Trace Mayers - No Taxes/No Reporting????

[HELP.org]

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[1715691377]

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[kiba]

Check with your tax accountant/lawyer.

[cryptoanarchist]

My reply:

You are saying if someone gives me a $50,000 gift in Bitcoins there is no tax or reporting requirements?

I found this requirement in a few seconds on a Google search:

I.R.C. § 6115 provides that charities (donees) must provide timely written disclosure statements to contributors (donors) who make payments described as “quid pro quo” contributions in excess of $75. See Quid Pro Quo Rules.


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Not sure what you're getting at. "Reporting requirements" suggests paperwork that has to be filed with the IRS. The above statement has to do with providing donors with disclosure statements.

What evidence, then, does the IRS have that I am a charity? If no disclosure is asked for or given, how does the IRS even know?

[Stampbit]

Even non-profits which dont have taxes still have to report. The only way you dont have to report is if you dont have any income to report, like if you're homeless, or google.

[sunnankar]

You are saying if someone gives me a $50,000 gift in Bitcoins there is no tax or reporting requirements?

I found this requirement in a few seconds on a Google search:

I.R.C. § 6115 provides that charities (donees) must

With regards to your question raised in the context of the statement you cited go read 26 USC 2503 and IRS Form 3520.

Since it seems that you seem fairly lazy (spending a few seconds finding a completely irrelevant section of law?) and just vomit whatever comes to mind on the screen without doing the most basic of reading and thus wasting a bunch of people's time and attention; Therefore, I would recommend you go pay a lawyer to explain the following code you cited and I have bolded.

This is really not that difficult if you can just read.

26 USC 6115:

(a) Disclosure requirement
If an organization described in section 170 (c) (other than paragraph (1) thereof) receives a quid pro quo contribution in excess of $75, the organization shall, in connection with the solicitation or receipt of the contribution, provide a written statement which—

From 26 USC 170c:

(c) Charitable contribution defined
For purposes of this section, the term “charitable contribution” means a contribution or gift to or for the use of—
(1) A State, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes.
(2) A corporation, trust, or community chest, fund, or foundation—
(A) created or organized in the United States or in any possession thereof, or under the law of the United States, any State, the District of Columbia, or any possession of the United States;
(B) organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals;
(C) no part of the net earnings of which inures to the benefit of any private shareholder or individual; and
(D) which is not disqualified for tax exemption under section 501 (c)(3) by reason of attempting to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
A contribution or gift by a corporation to a trust, chest, fund, or foundation shall be deductible by reason of this paragraph only if it is to be used within the United States or any of its possessions exclusively for purposes specified in subparagraph (B). Rules similar to the rules of section 501 (j) shall apply for purposes of this paragraph.
(3) A post or organization of war veterans, or an auxiliary unit or society of, or trust or foundation for, any such post or organization—
(A) organized in the United States or any of its possessions, and
(B) no part of the net earnings of which inures to the benefit of any private shareholder or individual.
(4) In the case of a contribution or gift by an individual, a domestic fraternal society, order, or association, operating under the lodge system, but only if such contribution or gift is to be used exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.
(5) A cemetery company owned and operated exclusively for the benefit of its members, or any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that purpose, if such company or corporation is not operated for profit and no part of the net earnings of such company or corporation inures to the benefit of any private shareholder or individual.
For purposes of this section, the term “charitable contribution” also means an amount treated under subsection (g) as paid for the use of an organization described in paragraph (2), (3), or (4).

[franky1]

the only time the IRS/HMRC will tax you is when you convert it back to FIAT.

if anyone else thinks differently that they want 20% of your virtual currency. then most people would be more afraid of spending their world of warcraft gold, or their facebook credits on game items.. after all arnt they also using a virtual currency to barter...

so in short dont worry about losing 20% of bitcoins every time you send them to a friend through the bitcoin clients.. just worry when you want to cash out to fiat. which is not anything new. but the IRS/HMRC just want to make a big deal of it to those that don't know the regulations that have already been in place for years

[Elwar]

Gifts that are exempt from income taxes:

• Gifts that are not more than the annual exclusion for the calendar year ($14,000 per recipient for 2013)
• Gifts to a political organization for its use
• Gifts to charities
• Gifts to one's (US Citizen) spouse

To anyone I give bitcoins to...that is my gift to you.

[Elwar]

Haha.  You better get an accountant.

Why would I need an accountant. I am the one giving away my bitcoins as gifts.

[Elwar]

If you would read the publication instead of picking out certain things that fit your point of view:

http://en.wikipedia.org/wiki/Gift_tax_in_the_United_States
"Non-taxable gifts"

Took less than a minute to find what gifts are not taxable.

[Severian]

You are saying if someone gives me a $50,000 gift in Bitcoins there is no tax or reporting requirements?

You're completely free to do as you see fit with your bitcoins. You can even report them to the IRS if you want. Why someone would want to do such a thing baffles me, but they're your bitcoins.

[Elwar]

Why someone would want to do such a thing baffles me, but they're your bitcoins.

Tirades about how forcing people to do things against their will is good for society in 5...4...3...2...

[Elwar]

You need other information and you have to review the specific citations to understand the exceptions.

Or I just go to wikipedia and find the exceptions.

If the information is incorrect maybe you should edit the page so we can all benefit.

[sunnankar]

If you would read the publication instead of picking out certain things that fit your point of view:

Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

You need other information and you have to review the specific citations to understand the exceptions.

Or I just go to wikipedia and find the exceptions.

If the information is incorrect maybe you should edit the page so we can all benefit.

The information on the Wikipedia page is not incorrect. Milly Bitcoin (HELP.org) just has this incredible inability to read and understand the law.

Even Mr. Wood made a comment on the Forbes article about Mr. Mayer's comments:

Thanks for these comments Mr. Mayer, which make sense. You are clearly more knowledgeable about Bitcoin than I am.

[noedaRDH]

What I would like to know is, if so and so country were to tax your Bitcoins, then how would they determine how much to tax? If I were to exchange one Bitcoin right now for some fiat, what's the tax on that exchange in dollar value? I'm asking because the price changes rapidly every few hours.

[Severian]

screwball Bitcoin schemes and lose your money, or, in this case, face prosecution for tax evasion.

Do you have more faith in P2P money and consent or do you have more faith in the IRS and its brand of theft and violence?

[Severian]

That is some kind of weird false choice that makes no sense. 

Bitcoin was created to bypass the force and fraud of government. If you're using Bitcoin, it's obviously not a weird false choice that makes no sense.

[bittenbob]

When people say "Bitcoin was created for ..." that is religion and people who say that usually have some sort of agenda akin to a religious belief.  Bitcoin can be used for whatever you want to use it for.  If you want to use it as tool to bypass governments then you can do that (there is not just one "government").  If you want to use it to sell your 99 cent product and avoid the credit card fees you can do that.  If you want to invest you can do that.  If you want to avoid banks you can do that.  And on and on.  Users can use Bitcoin and still comply with regulations if they want.  Bitcoin just gives more choices.

Well said.

[cryptoanarchist]

When people say "Bitcoin was created for ..." that is religion and people who say that usually have some sort of agenda akin to a religious belief.  Bitcoin can be used for whatever you want to use it for.  If you want to use it as tool to bypass governments then you can do that (there is not just one "government").  If you want to use it to sell your 99 cent product and avoid the credit card fees you can do that.  If you want to invest you can do that.  If you want to avoid banks you can do that.  And on and on.  Users can use Bitcoin and still comply with regulations if they want.  Bitcoin just gives more choices.

Well said.

NOT.

Bitcoin WAS created for a purpose - that's not a "belief", but outright fact. Satoshi adding the comment about a bank bailout in the first transaction wasn't just a coincidence.

[gmaxwell]

Yes, and the explicit and stated purpose was to build an ecurrency based on cryptographic proof which does not require is all the trust that conventional currencies require.

[Severian]

Users can use Bitcoin and still comply with regulations if they want.  Bitcoin just gives more choices.

 The fact still remains that the intent of Bitcoin's creator was to create  P2P cash that was free from government constraint. As I said earlier, you're more than free to show the government your bitcoin collection.