Could cryptocurrency holders be attacked by IRS?

[European Central Bank]

i went into crypto with the expectation of paying taxes if there was a huge profit. same as anything else. anyone who thinks it's a miracle tax free product is an asshole who deserves everything they get.

[1715408025]

1715408025

[ethersphere]

It's definitely much easier to evade taxes and fake profit streams using cryptos though. I doubt its easy to trace where the money came from unless you sell and withdraw it all in one go from one bank account.

[vapourminer]

If you earn BTC or any other altcoin because of work, mining, speculation on exchanges, etc you have to declare it as any other income.
If you don't do that sooner or later you may get caught, simple.

this.

just pay your taxes when you exchange to fiat (assuming you profit, not lose) and relax.

ps im in the usa, other countries may differ.

[Qartersa]

I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?

Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?

I think it is possible for Bitcoin holders or investors to be investigated and even attacked by the IRS especially if there is a leakage in the system. The government has all in its power to regulate all those who earn money, even those done online. All the government has to do is to create online measures to effectively regulate online business transactions. This move may cost much to the government but it will definitely help ensure correct collection and/or remittance of tax. 

[LilibethSantos]

If you want to be completely safe, don't ever involve bitcoin transactions with your real name or finances. Purchasing bitcoin with your credit card, Paypal, or bank account is just asking for red flags in the future.

[Amph]

If you want to be completely safe, don't ever involve bitcoin transactions with your real name or finances. Purchasing bitcoin with your credit card, Paypal, or bank account is just asking for red flags in the future.

i was asking myself lately about what they do when someone pay in bitcoin to buy something from another country, can they track something like that?

i'm fairly certain that the owner of that online shop, don't need to claim anything to the other country even if he sell item to people outside of his country...but i'm not sure

i think some traces are left behind in this case, and paying directly in bitcoin may not be all that safe from being taced back

[morpheus305]

If you are holding the cryptocurrency in any kind ,but you are not withdrawing it, or converting the crypto to fiat, then you are safe.
You cannot pay the tax from something that you haven't sold, but you just own.

Isn't that actually false? Don't you have to pay capital gains even on crypto to crypto gains?

[savushkinTA]

In March of 2014, the agency issued an "IRS Virtual Currency Guidance" detailing the tax requirements for cryptocurrencies.

[TagaMungkahi]

If you are holding the cryptocurrency in any kind ,but you are not withdrawing it, or converting the crypto to fiat, then you are safe.
You cannot pay the tax from something that you haven't sold, but you just own.

Isn't that actually false? Don't you have to pay capital gains even on crypto to crypto gains?

The basis of capital gains is the money that You converted cryptocurrency into fiat which the Government has the right to geberate tax from it. Government doesn't have any right about cryptocurrency thing unless you convert it to fiat.