IRS to Build Tax Evasion Cases

The U.S. Internal Revenue Service has begun preparations to bring down the hammer on Bitcoin tax cheats  
09 February 2018   873

US residents have two more months to submit their annual federal tax returns. The Internal Revenue Service will treat very harshly Bitcoin tax cheats.

The agency has assigned a team of elite criminal agents to investigate whether Bitcoin and other cryptocurrencies are being used to cheat the taxman.

According to IRS chief Don Fort, it’s possible to use Bitcoin and other cryptocurrencies in the same way as foreign bank accounts to facilitate tax evasion. He also informed that the agency hasn’t charged anyone yet, but the cases will come. Under current US law, cryptocurrency owners are required to pay taxes on profits realized from any cryptocurrency transaction. It is clear that if you have realized profits from cryptocurrency investments, you will have to pay taxes.

This new technology is a big challenge for the IRS, they need to educate themselves on what is a blockchain. The agency lost its key staffers since 2011 on account of budget cuts. This team will help the agency to return its full strength, complete with its own crew of blockchain experts.

There are three so-called types of bitcoiner: 1) those intending to pay, 2) those hoping the IRS will not hunt them, because there are bigger “fish to fry”, 3) those willing not to pay. They even ready for moving to Puerto Rico. Of course, days of wide-scale cryptocurrency tax avoidance are almost in the past.

SEC to Need More Info on BTC ETF

SEC is gathering more input from the public – to date, according to the agency, more than 1,400 comments have been submitted
21 September 2018   183

The US Securities and Exchange Commission (SEC) announced the beginning of a formal process for considering the application for the creation of bitcoin-ETF from the New York companies VanEck and SolidX. Nevertheless, the agency appealed to the community for more information. This is stated in the document published on the SEC website.

Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.

The US Securities and Exchange Commission

At the moment, the SEC received about 1,400 comments.

According to the document, the Chicago Board Options Exchange (CBOE) has signed an agreement on the exchange of data on bitcoin transactions, trading and the state of the market with the cryptocurrency trading platform with Gemini.

The agency asked commentators to clarify the position of Gemini in the digital currency market and assess the likelihood of increased volatility at this site in connection with possible trades of bitcoin-ETF.

So, before September 30, the department had to decide on whether to approve, deny or initiate the proceedings. The SEC chose the latter, which is likely to delay the process until the next year.