Can Bittrex report me outside of US ?

[Cilnwen]

I have a big problem.

I made some transactions (about 10 i guess)  last year from kraken to bittrex (BTC) to trade on bittrex but i can’t report my bittrex gains of last year... because i lost so much that i can't pay those taxes. (gained 12k$ and lost 4k5$ but from that 12K$ i have some coin that i have lost private key... which is a big % of those 12k gains).

In case of control from the IRS of my country (i am in France) , could they know all my bittrex Transactions ?

From my understanding my country doesn't know that i have a bittrex account because there is no money transfert from my bank account to bittrex but only from my bank to kraken where i bought BCH that i will report when i will sell them next year. Plus my btc transaction from kraken to bittrex are not visible on kraken because there is just the amount of BTC transfered not the txID or destination address  and deposit address automaticaly expire after 7 days) so i can say that i am still holding those btc)

On the Bittrex  privacy policy here :
https://support.bittrex.com/hc/en-us/articles/360000524951-Bittrex-Inc-Privacy-Policy-Version-2

It is wrote :  “Transfer of Information to the U.S. and Other Countries” but which countries ?

Plus i saw this news (which is coinbase but could apply to bittrex in the future) :

the San Francisco court ruled Coinbase had to turn over identifying records for all users who have completed transactions of more than $20,000 through their accounts in a single year between 2013 and 2015. The data requested includes taxpayer IDs, names, dates of birth, addresses, and transaction records from that period.

Who is concerned on that news ? US citizens only ? How would it work in my case ? And how can i know if the total of my completed transactions in $ to see if i am under 20 000$ ?

Bittrex recently deleted all of my trade/order history but they are still available if i download the csv and there is still my deposit / withdraw history
Am i fucked ? even if i ask for closure of my bittrex account (they have my ID) ?

Can i simulate an hack of my bittrex account ?

Thanks

[1Referee]

Simulating a hack of your account won't do anything since you are responsible for everything in the end.

You can always ask Bittrex what countries they 'cooperate' with when it comes to sharing data, but even if they don't share any of that with you (they are not obliged to do so), you should consider all your trading logs to be compromised. That's why people should always think before making use of centralized exchanges; everything can potentially have consequences for you.

Good thing with Bittrex is that it isn't a direct fiat exchange, which significantly lowers the priority for local tax departments to act in these cases.

If I was you I would just ignore it. Don't wake up sleeping dogs when it isn't needed, because it will definitely work against you.

[audaciousbeing]

I have a big problem.

I made some transactions (about 10 i guess)  last year from kraken to bittrex (BTC) to trade on bittrex but i can’t report my bittrex gains of last year... because i lost so much that i can't pay those taxes. (gained 12k$ and lost 4k5$ but from that 12K$ i have some coin that i have lost private key... which is a big % of those 12k gains).

In case of control from the IRS of my country (i am in France) , could they know all my bittrex Transactions ?

From my understanding my country doesn't know that i have a bittrex account because there is no money transfert from my bank account to bittrex but only from my bank to kraken where i bought BCH that i will report when i will sell them next year. Plus my btc transaction from kraken to bittrex are not visible on kraken because there is just the amount of BTC transfered not the txID or destination address  and deposit address automaticaly expire after 7 days) so i can say that i am still holding those btc)

On the Bittrex  privacy policy here :
https://support.bittrex.com/hc/en-us/articles/360000524951-Bittrex-Inc-Privacy-Policy-Version-2

It is wrote :  “Transfer of Information to the U.S. and Other Countries” but which countries ?

Plus i saw this news (which is coinbase but could apply to bittrex in the future) :

the San Francisco court ruled Coinbase had to turn over identifying records for all users who have completed transactions of more than $20,000 through their accounts in a single year between 2013 and 2015. The data requested includes taxpayer IDs, names, dates of birth, addresses, and transaction records from that period.

Who is concerned on that news ? US citizens only ? How would it work in my case ? And how can i know if the total of my completed transactions in $ to see if i am under 20 000$ ?

Bittrex recently deleted all of my trade/order history but they are still available if i download the csv and there is still my deposit / withdraw history
Am i fucked ? even if i ask for closure of my bittrex account (they have my ID) ?

Can i simulate an hack of my bittrex account ?

Thanks

Reading through all of this, I can only think that the only reason why Bittrex support wont give the information to them is if they did not ask or the request is not made by a competent court with the right to request for such information. Other than that, be sure they would gladly comply with such request and there is nothing you will be able to do about it.

You considered hacking your account, I think that is on the extreme which is a criminal offence on its own and you are not certain that you will even be successful at it and you would put yourself in more deep trouble. But I dont see why you should be bothered, its a civil matter if eventually it happens. You will pay the fine and if you have a good tax manager, you could get it reduced to a large extent just get your books in order.

[Lakai01]

Don't think about hacking your own account. It would make things much worse ...
You wrote that you gained about 12k but lost access to that coins. If so you should contact a lawyer, I am not sure if you would have to pay taxes for those lost coins after all.

[gentlemand]

What is the French tax man like? The UK one is pretty mellow unless provoked. The American tax man is a fucking psycho.

Lots of people have received IRS letters via Coinbase who've never been to the US. They have no jurisdiction over you so just bin them.

I really can't believe anyone other than the IRS would bother collecting information from Bittrex. If the French tax man could be bothered, and I'd be very impressed if they did, just claim your ID was stolen and someone opened an account in your name.

[countryfree]

I'm sure Bittrex has better things to do than report you to your government. Bittrex is not a bank, so it doesn't have to follow AEOI regulations, nor is it concerned by the tax agreement between your country and the US. You're safe, and I don't expect this to change before years.

[dunfida]

Simulating a hack of your account won't do anything since you are responsible for everything in the end.

You can always ask Bittrex what countries they 'cooperate' with when it comes to sharing data, but even if they don't share any of that with you (they are not obliged to do so), you should consider all your trading logs to be compromised. That's why people should always think before making use of centralized exchanges; everything can potentially have consequences for you.

Good thing with Bittrex is that it isn't a direct fiat exchange, which significantly lowers the priority for local tax departments to act in these cases.

If I was you I would just ignore it. Don't wake up sleeping dogs when it isn't needed, because it will definitely work against you.

In short, you are just stressing yourself out into those things which arent supposed to mind of.The good thing on here is that Bittrex isnt a direct fiat exchange same as Referee said where this thing already do signifies that you are still on safe side.Lets assume you do let the dogs wake up and do make some investigation for further verification for sure this wont really be a short process.It would still takes time.For OP better to sip out some coffee and dont worry up too much.

[Wheelige]

If you genuinely do not control the private keys of the accounts that made accounting gains then you wont have to pay tax on that as you personally do not control the asset or the accounting gains.
Does France make you pay tax on unrealised gains, or does it only become a taxable event once it is sold and the gains are realised?
If its realised once again you'd be fine a. because you cant sell those coins and realise the gains and b. because your willing to pay tax on assets you sell.
Bittrex can not be forced to hand over your private information to tax authorities in any country other than the states, as my understanding is that they are located there. There is precedent that US courts will compel exchanges to hand over trading information of their clients, however the french courts will not have jurisdiction over Bittrex to compel them.

Also please look after your private keys.

[Name: Claudio]

If taxes is really implemented on your country and your earning with your wallet that hade been hacked or you lose control of the password with and you need to pay tax, at least I suggest to consult it with any authorize agency in your country or a lawyer just incase some problem arise when you did not pay your tax, or maybe when you talk to a lawyer he can help you to be exempt on your tax with that wallet of yours.

[carlfebz2]

If taxes is really implemented on your country and your earning with your wallet that hade been hacked or you lose control of the password with and you need to pay tax, at least I suggest to consult it with any authorize agency in your country or a lawyer just incase some problem arise when you did not pay your tax, or maybe when you talk to a lawyer he can help you to be exempt on your tax with that wallet of yours.

You are just shitposting pal! How does a hacked wallet or lose control of your password would be the reason why you need to pay tax? and also you are not totally reading up on the things being said on OP and its much better to read up once again and do post proper and relevant thing.

I dont see that Bittrex would easily give out informations of each account holder specially on big ones unless if government of your country do make such legal moves to check out then its a possible thing you would be caught but you can totally evade where you insist that you dont have the full control of the keys of such wallet but i dont know on how they would treat such reasoning.

[darkangel11]

What is the French tax man like? The UK one is pretty mellow unless provoked. The American tax man is a fucking psycho.

Lots of people have received IRS letters via Coinbase who've never been to the US. They have no jurisdiction over you so just bin them.

I really can't believe anyone other than the IRS would bother collecting information from Bittrex. If the French tax man could be bothered, and I'd be very impressed if they did, just claim your ID was stolen and someone opened an account in your name.

The IRS is probably the only tax office in the world that goes after US citizens who work abroad and might have some income on their offshore accounts. I've been living in a number of EU countries and their tax jurisdiction was always tightly connected with residency. Since the residency can be changed without any problems within the EU, they aren't even trying to find out where you're working at the moment, so you basically can choose the country with the most lenient tax system, rent a room, fill some papers and you're set.

Reading through all of this, I can only think that the only reason why Bittrex support wont give the information to them is if they did not ask or the request is not made by a competent court with the right to request for such information.

I second that. If a foreign tax office asks them about you specifically, they will most likely cooperate (although they could ignore it and be fine). They won't send letters with your personal info without being asked for it.

[jseverson]

The Coinbase ruling is specifically for the IRS, and the IRS doesn't have any jurisdiction over your taxes. Even if the IRS somehow got their hands on your data, I seriously doubt they would waste time reporting you to the proper authorities. That also means Bittrex won't send your data to your tax agency unless they are specifically requested to provide it, and even then they could choose not to.

I do not recommend not declaring transactions, but no, I don't think you're fucked. You could probably get away with not doing anything right now, but you risk being in bigger trouble in the future in case France pulls an IRS-like move. I'm not saying it will happen, just that it could, and all things considered it may simply be safer to just declare your losses (I mean if they're as big as you say they are, you shouldn't get a big tax bill anyway) and move on.

[marielbeckham]

That's really a huge problem.

[pixie85]

That's really a huge problem.

It's not. Bittrex will not report him anywhere. Private companies don't report people to the IRS or any other local tax authority without being asked. There's no need to worry, especially if you're not making a lot.

[gentlemand]

It's not. Bittrex will not report him anywhere. Private companies don't report people to the IRS or any other local tax authority without being asked. There's no need to worry, especially if you're not making a lot.

Um, they're all likely to be asked when they get noticeable enough, Coinbase was the first but it won't be the last, and they may not be obligated to tell you they've handed over the relevant information either, it's probably buried somewhere in their terms and conditions.

In this particular case I don't think it'll ever be a problem. Americans though would be very stupid to trade massively in a verified account without having their tax shit together.

[richardsNY]

Americans though would be very stupid to trade massively in a verified account without having their tax shit together.

With the general mentality of people being that crypto offers full privacy and that it isn't legal in the states and thus doesn't require them to pay tax, things might actually be very worrisome for them, and they don't know it yet. This market is infested with brainless clowns thinking they can outsmart the system, but they will pay the price for it eventually. I wouldn't be surprised if Bittrex at some point silently updates its terms where it states that it won't be be needing to notify people before exchanging information about them with their local tax agencies. It will require people to constantly keep reading their terms before doing anything on that exchange, but who will actually do that?

[gentlemand]

This market is infested with brainless clowns thinking they can outsmart the system, but they will pay the price for it eventually.

Indeed. I love those threads that say 'but I took a risk and it's, like, on the internet so I shouldn't have to pay any tax.'

Yep. Go right ahead and see how that works out for you. There'll be some very sad pinheads in a few years when all this stupidity catches up with them. 

[labhsikh123]

I think that it is serious problem. But you did not need to report outside of US for Bittrex. Bittrex is not a bank and another country goverment did not know about your Bittrex.