Post
Topic
Board Legal
Re: Bitcoins and Tax
by
The00Dustin
on 25/09/2017, 12:13:27 UTC
I can't understand how the IRS determines that your bitcoins are in the US? They can track only those dollars which are credited to your account. As far as I know the United States still do not recognize bitcoin currency. This means that your savings in bitcoin can not be considered income.
The US is one of few countries where dual citizens must pay dual taxes regardless of their primary residence location.  That is to say that US citizens must pay the same US taxes on their income regardless of where it came from and/or where it resides.  If there is an exception to that, it would likely be one where taxes where higher when money/income were not in the US.  They also have plenty of other ways to track your income, for instance, any US-based exchange and likely any exchange in any in any of the fourteen eyes countries.  Even trading outside of that jurisdiction doesn't guarantee they won't know, for instance, see the btc-e.com takeover landing page, where the IRS logo is present amongst other US LEA logos.