My understanding is that Blockchain in crypto stores each transaction in the blockchain as the crypto is transferred in ownership (holdership?). Anyway, if they cracked the encryption it may be possible for the IRS to have associated back to this person transactions occurring in 2014 or earlier.
Also, I do not believe (again going on memory) that crypto like BTC was classified as anything back then from the government / IRS perspective. That being the case, the classification in recent years has been retroactively applied and the law or regulation that didn't exist then is now applied back to that time.
I do believe that would run afoul of any legitimate court system, but the IRS gets to try their cases in a special court and legitimacy and actually following the law isn't really a concern there in my opinion.
Bitcoin was classified as an asset Jan 1 of 2014, the IRS started treating it as commodities under the U.S. Commodity Exchange Act.
I know because I temporarily moved to Ireland in 2014 for business and the IRS sent me a letter saying that they were going to tally up my personal property and make me pay taxes on it like I sold everything. I had to send them proof that I was retaining my citizenship.
They sent me line items of my major property holdings and assets. One of them was a line item for my bitcoin I'd bought on a whim a while before when it cost almost nothing.
They wanted to tax me the value in 2014 for the 250 bitcoin I owned. They valued it at around $80-90k and wanted me to pay 30% on that in tax.
No, but I asked that question very early in the process and they said they could provide that information, but since I didn't give up citizenship I didn't have to go down that route.
That's not how that works. BTC is perfectly traceable and the transactions in question were done at exchanges that already had his ID. This is about him operating his businesses using BTC for years and then when he left the US he sold them for USD and moved it to a foreign bank account. That's what they say he didn't pay tax on because he didn't declare his BTC holdings.
My understanding is that Blockchain in crypto stores each transaction in the blockchain as the crypto is transferred in ownership (holdership?). Anyway, if they cracked the encryption it may be possible for the IRS to have associated back to this person transactions occurring in 2014 or earlier.
Also, I do not believe (again going on memory) that crypto like BTC was classified as anything back then from the government / IRS perspective. That being the case, the classification in recent years has been retroactively applied and the law or regulation that didn't exist then is now applied back to that time.
I do believe that would run afoul of any legitimate court system, but the IRS gets to try their cases in a special court and legitimacy and actually following the law isn't really a concern there in my opinion.
Bitcoin was classified as an asset Jan 1 of 2014, the IRS started treating it as commodities under the U.S. Commodity Exchange Act.
I know because I temporarily moved to Ireland in 2014 for business and the IRS sent me a letter saying that they were going to tally up my personal property and make me pay taxes on it like I sold everything. I had to send them proof that I was retaining my citizenship.
They sent me line items of my major property holdings and assets. One of them was a line item for my bitcoin I'd bought on a whim a while before when it cost almost nothing.
They wanted to tax me the value in 2014 for the 250 bitcoin I owned. They valued it at around $80-90k and wanted me to pay 30% on that in tax.
Understanding that you proved citizenship and didn't have to fight every line item, but did they ever provide backup for their valuation?
No, but I asked that question very early in the process and they said they could provide that information, but since I didn't give up citizenship I didn't have to go down that route.
Thanks for clarifying.
Glad you didn't end up having to pay the taxes on everything they claimed you owed.
That's not how that works. BTC is perfectly traceable and the transactions in question were done at exchanges that already had his ID. This is about him operating his businesses using BTC for years and then when he left the US he sold them for USD and moved it to a foreign bank account. That's what they say he didn't pay tax on because he didn't declare his BTC holdings.
AI be God Hammer for the Thor's