Lets say i have 100 BTC and im looking for some USD. You have 10,000 USD that you are willing to trade. I launder my BTC, send them to you, and you hand me 10,000 USD.
You think im going to fill out a 1099 for this? you have to be out of your f*&$ing mind. If you sit there and fill out a 1099 and willingly give your money to someone whos trying to extort money from you, you belong in line at the slaughterhouse.
You think im going to fill out a 1099 for this? you have to be out of your f*&$ing mind. If you sit there and fill out a 1099 and willingly give your money to someone whos trying to extort money from you, you belong in line at the slaughterhouse.
Likely would not get caught
Unless FINCEN starts planting people like they do to drug dealers for bitcoin
http://www.forbes.com/sites/robertwood/2013/05/02/irs-takes-a-bite-out-of-bitcoin/
The IRS already gets a piece where you swap one product or service for another, as the IRS explains at its Bartering Tax Center. Soon the IRS may have a Bitcoin Center too. The Treasury unit called FinCEN, the Financial Crimes Enforcement Network, already has rules about Bitcoin and the IRS is likely to follow.
Although they care about the big ones like you got a Ferrari bought a million dollar house and only declared 50,000 in income and are 22.
IRS takes a bite out of bitcoin. really? where? Thats a bunch of Bla Bla Bla because they cant enforce it unless you are a moron.
I send you 10 BTC: it comes from HAHAHAHAHAHAHAHAHAAHAHAHHAAHAHAHAHAH and it goes to HEHEHHEHEHEHEHEHEEHEHEHEHEHEHHE
Neither me nor you traded anything. the wallets held the bitcoin the entire time. it could have been me that sent that BTC or it could have been my grandmother. and who did the BTC make richer? HEHEHEHEHEHEHEHEHEEHEHEHEHE is not a person. Unless you throw IRS parties at your house, nobody is ever going to know you now have a bad ass flat screen tv in your living room.
What if 500 people share 1 wallet? What, are they going to tax the computer?
Most definitely you wouldn't get caught unless you're a good little slave and declare everything you have to the IRS. If you make yourself stand out like that then you brought it upon yourself and the state is coming to steal your property.
My bet is, something is going to blow up or some mass murder is going to occur where they will say that all weapons, or whatever, were purchased from silk road or some other awesome free market with bitcoins. There's the excuse. only a matter of time. haven't you noticed that everyone associated with bitcoins is a "hacker" now??