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IRS To Obtain Identities Of 14,355 Cryptocurrency Users

Goldhedge

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#1
IRS To Obtain Identities Of 14,355 Cryptocurrency Users
November 30, 2017 by admin


A court in California ordered a cryptocurrency exchange to hand over the identities of thousands of users this week to the Internal Revenue Service (IRS).

Coinbase, one of the internet’s most popular sites for selling and buying digital currencies such as Bitcoin, must give the federal government the names, birthdates, addresses and account activity of 14,355 users.

Although the IRS originally attempted to obtain records for every user on Coinbase, the year-long court battle ended with users who bought, sold, sent or received more than $20,000 worth of cryptocurrency being targeted.

The IRS argued that despite those nearly 15,000 users dealing in large qualities of cryptocurrency, only “800 to 900 taxpayers a year have electronically filed returns” mentioning digital currencies between 2013 and 2015.

Coinbase Co-Founder and CEO Brian Armstrong pushed back against the federal government’s inquiry in January prior to the ruling.

“Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of their privacy, and is not the best way for us to accomplish our mutual objective,” Armstrong wrote.

Following the ruling, Coinbase’s David Farmer stated the company was “proud to fight for our customers and in the result we were able to achieve as a small company against a large government agency.”

Coinbase has said it will inform any users prior to handing their information over to the IRS.

With Bitcoin surpassing $11,000 in value on Wednesday before sliding back down to $9,000, users of cryptocurrency are expecting the federal government to take a larger interest.

Read more





http://www.truth-news.com/2017/11/30/irs-to-obtain-identities-of-14355-cryptocurrency-users/
 

spinalcracker

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#2
Is this a badge of legitimacy that sends BTC to the moon?.....
Or the proverbial kiss of death?.....
My thought is that BTC must be worth something or the bootjack IRS would not come after it.

Edit: I wish my name was on that list.
I wonder if Max Keiser's name is in the Top 10?..
 

solarion

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#5
Is this a badge of legitimacy that sends BTC to the moon?.....
Or the proverbial kiss of death?.....
My thought is that BTC must be worth something or the bootjack IRS would not come after it.
Goobermint will continue to do as they've done almost since bitcoin's genesis. On the one hand they'll pretend they think bitcoin = property(for tax purposes) and on the other hand they'll pretend they think bitcoin = money(for purposes of closing down exchanges).

"Hey, peasant you need an official goobermint seal of approval to be a money transmitter!"

Kind of like how the individual mandate attached to obozocare is the incredible morphing tax, fee, penalty depending on the venue in question.
 

TRYNEIN

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#6
Hmmm, is there a way of declaring bitcoin as being denominated in USDs, not FRNs...



I'm not so sure it would, as ANY gain is legally & lawfully taxable


.............................................................................................................................................................

The Supreme Court has REPEATEDLY ruled that compensation for professional services is not "income":

In determining the definition of the word "income" thus arrived at, this court has consistently refused to enter into the refinements of lexicographers and economists and has approved, in the definitions quoted, what it believed to be the commonly understood meaning of the term ....



We continue entirely satisfied with that definition, and, since the fund here taxed was the amount realized from the sale of the stock in 1917, less the capital investment as determined by the trustee as of March 1, 1913, it is palpable that it was a "gain or profit" "produced by" or "derived from" that investment, and that it "proceeded," and was "severed" or rendered severable, from, by the sale for cash, and thereby became that "realized gain" which has been repeatedly declared to be taxable income ....
[Merchant's Loan & Trust v. Smietanka, 255 U.S. 509]



"Income" has been legally and officially defined:


And the definition of "income" approved by this Court is: "The gain derived from capital, from labor, or from both combined," provided it be understood to include profit gained through a sale or conversion of capital assets. ... It is thus very plain that the statute imposes the income tax on the proceeds of the sale of personal property to the extent only that gains are derived therefrom by the vendor ....
[Goodrich v. Edwards, 255 U.S. 527]



Income is nothing more nor less than realized gain .... It is not synonymous with receipts
.... Whatever may constitute income, therefore, must have the essential feature of gain to the recipient .... If there is no gain, there is no income.
[Conner v. U.S., 303 F.Supp. 1187]
 

EO 11110

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#8
neat how the skype redefined income to include WAGES, which are taxed at punitive rates. AND got real 'income' redefined as capital gains, which are taxed at favorable rates. third, they worked night and day to eliminate import tariffs and push the 'free trade' snake oil

through these actions they destroyed the american system and replaced it with the judeo-bolshevism friendly system
 

TRYNEIN

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#9
neat how the skype redefined income to include WAGES, which are taxed at punitive rates. AND got real 'income' redefined as capital gains, which are taxed at favorable rates. third, they worked night and day to eliminate import tariffs and push the 'free trade' snake oil

through these actions they destroyed the american system and replaced it with the judeo-bolshevism friendly system

Careful EO

“Income Tax” is merely deceptive language for a legitimate usage fee for the use of the private credit, or script, of the Federal Reserve System under contract law


 

anywoundedduck

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#10
Death knell.
The old soverign demands of government.
Taxes and death are the only two things you can count on.
Governments will demand transparency, when it is anonymity from government that gives Bitcoin any value more than zero.
Add this to the black hole theory.
Time to cash in boys and girls.
 

solarion

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#11
Death knell.
The old soverign demands of government.
Taxes and death are the only two things you can count on.
Governments will demand transparency, when it is anonymity from government that gives Bitcoin any value more than zero.
Add this to the black hole theory.
Time to cash in boys and girls.
lol You think coinbase matters THAT much? Lots of people wouldn't go within a light year of that place.

Wonder what happened to the silly notion that bitcoin must be a goobermint sponsored deception to trick everyone into using digital currencies? I mean, plenty of skeptics used to suggest that since the goobermint wasn't overtly attacking bitcoin that it must be evidence that they control it. Now that the US federal regime is overtly attacking it, surely it must increase its legitimacy in some ways...right?
 

Joe King

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#12
Wonder what happened to the silly notion that bitcoin must be a goobermint sponsored deception to trick everyone into using digital currencies? I mean, plenty of skeptics used to suggest that since the goobermint wasn't overtly attacking bitcoin that it must be evidence that they control it. Now that the US federal regime is overtly attacking it, surely it must increase its legitimacy in some ways...right?
Now it'll turn into a, "they have to attack it to throw people off of the idea that actually want people to use it", theory
 

gringott

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#13
This was telegraphed a while ago before the big ramp up in value.

They [IRS] aren't attacking bitcoin, they are looking to tax gains like any other investment.

Hence my liquidation of my tiny experimental ownership of bitcoin.

My personal opinion is this huge ramp up is about money escaping from one country to another, avoiding capital controls.
Some government must be cracking down on corruption, ill gotten gains, exporting of capital.
 

solarion

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#14
They [IRS] aren't attacking bitcoin, they are looking to tax gains like any other investment.
No they're directly attacking the personal privacy of people using a legal service. Coinbase users weren't required to comply with KYC dog vomit when it opened and now the federal regime wants to back up the truck and change the rules after the fact.

I mean, yes they want to steal gains they've no right to, but realistically this won't net squat for the federal regime...it's more about employing gestapo tactics to intimidate people than legitimized piracy.
 

gringott

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#15
No they're directly attacking the personal privacy of people using a legal service. Coinbase users weren't required to comply with KYC dog vomit when it opened and now the federal regime wants to back up the truck and change the rules after the fact.

I mean, yes they want to steal gains they've no right to, but realistically this won't net squat for the federal regime...it's more about employing gestapo tactics to intimidate people than legitimized piracy.
Every over the internet "electronic" investment I have is reported to the IRS and I have to pay taxes when appropriate. Seems the bitcoin slipped through the cracks, and now they [IRS] are fixing that. I don't think I should have to pay them for any investment, but taxing bitcoin gains makes just as much sense as taxing a ETF to me.
I don't believe they are taxing every purchase using bitcoin as a currency, they are taxing trading bitcoin for FRN transactions.
Please correct me if I am wrong.

Hell, they tax my winnings at the race track.
 

Joe King

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#16
I mean, yes they want to steal gains they've no right to,
That's the part that no one should like. Just because someone picked the right thing to buy shouldn't give them the Right to take any of it. The person who bought the thing was the one to assume all of the risk involved. If the price had tanked, it's not as though the gov would reimburse the loses. I mean they'd never do something like that, right?

If person A buys something from person B and then sells it to person C for a higher price, what did gov do in order to earn what it sees as its cut of the profit? Unless it is looked at as a gov granted privilege to be able to transact at all?
 

solarion

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#17
Please correct me if I am wrong.
I've no idea what they're taxing. Heck I can't even tell you what goobermint thinks a bitcoin is at this point...it seems to depend on which illegal branch of the federal regime you're interacting with.
Hell, they tax my winnings at the race track.
I know...it's a hoot. I jackpoted a slot machine once and had to fill out tax forms on the spot...like I was some kind of a criminal. Amazing that we've allowed our own goobermint to treat us like farm animals for so long.

 
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TRYNEIN

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#18
I've no idea what they're taxing.
They are taxing the GAIN you made with your investment.

If you bought, mined or found a BTC when it was at $100. and it has now grown to $10,000. you have a GAIN of $9,900....and that gain is taxable.

They did the same thing with my Mutual Funds, where I paid Cap Gains every year on profit I never saw, and when the funds crapped out and lost half of their value...I was f---ed. That's why I don't have them anymore.



Heck I can't even tell you what goobermint thinks a bitcoin is at this point...it seems to depend on which illegal branch of the federal regime you're interacting with.
To them, it's an investment.
One has to wonder if the Goobermint is the one running the price up so high just to entrap many people into Cap Gains owed....Nah...they would never do that...would they??

non-traceable assets

.

.
 
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Joe King

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#19
They are taxing the GAIN you made with your investment.

If you bought, mined or found a BTC when it was at $100. and it has now grown to $10,000. you have a GAIN of $9,900....and that gain is taxable.
What did they do to earn that cut?
 

TRYNEIN

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#22
What did they do to earn that cut?

1: Fought a revolution against the crown.
2: are you still a 'person'
3: do you still use private credit..FRN's
4:Taxes against GAINS have been legal since before the FedRes
 

TRYNEIN

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#24
True, but even the gov acknowledges that a Right cannot be taxed.

You don't have any rights, only what privileges your master gives you
You've traded your rights for benefits....like the use of FRN's

.........................................

The privileges and immunities clause of the 14th Amendment protects very few rights because it neither incorporates the Bill of Rights, nor protects all rights of individual citizens. Instead this provision protects only those rights peculiar to being a citizen of the federal government; it does not protect those rights which relate to state citizenship.”

Jones v. Temmer, 89 F. Supp 1226
 

Joe King

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#25
You don't have any rights, only what privileges your master gives you
You've traded your rights for benefits....like the use of FRN's
Which is the point I was getting at. Now, what steps were taken in order to trade ones Rights for said benefits of privilege?
 

TRYNEIN

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#26

solarion

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#27
PEOPLE or CITIZEN WHICH ONE ARE YOU?
...the one with all capitals in its name.

...hey I like frenchfries...er franchise.
 

nickndfl

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#29
Somebody in the Caribbean should set up an exchange that will trade accounts in cryptos for tangible gold and silver.
 

EO 11110

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#31
lol You think coinbase matters THAT much? Lots of people wouldn't go within a light year of that place.

Wonder what happened to the silly notion that bitcoin must be a goobermint sponsored deception to trick everyone into using digital currencies? I mean, plenty of skeptics used to suggest that since the goobermint wasn't overtly attacking bitcoin that it must be evidence that they control it. Now that the US federal regime is overtly attacking it, surely it must increase its legitimacy in some ways...right?
it is HIGH priority for frbny and its many franchises overseas. i've done many searches for 'central bank'. crypto concerns/strategies/studies come up A LOT
 

solarion

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#32
it is HIGH priority for frbny and its many franchises overseas. i've done many searches for 'central bank'. crypto concerns/strategies/studies come up A LOT
Oh don't get me wrong, I know the fed is after exchanges, they've been attacking bitcoin exchanges since there have been bitcoin exchanges...the list of closed down crypto exchanges is a mile long at this point. Their agenda is simple...stop the fiat leak to cryptos.

What I mean is, the writing was on the wall regarding this particular exchange long ago. Nearly all the early bitcoin pioneers abandoned that place long ago when they began to ask a ton of questions when you opened an account.
 

Uglytruth

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#33
With the huge run up in crypto's is it a more honest barometer of future inflation that what we are being told?
Dollar is going no where. So if crypto's set the new value standard when everything switches over & dollar is dumped prices will instantly go through the roof.
I mean lets just say Bitcoin at 10K "valuation". You want a cheeseburger and it's .0005 btc ($5). But what's bigger .0005 ($5) or .001 ($10)? Kinda like when you travel and use another currency it's hard to naturally understand the value when you are using monopoly money. Is this just a stick to get average people to move there so they can be herded like sheeple and fleeced? Lets face it 66% ain't got 1K so how much can they get?
I'm seeing very common people talking about getting some btc but they have no idea how.
 

Krag

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#34
This was sent to me by a site member. I reproduce it here without comment.



* * * * * * * * * * * * * * * * *
The risk with Bitcoin is that the government could simply change the definition of money. That is what they did to me back in 1980 because I was one of the three main market-makers in gold (perhaps the biggest). It was all a hunt for taxes, not concerning me but my clients. I have explained before why I retired from making markets in gold — the IRS declared me to be a BANK!

When gold was legalized in 1975 and began trading on the COMEX in New York, the New Jersey Senate asked me to write the law on gold to make sure it would not be taxable to buy and sell gold bullion. I worked with Senator Foran and developed the language that “gold was not taxable unless converted to use.”

I was making the market to buy gold scrap from all the stores you see with “WE BUY GOLD” signs. They buy the jewelry and it has to be refined. To do that, you needed a minimum lot of 100 ounces, which was the contract size on COMEX. When gold was $800, that meant one 100 ounce bar was valued at $80,000. The refining period was 6 weeks. Therefore, all of these small operations could not afford the float. If they bought 100 ounces per week, then they would need $560,000 in working capital. That would not work for most of these small shops buying gold.

I made the market. The shops could ship whatever they bought that day and I would buy it at the daily price. I gathered all the gold sold by countless stores. The gold was shipped by armored cars to Englehard for refining (PhiBro or Philipps Brothers who eventually bought Saloman Brothers). I was doing tens of millions per week back then and refined a mountain of gold.

First, the NJ tax authorities walked in and declared me to be a merchant. I said gold was not taxable unless converted to a usable product. They said their “interpretation” was that the “use” was investment. I refused to pay and opted for a trial. Of course, you do not get a jury, just a judge who rules always for the government. I was not allowed to testify at my own trial for they said whatever the Senate had asked me to write, I may have misinterpreted their intention. Senator Foran was so angry that he demanded to testify at my trial. The government objected and he was allowed to testify ONLY as a private individual citizen. I moved to subpoena the full Senate. The judge denied me, and I lost.

Simultaneously, the Feds walked in and declared me to be a BANK. They then declared that I had to file forms to report when my clients bought or sold more than $10,000. Their interpretation was that gold was NEVER formally declared not to be money in 1971, so I was a BANK.

They threatened me saying that the fine was $50,000 up to the full amount of every transaction I failed to report. They said they knew I perhaps did not “realize” I was a BANK and would forego the fines if I would allow them access to audit all my clients. I had no choice.

They set up shop in my office. I walked by, noticing that they were pulling out names of those whose transaction were even $5,000, and I asked what was going on. The agent turned to me and said very aggressively, “You have a problem, keep your mouth shut!” The next day in rolled the vans and they took all my business records and began an audit over 3,000 of my clients for the next three years.

That is why I retired. I neither wanted to collect sales taxes on bullion nor be a BANK and report on my clients. Since I was the biggest, they were starting with me. People doing business outside of New Jersey would not have the sales tax problem and the IRS was interested in me because of my size. They would not do the same for small shops. So it was time to get out of the business. Clients wanted the research to continue, so that was spun-off as a new company in 1981. Now comes Bitcoin. The Judiciary Committee of the United States Senate is currently working on Bill S.1241 that aims to criminalize deliberate concealment of property or the control of a financial account. The bill was submitted in June, and the law would change the definition of “financial account” and “financial institution,” and thus also cover digital currencies and digital exchanges.

Who is pushing it? None other than California’s Senator Dianne Feinstein, who maintains that the bill is needed to update existing money laundering laws because of terrorists.

This means that the miners of Bitcoin will become a “bank,” as I was declared. The operators of the trading platform Coinbase were forced by court ruling to notify the IRS of the identity of over 14,000 investors who were trading $20,000 in Bitcoin. Users were affected if their trading volume had exceeded $20,000 at the beginning of 2013 by the end of 2015.

So this is NOT a single transaction, but accumulative. The IRS will now “presume” tax evasion. This is what I warned would happen. Been there done that! They can shut down Bitcoin in the blink of an eye by simply defining anyone who is a miner to be a financial institution.

The bill will change the definition of “financial institution” in Section 53412 (a) of Title 31 , United States Code. The text will read: "An exhibitor, a redeemer or a cashier of prepaid access devices, digital currency or a digital exchanger or a digital currency.”

The regulation will remove the anonymity of Bitcoin and other cryptocurrencies defeating this idea that there is an alternative-financial-universe separate from government.