Re: Questions about ICO participation as a United States citizen
Well if you really want to be avoided by being audited by the IRS you mus include your earnings from the ICO In your income tax report. It could be classified as 2 kinds you can either make it as an income or you can put it as capital gains like in real estate and stocks. It is really up to you on which it can be tax lower. Hiding your true income is really a pain in the ass, so if you don't want to be bothered by the IRS you must be truthful.
A note to all the bros on the board:
You do know the IRS knows all of us, personally, and has been tracking our transactions for years at this point?
Sit down and let me rap to you
https://www.coindesk.com/irs-using-bitcoin-tracking-software-since-2015/
Quote
The Internal Revenue Service is using bitcoin transaction tracing tools developed by startup Chainalysis, according to a new report.
Documents obtained by Washington publication The Daily Beast show that the tax agency has been using the startup's software since 2015.
Additional data from the General Services Administration, which handles the US government's logistics, indicates that the IRS has an active contract with Chainalysis that is valid through the beginning of September. To date, the IRS has paid Chainalysis more than $88,000.
The IRS states in the documentation that it's using the software to "trace the movement of money through the bitcoin economy," going on to explain:
"This is necessary to identify and obtain evidence on individuals using bitcoin to either launder money or conceal income as part of tax fraud or other Federal crimes."
Documents obtained by Washington publication The Daily Beast show that the tax agency has been using the startup's software since 2015.
Additional data from the General Services Administration, which handles the US government's logistics, indicates that the IRS has an active contract with Chainalysis that is valid through the beginning of September. To date, the IRS has paid Chainalysis more than $88,000.
The IRS states in the documentation that it's using the software to "trace the movement of money through the bitcoin economy," going on to explain:
"This is necessary to identify and obtain evidence on individuals using bitcoin to either launder money or conceal income as part of tax fraud or other Federal crimes."
Yes. This is why the dark markets, and exchanges, have been getting run on by the LEOs so much lately. Besides this particular piece of software, understand that the NSA has every reason in the world to watch this forum, esp. the Legal and Politics subs. Assume that there is a file on you, and that if you have every publically posted an address under one of your avatars, it is associated with your real life persona. Unless you have newly minted coins on a paper wallet, or coins that are completely "isolated", the IRS already knows what you have. If you have enough, and convert it to fiat, they are simply waiting to garnish your value. Low hanging fruit arent worth it; there are multimillionaires among us. Thats worth climbing the tree for