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Author Topic: Bitcoin is "NOT" Legal Tender According to IRS  (Read 5129 times)
cbeast
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October 25, 2014, 03:46:53 AM
 #41

What is legal tender in the U.S.? To my knowledge only U.S. Dollars are legal tender. It should come as no surprise that bitcoin can't be used to pay taxes. 

Some US states also include gold and silver as Legal Tender.
https://statelegaltender.com/

I am not a fan of legal tender laws generally.
You can ignore them. Many US Federal buildings refuse USD and only take credit cards or personal checks.

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
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October 25, 2014, 04:10:38 AM
 #42

What is legal tender in the U.S.? To my knowledge only U.S. Dollars are legal tender. It should come as no surprise that bitcoin can't be used to pay taxes.  

Some US states also include gold and silver as Legal Tender.
https://statelegaltender.com/

I am not a fan of legal tender laws generally.
You can ignore them. Many US Federal buildings refuse USD and only take credit cards or personal checks.

That's because while their minders don't trust them with their cash, they do trust them with our cards and account information.
Bitcoin could solve this trust problem for them easily enough.  The cashier doesn't need to know the private key, but can verify the transfer, and perform their function.

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October 25, 2014, 12:46:46 PM
 #43

The problem with income tax is that it is becoming increasing difficult to define exactly what is taxable income. Thus the super-efficient IRS and our magnificent tax laws. I find it amusing to watch an agency stuck in the 70's trying to figure out what exactly bitcoin is. Ditto for just about anyone else over 50. Meanwhile, the "true" measure of all wealth (that would be the dollar) continues to devalue. Hey IRS!

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October 25, 2014, 01:06:29 PM
 #44

3 pages on this thread and only a couple half-way decent replies.  A meme was posted that claimed most people don't understand the financial system and this thread proves that:

-Legal Tender means places are required, by law, to accept Bitcoin.  This is incredibly unlikely and would be essentially a law forcing people to take Bitcoin.

-The IRS has no authority to declare anything to be legal tender.  Congress does that unless they delegate that authority to someone else like the IRS.

-The IRS has put an advisory opinion that Bitcoin transactions would generally be considered the bartering of property.  It does leave open the possibility that your specific situation may be different or that it may change in the future. This is perfectly valid advice for me at this time.  Last year I had many more transactions at exchanges than I did buying goods and services. 

-The IRS did not "declare" anything or create any new laws or orders, they simply gave advice based on their current rules.  Such a ruling in not binding other places or affect other definitions such as those by FinCEN or the Courts (Shavers and Silk Road).  There are phone numbers on the IRS notice and I have spoken with the women who is handling how digital currencies are reported and she is very helpful.  I had called her about the issue that the guidance was issued so late in tax season that it caused me to file an extension.  I had hired some local accountants and they screwed everything up so I ended using Tyson Cross.

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October 25, 2014, 05:16:09 PM
 #45

-The IRS did not "declare" anything or create any new laws or orders, they simply gave advice based on their current rules.  Such a ruling in not binding other places or affect other definitions such as those by FinCEN or the Courts (Shavers and Silk Road).  There are phone numbers on the IRS notice and I have spoken with the women who is handling how digital currencies are reported and she is very helpful.  I had called her about the issue that the guidance was issued so late in tax season that it caused me to file an extension.  I had hired some local accountants and they screwed everything up so I ended using Tyson Cross.
Congress with often direct Federal Agencies (via law) to create a new rules (or more often, rules) regarding some specific issue that congress wants address. Congress does not direct the agency to make a rule go one way or another, but just to make a rule that achieves a broad public policy. The agency would then draft a rule, solicit public comments, and then potentially edit and repeat, or create a final rule which would have the same effect as law as congress has delegated this authority to them.
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October 29, 2014, 01:03:24 AM
 #46

3 pages on this thread and only a couple half-way decent replies.  A meme was posted that claimed most people don't understand the financial system and this thread proves that:

-Legal Tender means places are required, by law, to accept Bitcoin.  This is incredibly unlikely and would be essentially a law forcing people to take Bitcoin.

-The IRS has no authority to declare anything to be legal tender.  Congress does that unless they delegate that authority to someone else like the IRS.

-The IRS has put an advisory opinion that Bitcoin transactions would generally be considered the bartering of property.  It does leave open the possibility that your specific situation may be different or that it may change in the future. This is perfectly valid advice for me at this time.  Last year I had many more transactions at exchanges than I did buying goods and services. 

-The IRS did not "declare" anything or create any new laws or orders, they simply gave advice based on their current rules.  Such a ruling in not binding other places or affect other definitions such as those by FinCEN or the Courts (Shavers and Silk Road).  There are phone numbers on the IRS notice and I have spoken with the women who is handling how digital currencies are reported and she is very helpful.  I had called her about the issue that the guidance was issued so late in tax season that it caused me to file an extension.  I had hired some local accountants and they screwed everything up so I ended using Tyson Cross.

QFT

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November 13, 2014, 01:57:44 AM
 #47

What is legal tender in the U.S.? To my knowledge only U.S. Dollars are legal tender. It should come as no surprise that bitcoin can't be used to pay taxes. 

Basically, paper money and coinage.  All "legal tender" means is that if one offers, that is, "tenders" it, to satisfy a debt, refusal to accept it effectively limits the right to try to collect it in court, as the creditor refused payment.  It does not mean that one must accept it for debts not yet incurred, i.e. someone can choose to refuse to sell you gasoline for cash and instead insist on payment by credit card.
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November 13, 2014, 05:16:08 AM
 #48

It should come as no surprise that bitcoin can't be used to pay taxes. 
http://pando.com/2014/01/15/pay-your-taxes-in-bitcoin-snapcard-launches-bill-pay-makes-the-irs-its-first-payee/

Apparently you can pay IRS taxes with bitcoin, through these folks, for a 2% surcharge.

FREE MONEY1 Bitcoin for Silver and Gold NewLibertyDollar.com and now BITCOIN SPECIE (silver 1 ozt) shows value by QR
Bulk premiums as low as .0012 BTC "BETTER, MORE COLLECTIBLE, AND CHEAPER THAN SILVER EAGLES" 1Free of Government
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November 13, 2014, 07:55:53 PM
 #49

Apparently you can pay IRS taxes with bitcoin, through these folks, for a 2% surcharge.

Considering the charges for going through coinbase or circle, though, you'd probably be better off just converting to USD and then paying yourself with a check or ACH.
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November 13, 2014, 08:11:10 PM
 #50

It should come as no surprise that bitcoin can't be used to pay taxes. 
http://pando.com/2014/01/15/pay-your-taxes-in-bitcoin-snapcard-launches-bill-pay-makes-the-irs-its-first-payee/

Apparently you can pay IRS taxes with bitcoin, through these folks, for a 2% surcharge.


Ha. although I don't like a fee for paying taxes.

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November 14, 2014, 10:30:17 AM
 #51

It should come as no surprise that bitcoin can't be used to pay taxes. 
http://pando.com/2014/01/15/pay-your-taxes-in-bitcoin-snapcard-launches-bill-pay-makes-the-irs-its-first-payee/

Apparently you can pay IRS taxes with bitcoin, through these folks, for a 2% surcharge.


Ha. although I don't like a fee for paying taxes.

Probably it is a package deal...2% plus a free audit.

FREE MONEY1 Bitcoin for Silver and Gold NewLibertyDollar.com and now BITCOIN SPECIE (silver 1 ozt) shows value by QR
Bulk premiums as low as .0012 BTC "BETTER, MORE COLLECTIBLE, AND CHEAPER THAN SILVER EAGLES" 1Free of Government
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