Quote from: TheMage on October 11, 2014, 04:40:29 AM

Quote from: fumanchu808 on October 11, 2014, 12:08:03 AM

Quote from: benthach on October 10, 2014, 07:47:50 PM

JL777 running ponzi scams and chance he's don't pay a penny in taxes
he can also running many illegal activities.
if you tip information to irs to where his about chance you would collecting the big reward for almost his assets

It's a bit presumptuous to automatically assume he's not paying his taxes. It's also presumptuous that the IRS would have jurisdiction over him.

What if he's operating out of Panama, Belgium, Malaysia, New Zealand, Belize, or Hong Kong? None of them have capital gains tax meaning he'd have nothing to report anyway. Assuming that someone is dishonest because they choose to protect themselves with anonymity is again, presumptuous.

I remain open to being proved wrong but for now he's the clear king of the digital asset space.

Playing devils advocate, as far as I know only the IRS has tagged it as property as opposed to money. Meaning those other countries could expect income tax instead of capital gains.

But I do agree with you on the rest.

Generally income tax is the result of labor. At the very least it would be seen as revenue generated from a private enterprise (like owning a small business) at which point he would have deductions to balance out his gains.

Generally speaking you only owe taxes when you sell the asset though, otherwise you would be required to destroy the asset in order to pay said taxes (which is in noones best interest). So sure, he could SOMEDAY have a large tax liability but unless he converts to fiat he is essentially still holding the asset.