IRS goes after cryptocurrency investors | CMI Gold & Silver
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IRS goes after cryptocurrency investors

Cryptocurrency advocates have long maintained that the primary benefit of “cryptos” is that they are not centrally controlled, actually residing on cell phones.  Transfers from one holder to another do not go through a “central bank,” such as the Fed, but from one phone to another.  This was supposed to be beyond the reach of the government.  No longer.

According to the Wall Street Journal, in March 2018 Coinbase, a cryptocurrency exchange domiciled in San Francisco, CA, provided data – under a federal court order – on about 13,000 accounts to the IRS.  The exchange turned over data on customers who bought sold, sent or received digital currency worth $20,000 or more between 2013 and 2015.  The data included the customers’ names, taxpayer ID numbers, birth dates and addresses, plus account statements and the names of  counterparties.

Three versions of letters were supposedly sent to the persons whose data was obtained from Coinbase.  The sternest asked recipients to sign a statement declaring, under penalty of  perjury, that they are in compliance with tax laws.
Insomuch as there is no explicit requirement that cryptocurrency sales be reported to the IRS, this will put recipients of this letter in a difficult position.

Crypto advocates further assert that there are limits on the number of “coins” that can be issued, unlike the dollar, which the Fed can now create in unlimited quantities. However, what they fail to mention is that there are no limits on the number of cryptos that can be launched.  Bitcoin, which was the first, is the best known.

4 Responses to “IRS goes after cryptocurrency investors”

  1. John. Agront

    In. Reality- what. “Value” does. Crypto. Coins. “Hold” when. One. Cant. Really. See. Or. Touch. It? An. Issued. Coin. Of. Gold. Or. Silver. Has. Value- even. After. A. 3rd. World. War. Or. Depression. Monetary. Issued. Dollar. Bills. Or. Crypto. Coins. Donot!

    Reply
  2. DANIEL K SMYTH

    In addition to physical asset, gold or silver bullion, crypto is simply dependent upon internet access. For those without electricity, (Power grid down), or internet access because their ISP is down, are not able to access their accounts. In addition no one knows if there is hidden back door into the software that would allow some unscrupulous actor to steal your money.

    Reply
  3. Michael Brown, MBA Finance

    This is true, when the next big fall in society occurs there’s a good chance all forms of currency could lose its value. However, with the direction of the global economy and unprecedented growth in the human belief that ‘life only exists on our electronic devices’ it would be insane not to partake in this new monetary format.

    Outside of the obvious demand for cryptocurrency, I will always keep my stash of gold, platinum, silver, copper, and precious stones secured with more guns and ammunition than I could ever use.

    Investing in your future needs to be spread out because we can’t know what will happen tomorrow. So vote for your desired political party and invest in the cryptocurrency of your choice. Just be sure to invest some precious metals and your doomsday kit. Be ready for what world changing event will happen next, you and your family deserve to be safe.

    #disabled veteran, #financial planner, #realist, #eagle scout, #COMMON SENCE

    Reply
    • Bill Haynes

      I’ve yet to make my first buy of any cryptocurrency. Gold and silver have a six thousand year history of being valued in all civilizations. Bitcoin, the first and therefore the oldest crypto, has a ten year history. While some speculators have profited from crypto purchases, I’ve read that 1,000 “addresses” own 90% of Bitcoin.

      Reply

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