"If you don't own the private keys to the wallet containing Bitcoins, you don't own Bitcoins."
Put your BTC in brain wallet. Tell IRS "I don't have the private keys to that address".
Impossible for them to legally prove you are the owner of those BTC.
You pay no taxes.
You pay no taxes as long as you don't use it to buy something, which is the same as not having any BTC.
nope imho according the initial guidelines of the IRS you 'mined' 4000 coins in 2009 at 2c each (or give them to your girlfriend of whatever..cash them out etc) you owe if you sold at 600 bucks 599.98 usd for each coin and it is retroactive to all coins and the value is at the time your bartered/gave away or sold them" ie 25% income tax on this 'gross income" and of course if you then sell them after 'mining them' whatever the coin makes (if held more then 1yr) would be charged 20% on any increase in value ..'capital gains tax"
i never thought bitcoin would have the same problems as a 'stripper' you make 500 bucks a nite you are supposed to give the IRS its 25% cut of the tips....you buy property with the income from stripping in 'las vegas" (the 75% remaining) and the property goes up 300 percent in a decade...you then pay 20% capital gains on the profits you held it
damn hard to be a currency under those conditions..
hard to enforce (everyone owning coin will say i did not mine it in 2009 i bought it..will be the mantra)..there we're years of no exchanges at that part of bitcoin history) assuming you would figure out what you paid on the handshake no idea etc back in the face to face days
and if you got a coin for 2c and it is now sold for 600 bucks the IRS will go huh? and probably audit you anyway!
so the btc in wallets "from back in the day" will be 'er no mr irs man....i purchased it..far sighted individual that i am...what is this mining you speak of?"
(assuming you let them know the blockchain address is yours and/or you did not have a fun holiday using BTC in Sweden or Canada etc
this has to be tweaked imho or btc can't be used easily as a currency and who will want to hold the btc 'property' if/when you can' t use it like currency in usa and/or being a miner would just be silly)
of course if you were a big money and big govt are in a handshake wink/wink use big money to stop btc
well ....er let me grab my 'tin foil hat"...you could have not wrote the words the IRS hath spoken in a manner
more needed for this 'supposed' plot
right now it is major FUD and this double tap is unenforceable imho...but it is still a mess (sigh...frigging primates")
my 2c worth
Searing