Bitcoin exchange processor likely to fight IRS summons

[dealmaker]

Customer Sues IRS to Halt Probe of Coinbase Bitcoin Accounts

http://fortune.com/2016/12/15/coinbase-irs/

 

[m1nt]

So basically you are rolling the dice and hoping the IRS doesn't inspect your bitcoin or altcoin activities. That is a viable strategy, but it is not how I choose to run my finances. The problem with bitcoin (in terms of taxes), is that it is not easy to keep track of all your transactions properly.

So basically you are rolling the dice and hoping the IRS doesn't inspect your bitcoin or altcoin activities. That is a viable strategy, but it is not how I choose to run my finances. The problem with bitcoin (in terms of taxes), is that it is not easy to keep track of all your transactions properly.

Here's the deal. I cashed out basically what was invested and traceable and reported it. I have lots of mickey mouse transactions that went unreported. Stuff like using bitcoin to buy a $200 watch. None of it was in anyway illicit. I feel no need to report those transactions. If the IRS comes after me for those, it is highly likely the accountant preparation fees will be far higher than any penalties if it even comes to that. Due to the technical features of BTC, it is doubtful the IRS can say what I did in a court of law if the coins are being moved to totally anonymous wallets. Want my computers (of course it would never come to that)? Sorry, they crashed -- blue screen of death -- and were recycled.

 

[sprstpd]

I have lots of mickey mouse transactions that went unreported. Stuff like using bitcoin to buy a $200 watch. None of it was in anyway illicit. I feel no need to report those transactions.

Yep, I totally get it. If it were me I would end up writing a computer program to track all my bitcoin transactions and automatically spit out a tax form. But that's just because I'm anal about that type of thing.

 

[Cuddles]

It wouldn't surprise me if the influence of financial institutions of the upcoming presidency would exert extra pressure to pass legislation to clamp down on crypto coins via IRS. It threatens their coffers and traditional investment vehicles.