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IRS Now Has a Tool To Unmask Bitcoin Tax Evaders (thedailybeast.com)
SonicSpike shares a report from The Daily Beast: You can use bitcoin. But you can't hide from the taxman. At least, that's the hope of the Internal Revenue Service, which has purchased specialist software to track those using bitcoin, according to a contract obtained by The Daily Beast. The document highlights how law enforcement isn't only concerned with criminals accumulating bitcoin from selling drugs or hacking targets, but also those who use the currency to hide wealth or avoid paying taxes. The IRS has claimed that only 802 people declared bitcoin losses or profits in 2015; clearly fewer than the actual number of people trading the cryptocurrency -- especially as more investors dip into the world of cryptocurrencies, and the value of bitcoin punches past the $4,000 mark. Maybe lots of bitcoin traders didn't realize the government expects to collect tax on their digital earnings, or perhaps some thought they'd be able to get away with stockpiling bitcoin thanks to the perception that the cryptocurrency is largely anonymous.
"The purpose of this acquisition is to help us trace the movement of money through the bitcoin economy," a section of the contract reads. The Daily Beast obtained the document through the Freedom of Information Act. The contractor in this case is Chainalysis, a startup offering its "Reactor" tool to visualize, track, and analyze bitcoin transactions. Chainalysis' users include law enforcement agencies, banks, and regulatory entities. The software can follow bitcoin as it moves from one wallet to another, and eventually to an exchange where the bitcoin user will likely cash out into dollars or another currency. This is the point law enforcement could issue a subpoena to the exchange and figure out who is really behind the bitcoin.
"The purpose of this acquisition is to help us trace the movement of money through the bitcoin economy," a section of the contract reads. The Daily Beast obtained the document through the Freedom of Information Act. The contractor in this case is Chainalysis, a startup offering its "Reactor" tool to visualize, track, and analyze bitcoin transactions. Chainalysis' users include law enforcement agencies, banks, and regulatory entities. The software can follow bitcoin as it moves from one wallet to another, and eventually to an exchange where the bitcoin user will likely cash out into dollars or another currency. This is the point law enforcement could issue a subpoena to the exchange and figure out who is really behind the bitcoin.
social contract.
Fuck you. Taxation is theft.
The social contract is refraining from initiating violence, not acquiescing to a protection racket.
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
you have by default signed the contract
Bullshit.
sociopath.
Project much?
-jcr
The only title of honor that a tyrant can grant is "Enemy of the State."
I don't get dick for the half of my paycheck that is stolen by government.
Evading taxes is a Patriotic duty.
Corporatism != Free Market
Perhaps he would be less opposed to paying taxes if he wasn't worried about being murdered by a police officer, or if those taxes weren't used to fund a global offensive military force, or used to alter the market and ensure monopolies can continue pillaging, etc.
Taxes are in fact theft. Merely because I provide you with some value doesn't stop the fact that I am threatening you and your life if you are unwilling to pay me and my friends. Voluntary interaction is the only right interaction; all else is slavery, rape.