Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

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Still have tax due in a few days...

How does the US tax system work? Does a business pay at the start of the new year, and citizens pay in April?

You can file to extend documentation to October, if you want, as long as you paid 100% in April.
Corp: by the 15th day of the third month following the tax year (March 15 for calendar year).
LLCs-flowthrough to individual tax if single member, then there are franchise taxes (TX-in May).
Last year I had to pay a bit, then they hammered me with high estimated payments and now it looks like I overpaid.
Impossible to get it right (either you have paid too much or too little almost every time).

I seem to remember people blaming early January bitcoin dumps on miners/traders having to sell to pay US taxes. Is that bullshit?

Not entirely because if you made sweet gains or mined lots of btc, especially at higher prices by the end of the year (as it happens frequently), then you might want to sell enough to fulfill your tax obligation (at least for estimated taxes) that come mid January. If you had a large realized gain (or income), but then if you carry it to April, you would incur penalties and/or be unable to pay the tax at all. Example: gained $100 in Dec, need to pay $25 in April, but your btc declined to $20. You are out of luck: have to pay, but funds are insufficient.