Timeline for Can one avoid paying US income tax by being paid in Bitcoin?
Current License: CC BY-SA 3.0
20 events
| when toggle format | what | by | license | comment | |
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| Nov 28, 2017 at 14:45 | comment | added | ohwilleke | @Wildcard "I have a suspicion that has never been tested in court." All questions even remotely related to tax payment have been tested in court. | |
| Nov 28, 2017 at 13:46 | comment | added | Sreeraj Chundayil | "You would have to pay taxes even if you were paid in goats." :) | |
| Nov 28, 2017 at 9:49 | comment | added | PlasmaHH | The more interesting question that arises here is: are you then allowed to also pay your taxes in goats? | |
| Nov 28, 2017 at 9:08 | comment | added | Wildcard | @ohwilleke, I have a suspicion that has never been tested in court. The IRS can make up whatever rules it likes—and does. Whether someone can actually be arrested and successfully prosecuted if they refuse to attempt tax payment in any other way than via cash is another question. On that note, read the first couple pages of Robert Heinlein's "Have Space Suit — Will Travel" for a laugh. (Highly relevant, and viewable through "look inside.") ;) | |
| Nov 28, 2017 at 3:20 | comment | added | ohwilleke | @RyanCavanaugh Thousands of people in the legal marijuana industry have hundreds of thousands of dollars in tax liabilities each but have to deal in cash because they aren't allowed to set up bank accounts. It has nothing to do with being highly impoverished, but does have a lot to do with being unbanked. An arbitrary $1,000 a day limit is a huge problem for them. Also, FWIW, the IRS does not in fact accept goats as legal tender, nor do Idaho's tax collectors (unless they are foreclosing on tax liens, in which case both accept them). | |
| Nov 28, 2017 at 2:02 | comment | added | Ryan Cavanaugh | The IRS accepts cash (subject to a $1,000/day limit). See irs.gov/newsroom/irs-offers-new-cash-payment-option . If you're impoverished it's highly unlikely you have a $1,000 tax bill anyway. | |
| Nov 27, 2017 at 23:51 | comment | added | Harper - Reinstate Monica | @ohwilleke wait, the notes say "all debts, public and private"... How do poverty-suffering unbanked people pay their taxes? | |
| Nov 27, 2017 at 22:27 | comment | added | ohwilleke | @BlueDogRanch The former. Banks aren't allowed to deal with money that they know to be marijuana money under federal law. | |
| Nov 27, 2017 at 22:17 | comment | added | BlueDogRanch | @ohwilleke interesting; is that because banks don't want to deal with the businesses and their cash re: federal law; or the businesses don't want to deal with the banks and get a bank draft or check to send to the IRS? | |
| Nov 27, 2017 at 22:08 | history | edited | ohwilleke | CC BY-SA 3.0 |
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| Nov 27, 2017 at 22:08 | comment | added | ohwilleke | @BlueDogRanch It turns out that you can't actually even pay your taxes in large amounts of currency and dealing with the problem is a big issue for my clients in the legal marijuana business. | |
| Nov 27, 2017 at 22:01 | comment | added | ohwilleke | @Bakuriu FWIW, the goat example isn't as far from reality as you would think. I have been paid for services as a lawyer in my own private practice in the 21st century in Colorado, in livestock (pre-slaughtered thank goodness) and yes, I did report it on my tax return for the year. (It was the year of the crash in 2008, and none of my clients had a lot of cash on hand to pay me.) | |
| Nov 27, 2017 at 21:54 | comment | added | BlueDogRanch | Sure you can pay taxes in goats; if you're in a country that accepts goats as legal tender for paying taxes. | |
| Nov 27, 2017 at 21:33 | comment | added | cHao | @Bakuriu: You don't pay taxes in goats. You pay taxes in cash based on the fair market value of a goat. | |
| Nov 27, 2017 at 21:33 | comment | added | dave_thompson_085 | Some but not all payers are required to file information reports; however you are liable for income tax on income (including profit from a trade or business) received in cryptocurrency the same as for anything else of value, plus self-employment tax on income or profit from self-employment, regardless of whether there was an information report. | |
| Nov 27, 2017 at 21:33 | comment | added | JAB | @Bakuriu The goats have some monetary value and you have to pay an amount of money related to that value. | |
| Nov 27, 2017 at 21:06 | comment | added | Bakuriu | How does paying taxes in goat work? Could you expand on that? | |
| Nov 27, 2017 at 19:46 | comment | added | Digital fire | Here is the IRS Virtual Currency guidance; irs.gov/newsroom/irs-virtual-currency-guidance & more detail; irs.gov/pub/irs-drop/n-14-21.pdf. "For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency." | |
| Nov 27, 2017 at 18:52 | vote | accept | mcchucklezz | ||
| Nov 27, 2017 at 18:10 | history | answered | ohwilleke | CC BY-SA 3.0 |