opinionIf You're Not Into Bitcoin, That's Fine.Just Know the IRS Wants It Gone--For Nefarious ReasonsImagine if you found out that the IRS had just issued a summons for every financial transaction by every customer of your bank for the last two years, just to see if they had maybe committed some form of tax fraud, and that a federal judge had approved that request.Last week, that is exactly what happened to the bitcoin exchange, Coinbase.Under the guise of ferreting out people committing tax fraud, the IRS, via the DOJ, filed a "John Doe' summons requesting every financial transaction that has occurred on Coinbase between 2013 and 2015.The IRS has audited taxpayers who failed to report bitcoin income and were Coinbase users, but there is no indication that fraud has been committed on a mass scale by Coinbase's users.A federal judge granted the IRS the authorization to collect millions of records, nonetheless.According to a Forbes article, the head of the Justice Department's Tax Division, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, explained the filing as addressing the concerns mentioned above:“As the use of virtual currencies has grown exponentially, some have raised questions about tax compliance.

Tools like the John Doe summons authorized today send the clear message to U.S.taxpayers that whatever form of currency they use – bitcoin or traditional dollars and cents – we will work to ensure that they are fully reporting their income and paying their fair share of taxes.”In short, the DOJ and IRS are using a brute force technique to tell bitcoin users, without reasonable suspicion of wrongdoing, that they can run but they can't hide.For its part, Coinbase has said it will fight to protect users' privacy.On reddit, the company posted:Coinbase here.We are aware of, and expected, the Court’s ex parte order today.As we stated before, we look forward to opposing the DOJ’s request in court.Tax attorney Daniel Winters penned an op-ed for Coindesk explaining what the summons means for bitcoin users, most notably that the IRS wants to scare users into reporting income and paying applicable taxes.But there is a much more concerning aspect to this fishing expedition: the “John Doe” summons creates a class of people (bitcoin users) and would allow a similar summons to be issued at any other organization that operates as a bitcoin “bank” or exchange.By virtue of using bitcoin, you are already under suspicion of the very serious crimes of tax fraud or evasion.IRS Commissioner John Koskinen said, of the summons:“Transactions in virtual currency are taxable just like those in any other property.

The John Doe summons is a step designed to help the IRS ensure people doing business in the emerging economy are following the tax laws and meeting their responsibilities.”This isn't the first time the IRS has used its unchecked power to target specific groups of people en masse.IRS targeting of activist groups based on their political ideology has remained in the news for several years.Attempts to pin down accountability for that scandal, despite proof of negligence and outright misleading information shared with investigators, have proven impossible.Just this week, Koskinen faced a failed impeachment effort by the House.cara bikin bitcoinDuring those impeachment proceedings, Rep Jim Jordan (R-OH) said of the Commissioner:“John Koskinen has been able to get away with stonewalling Congress, obstructing justice, and breaching the public trust.scan for bitcoin virus

It’s time that Congress held him accountable for his actions.”The IRS needs a healthy dose of accountability to taxpayers.An attack on Bitcoin is just another assault on Americans' freedoms — whether they're into the financial mechanism or not.Bitcoin for Political Donations BitPay has the most user-friendly tools to accept bitcoin payments in person and online.FEC Compliant Direct Deposit Start Accepting Bitcoin Now Payment Processing Tools Mobile Checkout POS Internet Donations Event Tickets For Eligible US 501(c)(3) Organizations If your organization is registered as a 501(c)(3) with the IRS, BitPay will process the bitcoin payments at NO CHARGE.is bitcoin mining bad for the environmenthttp://www.irs.gov/app/pub-78/ You must be on the IRS Pub78 list (eligible to receive tax-deductible donations) to qualify for the no-charge processing.ethereum tutorial 2017

/ July 1, 2016 By William Digges What’s the first thing big government does when something new is invented?The IRS loves nothing more than to categorize wealth as taxable.The IRS is also scared of technology.I’m not just saying this because Uncle Sam’s taxmen are using 13-year-old outdated, unsupported Windows XP software.[1]Nor is it because the IRS writes code in an obsolete COBOL programming language from JFK’s times for mission-critical applications.[2]ethereum mining redditNo, the IRS fears technology so much it refuses to think about proper ways to tax Bitcoin, a “digital currency” that exists only on the internet but has real value.bitcoin etoroRather than propose an addendum to the tax code, the IRS classifies Bitcoin as property, akin to stocks and real estate.This harms the day-to-day benefit of Bitcoin but boosts its philanthropic potential.

Many financial advisors see Bitcoin and its unique characteristics as a very useful means of philanthropic work.Laura Saunders, a specialist on taxes at the Wall Street Journal, writes, “The American Institute of CPAs sent the IRS a letter this month requesting clarifications on…donating digital currencies to charity”.Pensco Trust Company is another wealth manager that accepts Bitcoin in its IRAs and trusts.Fidelity Charitable allows Bitcoin to fill their donor-advised funds.[3]Fidelity’s website provides infographics on donating though a donor-advised fund.Several of the “tax advantages” are donors minimize their capital gains tax exposure, charities receive up to 20% more, compared to self-traded assets, donors enjoy a tax deduction, and donors pay no fees for trading and processing.[4]Sounds like a good deal to me.Fidelity Charitable’s Bitcoin-specific website offers an example of how someone used Bitcoin to increase the value of his donation and his donor reach.

Back when Bitcoin traded at around $100 a coin, “Alex” owned 400 Bitcoin worth $40,000.But in 2015 when he wanted to donate to a lymphoma charity he realized that a coin was worth around $400.That meant a much higher capital gains tax would reduce his donor power if he traded the Bitcoin for U.S.But by cutting out the middle man and pledging his Bitcoin directly to a donor-advised fund, “Alex” avoided all capital gains tax.This in turn raised the power of the donation from $131,440 to $160,000.It also reduced his tax obligation by another $63,360.[5]With the additional remaining funds, the donor was not only able to increase his support to the original charity; he was also able to grant a gift to his alma mater.In the world of Bitcoin, everyone benefits.Bitcoin should be considered a sort of “Swiss army currency.”  It could be used to donate to charity, or buy falafel from down the street.Its gradual increase in value can be a source of wealth, yet it is near fully liquid.Like real estate and the stock market, it accumulates value through speculation, but at the same time it can be used to buy anything on Amazon, or in several brick and mortar stores.