Tuesday, 29 September 2020

Bitcoin and tax evasion?


Hello reddit,Before you rip me apart, please understand I am just beginning to learn bitcoin. I admit that the entire concept has really grasped me.My question is one of legit curiosity. Not trying to stir up trouble or say bitcoin is good or bad.But basically, if I have bit coin as currency.. what’s to force me to pay taxes? The government would never know how much money I have more how much I’m spending. Wouldn’t this make it really easy to avoid taxes?I understand that if btc were an actual currency that was provided by w2 income then obviously it would be reported to the irs. So this question doesn’t really apply to the potential future of bitcoin.What I am talking about the immediate future. Say somebody makes $100k on a bitcoin investment. Sure if they converted to fiat and suddenly made a $100k investment that would set off alarms, but what if they made small deposits as needed. Just a few grand here or there.I am not promoting breaking the law. I am just curious how bitcoin people reconcile this. I have a very high w2 income and I pay my taxes. Not gonna lie though, when nearly half my income goes to Uncle Sam it hurts! And I imagine that if there were a simple and u traceable way to avoid that I’m sure a lot of people would struggle with that temptation.Any thoughts are appreciated! via /r/Bitcoin https://bit.ly/2S8PtUz

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