin.

“We don’t intend to file tax paperwork any more,” Warmke told The Huffington Post Monday, as many others scrambled to fill out tax forms or stood in long lines at the post office. “We’re not going to do business with the government from now on.”

http://www.huffingtonpost.com/2013/04/16/bitcoin-taxes_n_3093182.html

Founders Note:
I believe Teresa is going to get a visit from the IRS having her name in lights doing crap like that.

Maybe she's betting that by the time she's audited, her profits will be greater than penalties? 

[Rothgar]

It's 364 days until most Americans will once again face a deadline to file their taxes, but Teresa Warmke already has a plan for Tax Day 2014: She's going to skip the whole thing.

The treasurer of a limited liability company, Warmke has struck on what she celebrates as a novel way to avoid any audit trail -- and thereby any liabilities to Uncle Sam. Goodbye American dollar, hello bitcoin.

“We don’t intend to file tax paperwork any more,” Warmke told The Huffington Post Monday, as many others scrambled to fill out tax forms or stood in long lines at the post office. “We’re not going to do business with the government from now on.”

http://www.huffingtonpost.com/2013/04/16/bitcoin-taxes_n_3093182.html

Founders Note:
I believe Teresa is going to get a visit from the IRS having her name in lights doing crap like that.

Maybe she's betting that by the time she's audited, her profits will be greater than penalties? 

There are no profits.  It's an organization that provides free healthcare.

[the founder]

Screwing with the IRS is akin to taking a gun to your head.    They have zero problem tossing you in jail for not reporting profits made from bitcoin.  

It just takes a phone call to Mt.Gox from some random IRS agent to get all reports of what you bought or sold there (or any other exchange for that matter).   I don't give a shit if Mt.Gox is in Japan....  because that same IRS agent would call their counterpart in Tokyo and then the Japanese version of the IRS would do it.

[Severian]

Screwing with the IRS is akin to taking a gun to your head.   

The IRS doesn't recognize Bitcoin as money. Yet.

[the founder]

The IRS doesn't recognize Bitcoin as money. Yet.

Where have you been for the past 2 months?

They view it as a foreign currency,  which means they DO view it as money.

   

On July 21, 2011, FinCEN published a Final Rule amending definitions and other regulations relating to money services businesses ("MSBs").4 Among other things, the MSB Rule amends the definitions of dealers in foreign exchange (formerly referred to as "currency dealers and exchangers") and money transmitters. On July 29, 2011, FinCEN published a Final Rule on Definitions and Other Regulations Relating to Prepaid Access (the "Prepaid Access Rule").5 This guidance explains the regulatory treatment under these definitions of persons engaged in virtual currency transactions.

http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001.html

[headygains]

The IRS is a private organization not actually part of the U.S. Government... It's a corporation just like any other designed to make money, to bad most of the money made is actually going back to U.S. taxpayers. (Here lies the problem with America as a whole) America is a business.

The problem as I see it is everyone is caught up with the almighty dollar, shouldn't it really be about the advancement of Humans as a species?
When Money gets in the way of groundbreaking research because it's to costly then there really is an issue.

[Severian]

They view it as a foreign currency,  which means they DO view it as money.

No, they view it as a currency substitute. That's not "money" in their eyes anymore than a warehouse would be considered "money". They might still claim regulatory power over it but they still don't see it as money.

 

FinCEN's regulations define currency (also referred to as "real" currency) as "the coin and paper money of the United States or of any other country that is designated as legal tender and that [ii] circulates and [iii] is customarily used and accepted as a medium of exchange in the country of issuance."3 In contrast to real currency, "virtual" currency is a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency. In particular, virtual currency does not have legal tender status in any jurisdiction. This guidance addresses "convertible" virtual currency. This type of virtual currency either has an equivalent value in real currency, or acts as a substitute for real currency.