Chainalysis software for nabbing Tax evaders

[Cointribute]

IRS contracted to use Chainalysis software for nabbing Tax evaders if they don't pay their fairshare to tax payers fund. Any idea on Chainalaysis tool? Any links for IRS guidelines for filing taxes in US?

[Dapper]

I think it'll be about as effective as alcohol prohibition laws of the early 20th century. 

[Kakmakr]

Bitcoin is defined as a commodity in the USA, so I would say that Capital Gain tax must be paid on the profit that are made with the trades on exchanges. The moment when fiat currency conversion is done, people will be liable to pay taxes on those transactions.

If you earn bitcoins and you store it on paper wallets and you have not cashed out, then no gain was received. <So you cannot pay taxes on that>

[btcblockchain]

Now Nasdaq is listing BITCOIN FUTURE so USA govt is more advance looking Bitcoin as future currency so IRS need to find new ways to collect tax

[Gerci]

According to article 1, in taxation, software applications are divided into 2 categories: general applications and special applications. A common application program is a program that can be used by common users to process various jobs with a computer. A special application program is a program designed specifically for the automation of certain administrative systems, jobs or business activities, such as in banking, capital markets, hotels, hospitals or aviation. In this case I think the accounting application program, is a special application program category.

[BrewMaster]

IRS contracted to use Chainalysis software for nabbing Tax evaders if they don't pay their fairshare to tax payers fund. Any idea on Chainalaysis tool? Any links for IRS guidelines for filing taxes in US?

there are no reliable chain analysis techniques or software that anyone can use to prove anything. that is how bitcoin is designed.

besides the cost of using something like that and then cost of proving anything is a lot more than simply contacting exchanges like Coinbase and asking them to release their customer information to IRS

.... wait a minute IRS and Coinbase are already doing that

[GreenBits]

IRS contracted to use Chainalysis software for nabbing Tax evaders if they don't pay their fairshare to tax payers fund. Any idea on Chainalaysis tool? Any links for IRS guidelines for filing taxes in US?

You can find the guidance, its all over the forum and the interwebz. I want to address CA.

Chainanalysis was designed to trace illicit transactions. given that the average bitcoin user will do far less that the average criminal to obscure an address, essentially this is a smoking gun. using your known exchange address as a starting point (somewhere that you underwent KYC/AML), the tool should allow folks to walk back up the chain through the series of wallet interactions (people tend not to send money to random folks )

use the dark coins. but assume everything you have done on a blockchain up to this point is discoverable, and use dark coins in the future if you want to avoid this tracking.

[Mike Mayor]

I think it'll be about as effective as alcohol prohibition laws of the early 20th century. 

Exactly. It's like trying to catch an eagle with a butterfly net ^^ It would be the most ineffective thing ever and I don't even believe the IRS is doing this I think it's just talk.

IRS contracted to use Chainalysis software for nabbing Tax evaders if they don't pay their fairshare to tax payers fund. Any idea on Chainalaysis tool? Any links for IRS guidelines for filing taxes in US?

there are no reliable chain analysis techniques or software that anyone can use to prove anything. that is how bitcoin is designed.

besides the cost of using something like that and then cost of proving anything is a lot more than simply contacting exchanges like Coinbase and asking them to release their customer information to IRS

.... wait a minute IRS and Coinbase are already doing that

Yep that's why I say it's just talk. Whoever said that didn't think very much because it's not possible even.

[Cointribute]

IRS contracted to use Chainalysis software for nabbing Tax evaders if they don't pay their fairshare to tax payers fund. Any idea on Chainalaysis tool? Any links for IRS guidelines for filing taxes in US?

Here are the Tax filing guidelines for the income from Crypto assets in year 2017.

https://www.irs.gov/pub/irs-drop/n-14-21.pdf