IRS Is Carefully Watching Bitcoin and Other Cyber Currency

Businessman,Examines,A,Tablet,With,A,Magnifying,Glass.,Concept,Of

Big Brother is watching. Always watching. In this case, Big Brother is the IRS and you might be surprised what they’re looking into now. Although, when it comes to the IRS, nothing should surprise us.

Have you ever heard of Bitcoin? It’s one of a handful of virtual currencies that making buying and selling things in the digital age much easier. Essentially, virtual currencies are exactly that: virtual. They are not tangible, their value can fluctuate constantly and they only exist in cyberspace. But that’s not stopping the IRS from taking a closer look at how it can regulate them.

That’s because it appears that virtual currencies could be a new way for tax evaders to hide money “overseas.” Simply put, virtual currencies, like Bitcoin, offer secrecy with no trail to follow. That’s why the IRS has created a team of special agents to focus on tracking these virtual currencies. So if you’re trying to hide money through Bitcoin, beware.

To use Bitcoin you have to have a virtual wallet, as well as public addresses and private keys. What many people who use Bitcoin don’t know is that every transaction they make with Bitcoin is added to a record book known as a block chain. That means to review these transactions the IRS only has to access the block chain. It then follows that chain back to the public address that was used for the original Bitcoin transaction. The IRS then uses whatever measures it takes to link the address to the identity of the user.

That means using these virtual currencies may not actually be as secretive as users thought they were. So if you’re using one or more of these types of currencies, then as always beware of the taxman.

Posted in ,

Bob Haney

Bob Haney, Creator of Heavenly Waffles   Interview Transcript: Alan Olsen This is Alan Olsen, and welcome to American dreams. My guest today is Bob Haney. Actually, I should correct that the chef Bob Haney, he is the founder and the creator of Heavenly Waffles. Bob, welcome to today’s show. Bob Haney Alan, thanks so much…

Mo Lidsky

Mo Lidsky

Mo Lidsky: The Refugee Boy that Grew Up to Empower Families for the Future A Journey Rooted in Resilience Mo Lidsky’s story begins in Ukraine, where he was born and raised. In his early juvenile years, he immigrated to the United States with his family, and this transition was challenging. As refugees leaving Eastern Europe,…

5 Powerful ESG, Business, and Investing Trends

Key ESG, Business, and Investing Trends. What does the future hold for businesses navigating the complexities of sustainability and finance? A recent American Dreams Show interview by Host, Alan Olsen, of Michael Meehan, titled “The Future of ESG and Impact Investing with Michael Meehan“, addressed 5 powerful ESG, business, and investing trends. Michael, Co-founder of…

The Power of Design Packaging: 4 Steps for Successful Entrepreneurs

The Power of Design Packaging: 4 Steps Make Successful Entrepreneurs

What is design packaging, how can it help entrepreneurs be successful, and where to learn more about it? In a world where first impressions are everything, the art of design packaging has emerged as a critical factor in setting businesses apart. Few understand this more profoundly than Randi Brill, Chief Creative Officer of JUST CALL…