I already filed taxes and didn't report any of my 2017/2018 trades. Suppose we have a bullrun and I want to cash out 10-30k, how likely is this ploy to work after this summer:
Say I bought ETH in summer of 2017 and never sold.
Say I traded it for shitcoin x summer of this year (making my 'eth gains' longterm) and held shitcoin x for a year (shitcoin x is a coin cherry picked that I don't own which mooned) cash out around november 2018/early 2019 and claim I held that shitcoin for a year so all my gains are long term.
am a poorfag student in the lowest income bracket so cashout with no taxes to pay.
Question is: How risky is this (US gov) I risk other people doing this but this is the only place I can hope to get real advice
Actually for this to work I would have to cash out around summer 2019 (1 year for eth long term, 1 year for shitcoin long term)
Thoughts? will I get thrown in jail?
Adam Price
I wouldn't sweat it user. The IRS has been understaffed for over a decade. They don't have the resources to go after most people, especially crypto taxes.
Hudson Jackson
>Say I bought ETH in summer of 2017 and never sold.
this is when i bought most of my ETH as well. my plan is to just convert my shitcoins back to ETH, send to coinbase, claim i held for a year, and pay capital gains tax on the ETH. we'll be long dead before those retards at the IRS figure out blockchain analysis
plan b, 10-30k is also enough to leave the US.
Ayden Gutierrez
Can you get away with it? Yes, if you’re lucky. But if they decide to audit you, they can easily show that only did you not report trades and profits, but you deliberately lied on tax return. You’ll get a lot of edgy responses in this thread but the IRS will send you to jail, they don’t do slap on the wrist things for first time offender.
Noah Wright
I'm mainly trying to exploit the long term cap gains for low income ppl which I believe is 0%
Julian Taylor
Yes the IRS does slaps on the wrist you retard. I've gotten three slaps on the wrist since 2004, for seeing how far I could push them and how much I could get away with.
Twice was for underpaying taxes, and the third time was for not paying taxes at all for five years. All three times I got no penalties at all. People don't realize how understaffed the IRS is and how few people they have the time to go after.
Justin King
I’m doing the same. Bought ETH in March of 2017. Haven’t sold anything to fiat since. Moved a portion of eth into 3 alts on etherdelta and then binance. Eventually I’ll transfer all to ETH when want to cash out. Obviously I can only cash out the same amount of eth that I started with max if I want to make it look like I have only been holding eth the whole time. Fuck the IRS they have no idea I bought alts on ether fucking delta unless they audit all my wallets. Even so oh well I didn’t know there were no clear rules and I will pay my taxes on any transfer to fiat I make in the future.
Daniel Thomas
yeah basically this. I'm planning on cashing out a small chunk to pay off a loan which will be under the total # of eth I bought. I'll figure out some sort of fabricated trade and wait a year to justify long term gains if I cash out completely.
Hopefully uncle sam doesn't poke his nose
Nicholas Torres
Then what happened to Wesley snipes?
Cameron Young
they don't need to figure out blockchain analysis, you only have a problem if they ping you with an audit in which case you will be providing them with your accounts wallets etc... you mostly likely won't be audited though and won't have a problem. the reason people launder money is that so if they are audited they still won't have a problem. what you are doing is basically betting on your hope nobody ever checks.
James Lewis
The IRS went after Wesley Snipes to punish him for making those shitty Blade movies.
Robert Green
yeah, you figure the odds of that happening are slim? If a guy with basically no income withdraws 200k or something will that raise red flags?
Tyler Bennett
They got more money than they were asking for in the tax reform bill, dummy.
This issue doesn't need more resources, most of the process is automated. What, did you dumb ass think they process returns by hand? LOL.
Almost the entire process, until a face to face meeting with an auditor, is completely automated. It's not hard to write a script that looks at income, and sees no source for it, or if the numbers don't line up.
The audits will start showing up in people's mailboxes through automated certified letters around 1.5-2 years from filing, according to my relative who works at the IRS. If you cash out - but that's all they really care about anyway.
Adrian Diaz
Most likely what happened with you is they determined that you couldn't pay, so they waived the penalties. I know someone who owed 50K in taxes, and was unemployed and broke, and said "Throw me in jail, I can't pay", so they waived the penalties and cut off a big chunk of the bill, and let him do a payment plan. So your bragging is pretty much pointless, especially since it's a completely different set of circumstances.
Angel Bennett
If I mined Monero back in 2015 and 2016 is that taxable?
Benjamin Butler
The IRS doesn't need to figure out anything. It's on you to track your trades, and report them, not you - and that's the same rules day traders in the real stock market have to follow, so why do you think you're special?
If you have income you can't document, you're fucked. Period. They don't have to prove a single fucking thing. All they have to do is show a judge that you have income you didn't report, with your bank statements - judgement against you confirmed, and then they get to go after you in collections, and freeze your bank accounts, garnish your paycheck, and if you have any assets, put liens on them or just take them.
But you keep thinking you know things. That's what most people who get caught think.
Carter Ortiz
Ask a tax accountant. That's what they're for.
Blake Sanchez
He was made an example of, which is pretty much all they have the budget for.
Luis Fisher
thats income i think
Nolan Johnson
Could I withdraw using localmonero? They won't know right?
Asher Mitchell
Fuck yes $200k will throw up a red flag. Jesus Christ.....
Angel King
>irs taxes literal internet funtokens even if you don't sell them for fiat do they tax videogame lootboxes too?
If you cash out over 10k you have to report. You might get away with it now, but later down the road they will fuck you in the ass.
>cashed out 80k in January
Matthew Bennett
No retard. Crypto to crypto is taxed
Bentley Baker
>doesn't just cash out by buying gold bars and having cash shipped to him inside computer cases you are literally a cucks
Leo Taylor
It is considered taxable income once you sell it for fiat. The worst part of the IRS is the law says EVERY dollar you get is taxable income. Sold a used toaster at a garage sale? That's taxable income.
Samuel Powell
IRS is not able right now to officially track your gains in the blockchain. The problem comes when you have to prove where that money comes from. Anti-Money laundry will come soon or later after you when you cash out your $100k
Connor Gutierrez
It's ok if you save documentation of your trades (go to your exchanges, export .csv files and upload to your favorite cloud). I mostly use CoinTracking.info
