IRS Is Carefully Watching Bitcoin and Other Cyber Currency
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.
Motivating Employees Through Today’s Economic Crisis – Executive Strategies
Are you motivating employees through today’s economic crisis, you will find some executive strategies below helpful. Tough Times Call for Tough Measures, Rallying the Troops, Circling the Wagons, Bunkering Down may all seem like maxed-out maxims in today’s ailing economy, but what other rallying cries can today’s executives call on? As layoffs and cutbacks ravage…
Are You Looking for a Tropical Tax Haven?
Are You Looking for a Tropical Tax Haven? Tax Haven The idea of moving overseas in an effort to escape the high price of taxes is not a new one for rich Americans. Many ultra-wealthy Americans have looked at all kinds of different options in hopes of lowering their tax bill. As the federal government,…
Ten Ideas to Enhance Cash Flow
Ten Ideas to Enhance Cash Flow Managing cash flow is what separates good companies from the truly successful ones. Indeed, your ability to monitor the cash flow of your business can be the vital difference between profit and loss. Here are 10 ideas to enhance cash flow: Assess Your Risk Up Front When you do…
“C” Corporation versus “S” Corporation Entity Selection Decision
Your “C” corporation versus “S” corporation entity selection decision is often step one when starting a company. This comes up very often. How do we decide on whether to be a “C” Corporation or an “S” Corporation? You might also want to operate as a Limited Liability Company which is much like an S Corporation.…