The interesting thing about this is? It was legalized as a alternate CURRENCY and not PROPERTY! One now has to wonder what kind of fallout this will have on the IRS?As we all know the IRS declared Bitcoin as Property on a RULING? Which is not LAW and backed by NOTHING! They have nothing to stand on!
The IRS has NO LAW to back this assessment on!Nor does the IRS have the power too ever make LAW or interpret Law on a FEDERAL or STATE level!! LAW must be WRITTEN and SIGNED into order by STATE or STATE'S and CONGRESS!This is good news for Californian's too tell the IRS too FUCK OFF! Because they have a written and signed LAW which trumps a RULING! Which isn't a written and signed LAW and backed by no CONGRESS or STATE
This is mostly correct. And also extremely important. The IRS works for the people. The people tell the IRS what to do. The people do this by way of their elected officials. The IRS must administer the tax code as the people authorize them to do that.
This first law (there will be more) tells the IRS how to act. They can't act one what they want to do, but they must act on what the law tells them to do. Their rules are no more than 'suggestions' and 'guidelines'. The first time someone challenges their notion of how to treat bitcoin in tax calculations, the COURT will set a precedent (in view of the written law - including the new one in California) and that will be the final rule. First, we need someone to challenge the IRS's bullshit rule. This takes time and can be expensive. However, someone will finally do it. Likely, this will occur only after the IRS tries to enforce their 'rule' against someone. Then, that person will have the opportunity to challenge the rule and let a judge hear the case to make a decision. If you don't want to be this person, then you probably should follow the IRS guidelines today. If you want to be this person, call the IRS to report yourself as not following their rules.
For me, I don't want to be that person. I'll wait until some brave person more durable than me will do it.
