Coinfirm should be able to track IP to masternode address to how many rewards each masternode gets to where it is spent. At that point, any law that comes into play can force a warrant to get the user of an IP address and file criminal charges....tax evasion, mixing(laundering), money transmitter, not declaring crypto holdings over xxxx amount. The law may not exist now, but the blockchain is forever so expect retroactive enforcement. Ironically, it would be a piece of cake for the Fed to go after Dash "criminals". What about mixing? Feds can just declare mixed coins laundered too.
There is a solution. It is called IP blinding.
"tax evasion, mixing(laundering), money transmitter, not declaring crypto holdings over xxxx amount."
these problems are not unique to DASH, all crypto are susceptible, at least for the 3 year irs statute of limitation (so no, not forever). masternodes don't come into possession of coins so mark mixing and money transmitter off the list too.
No, actually Dash is uniquely susceptible. Masternode IPs are required to be static and public. They also require collateral stored in an address. No other currency (besides Dash clones) links a public address with funds and rewards to the IP address.
The 3 year limitation is only if you want to get a refund back. If the IRS finds that you owe money, there is a 10 year limitation.
my ip is not linked/associated with my masternodes (ran by a 3rd party in different country). i am not trying to avoid the irs anyway. there was a paper published recently about how to hide masternodes but it was over my head. vertoe even surfaced to check it out, i'm sure you saw it.
Edit: here it is...
Security-Privacy-Centric Solution For Anonymous DASH (Masternode) Local Wallet Based On Debian GNU/Linux, VirtualBox, Whonix GNU/Linux Including Tor And Tails
VERSION 0.1.8 [2016-12-17]
https://dashpay.atlassian.net/wiki/display/DOC/Dash+Security-Privacy+Paper i want to be invested in a coin like dash/btc that is in compliance and plans to go mainstream not be regulated to the darknet. and like tok said, you have to move to fiat at some point, those choke points will catch up with you eventually if you are worried about hiding from the irs.
here is some good info if you are planning on avoiding taxes and trying to get away with it, i don't advise doing that...
How Far Back Can IRS Claim Tax Evasion Or Fraud? Timing Is Everything
http://www.forbes.com/sites/robertwood/2013/10/13/how-far-back-can-irs-claim-tax-evasion-or-fraud-timing-is-everything/#1c1f03be53ffAnybody who thinks Dash is going to grow to mainstream adoption without working cooperatively with authorities on compliance and regulation is living in a dreamworld.
Taxation is a fact of life in a civilized world, yet it sounds like some on here believe that Dash should be capable of providing effective means to evade tax liabilities, or worse, develop such a feature as a selling point for Dash?
Dash will be dead in the water if we try to make an enemy of the state.