IRS Seeks SFOX Customer Information in Cryptocurrency Tax Push (bloomberg.com) 13
The Internal Revenue Service is seeking to identify customers of cryptocurrency prime dealer SFOX as part of its efforts to force crypto investors to pay taxes on their holdings. Bloombeg reports: In court filings in New York and Los Angeles, the tax authority asked federal judges to let it serve summonses on SFOX and M.Y. Safra Bank, which partnered with SFOX in 2019 to offer its customers cash deposit accounts backed by the Federal Deposit Insurance Corporation. The IRS is seeking account and transaction records for users with cryptocurrency transactions over $20,000 in any year from 2016 to 2021. "Transactions in cryptocurrency have grown substantially in recent years, and the IRS is concerned that taxpayers are not properly reporting these transactions on their tax returns," a lawyer for the government said in court papers filed Monday in Los Angeles. Meanwhile, according to Bloomberg (paywalled), the FTC is "investigating the operators of the BitMart cryptocurrency exchange over a December 2021 hack that led to consumer losses between $150 million and $200 million -- marking the agency's first known probe into crypto markets."
this is an message from the IRS about your crypto (Score:2)
this is an message from the IRS about your crypto
Color me surprised (Score:1)
Re: (Score:2)
The IRS want their slice of revenue. It's kinda in their name, ya know...
Why should it be tax-free if you make money by watching a machine do its magic and taxed when you actually to work?
Re: (Score:1)
And you don't want to pay your share of the taxes. Right. You're like that restaurant owner who is AGIN' GUMMINT, and who does it all himself... ignoring that he's on a tax-paid public road, with public electricity, and buys tax-paid government inspected food, etc, etc.
It comes down to YOU want to raise MY taxes, freeloader.
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Money only changes hands because of gifting and bartering, and both of those are taxable in some situations and not others, so the government has a clear interest in monitoring transactions.
The People have valid and invalid reasons both to accept and to reject this monitoring.
The tax man cometh (Score:1)
Cryptocurrency has hell to pay for the massive waste of resources that is crypto mining. Just look at it as the externalized costs finally coming home to roost.
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Crypto is also taxable when it's bought. Every single crypto transaction is a taxable event according to the IRS.
Tracking crypto is a big reason for those 87k new IRS agents.
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Re:holdings? some will be carrying guns (Score:2)
https://pbs.twimg.com/media/FZ... [twimg.com]
The IRS is hiring new special agents!
Requirements include working min “50 hours per week, which may include irregular hours, and be on-call 24/7, including holidays and weekends” and “Carry a firearm and be willing to use deadly force, if necessary.”