Quote from: MinorError on March 26, 2014, 03:12:59 AM

Quote from: grkmec on March 26, 2014, 02:42:27 AM

how would IRS know what you mined?

For those of us who don't want to pay an insane amount of back taxes, maybe lose our home, or worse, end up in jail, let's pretend for the sake of argument that they do know how much you mined. Most miners are eventually going to change their bit coins to USD, and in that case, it will be very hard to cover up.

What I really don't understand is that no one seems to be talking about it on this forum.

i mine a good bit and even use them everyday. Not a single USD hits my bank account that comes from the exhange of crypto to dollars. There are services out there, in non reporting/taxing countries, that can give you a cash/gift card for bitcoins.

There are legal ways to minimize your tax footprint. Also remember you can declare expenses to deduct including the cost of the machine, electricity, internet, etc.

Factor in your expenses and i guarantee you wont hit over 10% on mining

so either mine for 10%-15% tax or work and get taxes about 40-50%

ya.....this is not bad news....at all for miners.