Bitcoin anonymity broken. You have to pay tax

[priyankg3]

its totally about short term capital gain and long term capital gain

[MoonJeina]

The IRS has broken Bitcoin anonymity.

Apart from the obvious impact on criminals, this also means that all Bitcoin investors will be forced to pay taxes of their earnings. And be fined for past Bitcoin earnings they have not reported.

https://www.technocracy.news/index.php/2017/08/28/bitcoin-loses-anonymity-irs-tracks-bitcoiners-new-blockchain-analysis-tools/

That is bit upsetting if we don't look at the broader perspective . Anonymity is the "prominent"  attribute of Bitcoin . The very definition of bitcoin is leaving no trace of the transactions . By this step of IRS , bitcoin could loose its inventiveness . People go for bitcoin because they want easy bucks with no taxes .
But if we look at the scenario from the perspective of IRS , this might turn out to be a very beneficial step for the world's development and economy .
There would be track of all the criminal activities going on in context to "dark web " . Moreover , this would also not let the rich investors play their filthy tricks in order to get a huge profit . But , i hope for different earnings of bitcoin they have a different tax system . One must not be in a facing a heavy financial retardation because of the heavy taxes imposed .

[Shamie1002]

I also don't agree in putting taxes on bitcoin. What seems to be the problem, bitcoin is alternative to banking. I think banks will not disappear even if bitcoins exists. Fees are enough to settle it with but taxes are too much. People still pay taxes because of regular jobs. Or if people decided to make a business out of their profits then taxes are necessary. I don't think taxes for bitcoins is needed because sooner it will be in the system too.

[Uao]

OP: I suggest you look into becoming a citizen of Liberland, the first ever nation on the blockchain as Ivan put it. Taxes are optional in Liberland.

Liberland: https://liberland.org/en/about

Ivan on Tech video interview with Liberland's president: https://www.youtube.com/watch?v=DgDeyhW7zjc

[ImHash]

OP: I suggest you look into becoming a citizen of Liberland, the first ever nation on the blockchain as Ivan put it. Taxes are optional in Liberland.

Liberland: https://liberland.org/en/about

Ivan on Tech video interview with Liberland's president: https://www.youtube.com/watch?v=DgDeyhW7zjc

You are a genius If paying tax is optional in Liberland, We might as well decide not to pay any tax ever. Ho would you run a country with people in it if you don't have enough money for maintaining public services? People are paying their taxes as usual, Cryptocurrencies are not costing governments any thing extra. If you are not using services such as Coinbase, Your government will never know that you have any bitcoins.

[Skieleton]

This was to be expected. Everything is taxed. Here they find a place to earn extra money. It is a pity that everywhere a man has to be cherished. This is sad ...

[jona]

The government will always find away to get their taxes when its come to money whether we like it or not.As far as you will convert your crypto to fiat currency they most have there way to their taxes.

[Scorpion]

I'm not sure if anonymity was broken but regardless of that fact I have no problem paying my taxes, paying taxes means I made money and I am willing to contribute my fair share to the country to help a functioning society.

[Dluretic]

Is there any country that has begun to study bitcoin's taxes? I think a lot of countries will be paying taxes on bitcoin in the future. After all, it's a very profitable thing to do.

[Habakkuk77]

Bitcoin is considered as income and property, in that case governments and tax experts can impose tax on it.
 The Internal Revenue Service is on the hunt for people who used Bitcoin to evade taxes.
But this thing would be a disturbance for the investors for bitcoin.
Paying taxes might affect interest of investors and it might affect also the value of bitcoin. Well we have nothing to but obey the governments rule than to be put into imprisonment.

[Mike Mayor]

Did any of you actually read the article? It's one of those articles against Bitcoin written by altcoin supporters so obviously it makes sense that it will portray Bitcoin in a negative sense. It's very exaggerated and you don't need to actually read the whole thing just a quick scan through and you will see what I mean. The little drama fairy was heavy on the dust there. They also never said bitcoin will be taxed I wish people would listen. When you convent bitcoin to fiat then you are taxed if it's over a certain amount per year or month. You should actually know about these things before commenting. You don't have to report your exchange activity to anyone that is your business in everyone sense of the word. You just need to report what you cashout in fiat. I can't believe some people think the government needs to know every little thing. They don't look at that only if there is a problem. They don't have time to do that when there are millions of people to go through. You just report your earnings as in what went into your bank account and how it got there for example from trading. You don't have to report which coins you traded and for how much profit. You report when you convert it to fiat. Otherwise everything would be much too complicated and unnessesry. I promise you the government is not out to get crypto currency users.

This article is written to bring fear so they make the government and IRS look like that will hunt you don't. I'm no fan of the government but even I know that is ridiculous. What will get the attention of the IRS is the following:

Large transactions to your bank account.
Constant transactions over a long period of time that constantly go over the limit and qualify for tax.
You buy a new house that is a little too nice for the IRS liking.
You buy a fancy car.
Overseas travels out of the blue.

Things that won't get you under IRS/government watch:

Buying a big screen TV, sound system, computer, old car ect ect (within reason)

So just report your profits when you withdraw to fiat and pay whatever amount your government wants in your country and then you done. If you want to know what tax % you will pay then you must look at "capital gains tax" in most cases.

[RockHenki]

Incognito is a great feature that people remember about bitcoin. If the anonymity of the bitcoin is really detected, this is a sad news. I need to verify this story. Please share more about the article you read about this issue for everyone to consult.

[rjbtc2017]

Here he is again posting another FUD inducing article. Your link is already 3 months old, so i don't get it why are you posting it and pumping it real hard to other members here. TAX is for the people who cashing out their Bitcoin and that's applicable to exchanges, and for another note you should know that exchanges collects information (KYC) and just like coinbase who denied to the request of IRS to get the information of coinbase customers.

[Ayiranorea]

Here he is again posting another FUD inducing article. Your link is already 3 months old, so i don't get it why are you posting it and pumping it real hard to other members here. TAX is for the people who cashing out their Bitcoin and that's applicable to exchanges, and for another note you should know that exchanges collects information (KYC) and just like coinbase who denied to the request of IRS to get the information of coinbase customers.

Yes, this has been getting circulated long back. Bitcoin is already partially anonymous, because the transaction can be traced and the end users cannot be identified. When it comes to taxation, people who cash out bitcoin were taxed based on the transaction volume and this has been into effect long back itself in several countries.

[TagaMungkahi]

What the Hell, You really have to pay tax and declare your earnings on Bitcoin , specially if you will cash it out on exchanges, i don't see the problem on it, the only problem here is the IRS want to collect all the information of the customers which is invading their privacy, and the regulation for Bitcoin is not even finalized.

[pacamobradillo]

Incidentally bitcoin is broken, all those who are complaining bitcoin have to pay taxes, it greatly affects the property or the amount of investors
Bitcoin is a virtual currency based on customers and investors, not international money. Bitcoins do not have to pay taxes to countries where bitcoin is available.

[olubams]

The IRS has broken Bitcoin anonymity.

Apart from the obvious impact on criminals, this also means that all Bitcoin investors will be forced to pay taxes of their earnings. And be fined for past Bitcoin earnings they have not reported.

https://www.technocracy.news/index.php/2017/08/28/bitcoin-loses-anonymity-irs-tracks-bitcoiners-new-blockchain-analysis-tools/

There is still some good news from this even though a lot of people might not agree but from this point it then means that there is some form of legality to bitcoin and not illegal as some people might want to paint it. A lot of people actually want to pay tax and disclose their income but they don't know how to go about it because of the dicey nature of the interpretation of the law but with this, we are sure to know which side of the law we belong to.

The concern I will have is going back to tax what was not known is like a punishment which I feel should be suspended or else, users will start looking for new ways to break the law.

[googs84]

Taxes are the backbone of any economy. Government runs the economy on the collection of taxes that is the main source of income for them. So no government of any country will let its citizens to earn income without paying taxes. Bitcoin is the fastest growing cryptocurrency, same is with its value. People are earning good income from bitcoin trading, but being a virtual currency it is difficult for government to impose tax on it. In USA income generated from cryptocurrency is treated as ccapital gain, and taxes get imposed. Same is the case in India where no clear guidelines are there from finance department, so income will taxed flat 20% as Capital gain.

[megynacuna]

Here he is again posting another FUD inducing article. Your link is already 3 months old, so i don't get it why are you posting it and pumping it real hard to other members here. TAX is for the people who cashing out their Bitcoin and that's applicable to exchanges, and for another note you should know that exchanges collects information (KYC) and just like coinbase who denied to the request of IRS to get the information of coinbase customers.

Yes, this has been getting circulated long back. Bitcoin is already partially anonymous, because the transaction can be traced and the end users cannot be identified. When it comes to taxation, people who cash out bitcoin were taxed based on the transaction volume and this has been into effect long back itself in several countries.

I guess since bitcoin value grew past 9k$ they are trying to bring it down through their evil machinations and ploys. It's always been their stock in trade to spread false rumours and FUD's in order to persuade the faint hearted  to sell off their bitcoins. This trick used to work but in recent times it backfires because bitcoin rises back up after each tumble.

[jman0war]

Incidentally bitcoin is broken, all those who are complaining bitcoin have to pay taxes, it greatly affects the property or the amount of investors
Bitcoin is a virtual currency based on customers and investors, not international money. Bitcoins do not have to pay taxes to countries where bitcoin is available.

Your post literally makes no sense.