New Crypto Tax Law In US 10k+ Transactions Must Report to IRS in 15 Days

[tread93]

Here is the Article:

https://news.bitcoin.com/new-crypto-tax-law-takes-effect-in-us-transactions-of-10000-or-more-must-be-reported-to-irs-within-15-days/

As of Jan 1st 2024. They are asking you to report who is sending the funds you also need to include the name, physical address, social security number, transaction amount, and nature of the transaction. 

Read more on DailyCoin: https://dailycoin.com/new-irs-crypto-law-targets-traders-with-ambiguous-tax/

I think this is completely ludacris, and they only give you 15 days to do it or they state that you could potentially get a felony, I mean is this some kind of joke?

This is honestly on par with FinCen requirements for ISOs and Money Service Businesses but for crypto instead of cash. Honestly how are they going to enforce this strict policy?

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[Poker Player]

Honestly how are they going to enforce this strict policy?

In cases of P2P transactions they will not be able to, but where one of the parties is a company, they will have to report them. Although $10K is pretty good, in the EU they want to leave the threshold at only €1K.

EU lawmakers impose €1,000 cap on anonymous crypto, cash transactions

[zasad@]

Honestly how are they going to enforce this strict policy?

In cases of P2P transactions they will not be able to, but where one of the parties is a company, they will have to report them. Although $10K is pretty good, in the EU they want to leave the threshold at only €1K.

EU lawmakers impose €1,000 cap on anonymous crypto, cash transactions

This law talks about cryptocurrency transactions. If an American receives dollars from a P2P exchange into his account, then this is probably a different law.
Structuring in money in the USA is also a crime if proven.
https://bitcointalk.org/index.php?topic=5476789.msg63437744#msg63437744

__
As they say, welcome to Russia. Store any amount in cryptocurrency. But here you need to understand that you should not tell anyone that you have savings in cryptocurrency

[bbc.reporter]

Here is the Article:

https://news.bitcoin.com/new-crypto-tax-law-takes-effect-in-us-transactions-of-10000-or-more-must-be-reported-to-irs-within-15-days/

As of Jan 1st 2024. They are asking you to report who is sending the funds you also need to include the name, physical address, social security number, transaction amount, and nature of the transaction.

Read more on DailyCoin: https://dailycoin.com/new-irs-crypto-law-targets-traders-with-ambiguous-tax/

I think this is completely ludacris, and they only give you 15 days to do it or they state that you could potentially get a felony, I mean is this some kind of joke?

This is honestly on par with FinCen requirements for ISOs and Money Service Businesses but for crypto instead of cash. Honestly how are they going to enforce this strict policy?

The joke is when they begin enforcing this by requiring the user who are using nonhosted wallets to register them by submitting for documents for KYC or tell you to move your funds to a centralized hosted wallet that has registered with the proper government departments.

Everything that has been speculated years ago in social media and in this forum is presently starting to happen. What the next occurrence might be is they will not allow people from a lower income bracket from investing in the cryptospace.

[avikz]

Here is the Article:

https://news.bitcoin.com/new-crypto-tax-law-takes-effect-in-us-transactions-of-10000-or-more-must-be-reported-to-irs-within-15-days/

As of Jan 1st 2024. They are asking you to report who is sending the funds you also need to include the name, physical address, social security number, transaction amount, and nature of the transaction. 

Read more on DailyCoin: https://dailycoin.com/new-irs-crypto-law-targets-traders-with-ambiguous-tax/

I think this is completely ludacris, and they only give you 15 days to do it or they state that you could potentially get a felony, I mean is this some kind of joke?

This is honestly on par with FinCen requirements for ISOs and Money Service Businesses but for crypto instead of cash. Honestly how are they going to enforce this strict policy?

All the best Americans! US is going to bring down the crypto market on their soil through useless regulations and punitive actions if not complied. From the actions of IRS and various other regulatory bodies, it is very clear that US government is seeing cryptocurrency as a threat.

If you are holding your life savings in Bitcoin, move to Singapore and live a happy life!

[jaydenson00]

The new US crypto tax law raises eyebrows! Ensure compliance with timely reporting on transactions exceeding 10k. On another note, in a sunlit city like Dubai, let's not forget to soak in some sun to combat potential Vitamin D deficiency. Stay informed, stay healthy.

[bbc.reporter]

Here is the Article:

https://news.bitcoin.com/new-crypto-tax-law-takes-effect-in-us-transactions-of-10000-or-more-must-be-reported-to-irs-within-15-days/

As of Jan 1st 2024. They are asking you to report who is sending the funds you also need to include the name, physical address, social security number, transaction amount, and nature of the transaction. 

Read more on DailyCoin: https://dailycoin.com/new-irs-crypto-law-targets-traders-with-ambiguous-tax/

I think this is completely ludacris, and they only give you 15 days to do it or they state that you could potentially get a felony, I mean is this some kind of joke?

This is honestly on par with FinCen requirements for ISOs and Money Service Businesses but for crypto instead of cash. Honestly how are they going to enforce this strict policy?

All the best Americans! US is going to bring down the crypto market on their soil through useless regulations and punitive actions if not complied. From the actions of IRS and various other regulatory bodies, it is very clear that US government is seeing cryptocurrency as a threat.

If you are holding your life savings in Bitcoin, move to Singapore and live a happy life!

However, it might only be the beginning. The American government has always been the template where other governments look what they can copy and use them in their own regulatory structure. Also, the government's purpose on strict regulations is control of the flow of money. You do not think the Singaporean government will begin imposing strict regulations when they notice that the cryptospace is being used for moneylaundering and tax evasion under their jurisdiction also?

[philipma1957]

the biggest issue for me is how to report hitting a solo block.  I would need to report the receipt of it from the pool running it. Say ck solopool. or worse if I self mine a solo block I would have zero idea how to report it.

I can certainly justify my decisions to take my pool payments at lower than 5k.

As 2  pools lost my funds with 1 never repaying the coins.

So letting the pools hold beyond 10 k is not a normal thing to do.

But if my mine earns more than 10k in a day I would need to report that.

[Poker Player]

The joke is when they begin enforcing this by requiring the user who are using nonhosted wallets to register them by submitting for documents for KYC or tell you to move your funds to a centralized hosted wallet that has registered with the proper government departments.

Everything that has been speculated years ago in social media and in this forum is presently starting to happen.

I have been saying for a long time that the goal of politicians is to force Bitcoin transactions to be like bank transactions, with KYC everywhere. I wouldn't be surprised if in the future self-hosted wallets are banned, or you are forced to pass a KYC to buy it, things like that.

What the next occurrence might be is they will not allow people from a lower income bracket from investing in the cryptospace.

That is not going to happen. You can't pass discriminatory laws like that in democracies.

[Davidvictorson]

All the best Americans! US is going to bring down the crypto market on their soil through useless regulations and punitive actions if not complied. From the actions of IRS and various other regulatory bodies, it is very clear that US government is seeing cryptocurrency as a threat.

If you are holding your life savings in Bitcoin, move to Singapore and live a happy life!

Dear Americans I think you are faced with two options here, either comply with the new crypto tax law as a patriotic citizen of the United States, or, if you believe your rights are being violated then follow in the footsteps of your forefathers. Seek out places with greater opportunities, with lower taxes and fewer obstacles in establishing and conducting businesses that have the potential to make a global impact. If you contemplating potential destinations, Avikz has already suggested Singapore, and I would like to add Australia, Dubai, El Salvador, and Argentina to the list.

[Apocollapse]

If you are holding your life savings in Bitcoin, move to Singapore and live a happy life!

Seek out places with greater opportunities, with lower taxes and fewer obstacles in establishing and conducting businesses that have the potential to make a global impact. If you contemplating potential destinations, Avikz has already suggested Singapore, and I would like to add Australia, Dubai, El Salvador, and Argentina to the list.

It's not as simple as that, according to IRS, you must file your tax even you're live in other country.

Since Bitcoin is using public blockchain, everything is recorded. I don't think changing a citizenship will make you able to claim your old earnings in US is subject to the new country. But that's if you want to being a good US citizens, you have an option to lie, creating a fake business or other way to lower your tax legally.

1. I’m a U.S. citizen living and working outside of the United States for many years. Do I still need to file a U.S. tax return?

Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits. Visit Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for additional information.

[zasad@]

I have been saying for a long time that the goal of politicians is to force Bitcoin transactions to be like bank transactions, with KYC everywhere. I wouldn't be surprised if in the future self-hosted wallets are banned, or you are forced to pass a KYC to buy it, things like that.

We are saying the same thing, except that many cryptocurrency users themselves do not want to use decentralized services because of their inconvenience and large time costs. For most people, it is easier to store coins on an exchange and the banality of this situation is that many people use the exchange not for trading but for storing coins as a convenient multi-currency wallet.

[tread93]

If you are holding your life savings in Bitcoin, move to Singapore and live a happy life!

Seek out places with greater opportunities, with lower taxes and fewer obstacles in establishing and conducting businesses that have the potential to make a global impact. If you contemplating potential destinations, Avikz has already suggested Singapore, and I would like to add Australia, Dubai, El Salvador, and Argentina to the list.

It's not as simple as that, according to IRS, you must file your tax even you're live in other country.

Since Bitcoin is using public blockchain, everything is recorded. I don't think changing a citizenship will make you able to claim your old earnings in US is subject to the new country. But that's if you want to being a good US citizens, you have an option to lie, creating a fake business or other way to lower your tax legally.

1. I’m a U.S. citizen living and working outside of the United States for many years. Do I still need to file a U.S. tax return?

Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits. Visit Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, for additional information.

Yes this is correct, unless you officially annouce your citizenship and pay your exit taxes, which are absurd as well. Not that I would ever do that but my goodness its so ironic that America was created due to taxation and now we are the most taxed nation in the world it seems like (I am not sure if that is true or not). Given what happened w/ Covid I would not touch Australia with a 10 foot pole! At least I still have my freedoms here in the US. Singapore would be great, but who is to say they don't get invaded in the future. If you want to find a great place to flee to that doesn't tax go to Cayman!

[zasad@]

Yes this is correct, unless you officially annouce your citizenship and pay your exit taxes, which are absurd as well. Not that I would ever do that but my goodness its so ironic that America was created due to taxation and now we are the most taxed nation in the world it seems like (I am not sure if that is true or not). Given what happened w/ Covid I would not touch Australia with a 10 foot pole! At least I still have my freedoms here in the US. Singapore would be great, but who is to say they don't get invaded in the future. If you want to find a great place to flee to that doesn't tax go to Cayman!

Before escaping the US, you should know about this story. This Russian had US citizenship, but he did not understand the consequences.

Former Tinkoff owner Oleg Tinkov convicted of tax fraud and fined over $500 million
https://www.cyclingweekly.com/news/former-tinkoff-owner-oleg-tinkov-convicted-of-tax-fraud-and-fined-over-dollar500-million

US citizens now probably have the most difficult situation with taxes and, according to their law, tax crimes have no statute of limitations.

[Fiatless]

All the best Americans! US is going to bring down the crypto market on their soil through useless regulations and punitive actions if not complied. From the actions of IRS and various other regulatory bodies, it is very clear that US government is seeing cryptocurrency as a threat.

If you are holding your life savings in Bitcoin, move to Singapore and live a happy life!

Dear Americans I think you are faced with two options here, either comply with the new crypto tax law as a patriotic citizen of the United States, or, if you believe your rights are being violated then follow in the footsteps of your forefathers. Seek out places with greater opportunities, with lower taxes and fewer obstacles in establishing and conducting businesses that have the potential to make a global impact. If you contemplating potential destinations, Avikz has already suggested Singapore, and I would like to add Australia, Dubai, El Salvador, and Argentina to the list.

I think the American crypto community also have the court as another option. Americans can challenge this law in court and it could be overturned. There are several instances where people challenge the laws enacted by the legislature and it turns out to favour them. According to the reference the OP gave a non-profit research and advocacy organisation named Coin Center has started a legal procedure to change this law. Since the case is still ongoing, people have to comply until the final judgement.

Relocating to another country is not that easy especially if your major income doesn't come from cryptocurrency. I doubt any country will have the kind of opportunity the US has, so moving to another country might be very discouraging. Using decentralised mediums or platforms to engage in crypto transactions will be the best option.