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Bitcoin, Forbes ("IRS knows what's going on)

Technical topics regarding tax preparation.
#1
Bob A  
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FLA
https://www.forbes.com/sites/hanktucker ... da139d1ad1

Anyone know where I can access CE's? :) (seems like one to get ahead of)
 

#2
Nilodop  
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11345
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Location:
Pennsylvania
General education, not tax-specific. 'Wharton offers free course in new finance' at https://digital.olivesoftware.com/Olive ... &mode=text
 

#3

#4
makbo  
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District 13
"“more than 14,000 Coinbase users have either bought, sold, sent or received at least $20,000 worth of bitcoin in a given year," but only about 800 taxpayers reported gains. The IRS is trying to get that number closer to reality "

Hmm. "bought, sold, sent, or received". Which of those is a taxable transaction? How do they know what "reality" is?

"outreach events like EisnerAmper’s panel and urging voluntary compliance, but Alford warned that if the IRS can prove that a taxpayer willfully concealed cryptocurrency gains, they might be subject to prosecution."

Isn't this the same approach they take to people who make business payments in cash "under the table"? What's the success rate for that?
 

#5
Andrew  
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Location:
CA
From the Forbes article
"Alford warned that if the IRS can prove that a taxpayer willfully concealed cryptocurrency gains, they might be subject to prosecution. Ignorance of the law is not a good enough excuse, he says, especially if there are records that they kept a spreadsheet of their investments or discussed cryptocurrencies with their accountant."

Especially if they kept records? So if a taxpayer doesn't keep records, they're less culpable of not knowing the law? Interesting point of view by an IRS agent.

From the article: “You might have bitcoin on everything, but when you go to your accountant, you say, ‘Oh, I’ve never heard of bitcoin.’ Really? Every date you’ve ever been on, that’s all you talked about was bitcoin, but somehow when your accountant asks you, you forgot to talk about it?” Alford says. “That’s our burden to show this individual knew.”

And how is he going to show that the individual knew about Bitcoin? Is he implying the IRS will start listening in on taxpayers' conversations while on a date?

Maybe when the IRS stops advertising their low audit rates, voluntary compliance will increase.
 

#6
Andrew  
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85
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21-Nov-2018 5:00pm
Location:
CA
So sad that Forbes used this article to garner readership attention. Sad too, but not for non-compliant taxpayers. All they have to fear is "having records of Bitcoin transactions" according to Alford or talking about "Bitcoin while on a date", again according to Alford.Talking to your accountant about anything is a no-no because accountants do not have attorney-client privilege. Thank you, IRS, for putting tax preparers in the position of auditor because this is how you save on money because now you do not have to pay for your own auditors. Tax preparers, however, as said, are not paid to be IRS auditors but are put in that unfortunate position if they're not asking enough questions to the tax payer. Unfortunately, the IRS keeps advertising low audit rates and knowingly and willingly undermines taxpayer voluntary compliance to tax laws because of their own compliance undermining advertisements. "Really? Every date you've ever been on, you talked about low audit rates, that's all you talked about was low audit rates, but somehow when someone cheats, you forgot you talked about that" Through savvy tax rules the IRS shifts the responsibility of IRS auditor to that of the tax preparer, of course it saves the IRS a whopping amount in salaries, while baiting non-compliance of taxpayers by advertising low audit rates.
 


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