Warning to USA Bitcoin Traders
IRS Cashes in on Bitcoin Boom
By - Simon Black
What happened:
Have you made money on Bitcoin? Did you give the IRS their cut?
Here is another reason to hold Bitcoin long term, instead of treating it as a speculation. If you sold your Bitcoin high, and made some cash, the IRS considers that capital gains.
And they most likely know who you are.
The IRS is now actively seeking those who made money on Bitcoin and did not report the gains to the IRS.
They used a “John Doe summons” to collect all records from the Bitcoin trading website Coinbase.
In the past, the IRS used the same methods to bully Swiss banks into revealing American account holders.
What this means:
How is this type of summons legal? Isn’t the government supposed to abide by the Fourth Amendment, and describe particular things to be searched and seized? This is broad dragnet investigation into personal documents or “papers.”
Since the 16th amendment created the income tax, Americans have put up with yearly investigations into their finances that completely trample the Fourth Amendment.
Just because the government says it is legal to tax income, suddenly the right to be secure in your person, houses, papers, and effects goes out the window.
What happened:
Have you made money on Bitcoin? Did you give the IRS their cut?
Here is another reason to hold Bitcoin long term, instead of treating it as a speculation. If you sold your Bitcoin high, and made some cash, the IRS considers that capital gains.
And they most likely know who you are.
The IRS is now actively seeking those who made money on Bitcoin and did not report the gains to the IRS.
They used a “John Doe summons” to collect all records from the Bitcoin trading website Coinbase.
In the past, the IRS used the same methods to bully Swiss banks into revealing American account holders.
What this means:
How is this type of summons legal? Isn’t the government supposed to abide by the Fourth Amendment, and describe particular things to be searched and seized? This is broad dragnet investigation into personal documents or “papers.”
Since the 16th amendment created the income tax, Americans have put up with yearly investigations into their finances that completely trample the Fourth Amendment.
Just because the government says it is legal to tax income, suddenly the right to be secure in your person, houses, papers, and effects goes out the window.
==================
Editor's Note: As we begin to see crypto currencies trash the USD we'll also be seeing more frenetic attempts to disrupt this trend by the central bankers and their minions in government. Taxation, attempted regulation, distraint, attempted market disruptions, hack attacks and the like are all in the bag of tricks for the central bankers who are losing control and are desperate.
For this reason, among others, we have our own private banking solutions to protect you from a majority of these tyrannical outbursts and attacks. For more on that, Click Here to get more on our Private Asset Management System (PAMS)
For this reason, among others, we have our own private banking solutions to protect you from a majority of these tyrannical outbursts and attacks. For more on that, Click Here to get more on our Private Asset Management System (PAMS)
==================