In summary:
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
If it all exceeded 1 million dollars , it is a safe bet to say that they have been doing it since a long time , see income tax might now always be reasonable but at the same time If you keep doing your part every year there is nothing to be afraid of.
What the government did shouldn't have been that weird for people , since now every wallet and exchange does have a KYC requirement , the government already records every step , therefore the more they would have waited :
1. The more would have been the interest
2. The price is actually not that bad right now
3. Legal charges would have been more harsh
4. If they have Investment in crypto I do think it is safe to say they they would have had other investments too , so they are actually not loosing much .
They should have just paid it every year , I do think the decision was fair .
At least they are not in the jail , see income tax is only implemented for the people who can afford to pay it , but people try to avoid it when they most easily can be done with it , plus there is no assurance that Bitcoins is going to give good returns in the upcoming year , we all know that we cannot be sure of anything.
*We are all being tracked*
Lets leave it at that .