Crypto 2020 taxes USA residence future planning for confiscation; report or not report?

[tomdickharry]

Hello, new here. As a side note, are there any other places where tax strategies like this can be discussed openly? I haven't really found anywhere I can ask these kind of things?

My taxes are due June 15th this year for 2020 tax year.

I have yet to report any crypto on any of my taxes. I've never cashed any out to bank account. I initially got my crypto through coinbase around 2015, and have done some trading through binance/bittrex/cryptopia over the years. My total purchases have been around 5k or less. I've never received any kind of tax form 1099. I did recently this year do a KYC for a 1:1 ratio swap of XDCE -> XDC. There was no cost, it was a required 1:1 ratio swap. I'm only bringing this up since I did do KYC for the swap, so I'm not sure if this would get reported to some gov agencies.

Basically, one of my questions is...With all the new crackdown and IRS hires.... Are they eventually going to target ALL coinbase/binance/exchange transactions to find people who fall under the 20k reporting limit??

Also, I have yet to see this...But with all the "great reset" and "you'll own nothing and be happy"...What are the chances they will attempt to confiscate peoples crypto??

This is a real considerations/factors to take into account!

Also, how will Genslers regulations factor into this?

I'm trying to determine if I *should* report my crypto transactions from 2020 or NOT. Many of my transactions were done without KYC, so it will be difficult for me to track/trace it all down. Also, there are transactions I possibly don't want to be traced. ALso, I have XMR monero, just reporting that could possibly put you on some kind of gov list?

Also, I have seen some people talk about ways to legally avoid crypto taxes, by creating a trust or corp and put the taxes somehow under that umbrella (like how big corporations do it)??

Please, I'm not looking for a bunch of hate here. I really am concerned with all the stuff going on. There is real possibility the gov will try to ban or make illegal or try to come after those that they are aware of that has crypto. Confiscation?

Also, even if I DO report it and become completely legal... If I do any crypto -> fiat bank transactions... Won't this also put me under the gov microscope and have a greater risk for audit?

Also, reporting that I have taxes in general, I feel like puts you at a greater risk of audit with all the new IRS hires that was just announced? They aren't going to just target rich people, anyone that has crypto I think will become a target (even if reported on taxes)??

I know this is a lot of questions, sorry about that.

Does anyone have any resources where I can get more info on crypto and taxes, like: any discords, forums, legitimate lawyers/cpa's, etc? I need help here, and I feel alone in this, I have no idea where I can get help with the above ^^^ kind of questions?!

Thank you very mcuh all for any / all suggestions help criticisms, etc.

 

[tomdickharry]

Is this the best forum to post this? I saw the crypto forum as well, is that a better place for this post? I just needs some direction with some of these questions. I also don't know where to look for a good/decent priced CPA that accepts crypto? I saw one on reddit named "Gordon Law", that specializes in crypto and taxes. Are there any other CPA's?

I know a CPA is going to say "report and pay the gov".

I do have concerns (mentioned in the OP), but wonder how long a person can "stay under the radar" and pay for things using crypto without being found out by the gov?

If there is a way to setup a corp or trust or international bank account or business or some kind of holding that I can setup to bypass or help with taxes, I am also interested in that. I don't know if that can be setup NOW for 2020 taxes? Or, if such a thing would need to be setup to handle holdings/transactions from after the point I set it up?

Are there any professionals/forums/chats/CPA's that people can point me to in the right direction?

This is a "line in the sand" with my crypto. The gov has no idea of my holdings, so I think I either need to report it this month for my taxes, or don't report my last years transactions and hide it.

But how long can a person do this ^^ in the upcoming years without being caught??

I'm sure there will always be non-KYC / international / decentralized exchanges, gift cards, credit card services, outside USA countries and bank accounts... But realistically, how long can a person do this before the gov investigates and closes all this down?

What legal options do I have? What are opinions on reporting vs non-reporting of your transactions to the IRS?

I've seen many people stating that they flat out aren't going to report transactions, because "the gov doesn't know unless I cash out". Is this really feasible for the long term??

I need to know if I should get out and ahead of this thing now and let the gov know or not. And what are the repercussions of doing so (or not doing so) by the IRS and also about the very real possibility or the USA becoming communist or starting to ban and confiscate people's assets

 

[daxbr]

It is no longer a reasonable stance that the IRS depends on information provided by you. Listen to your CPA.

 

[Dom pedro]

Maybe you can form an offshore company and have your cryptos there? You can use DEX for exchanging between tokens. This way I think you don't need to report any crypto transactions at all. At least it's how it works in my country. The crypto->fiat path is much more complex, but it is not impossible.

 

[tomdickharry]

It is no longer a reasonable stance that the IRS depends on information provided by you. Listen to your CPA.

Thanks for your response. I don't quite understand it though. Are you saying they can get my crypto and tax info on their own without me reporting it (or not reporting it)? LIke with services chainalysis for example, or similar tracking? I don't have a CPA. I keep seeing people saying ask your CPA, but where are the crypto CPA's? Where exactly can I find one? At the very least I need to ask some questions that are particular to my own situation.

How are others in the USA going to get away without paying taxes (legally or illegally)? Are there trust/business/corporate strategies that can be done?

What about not reporting, but just getting credit/gift cards and loaning against my crypto? Is this feasible for longterm? Can it be done legally?

What are my options seeing that my taxes are due june 15th?

Are there strategies or someplace I can read more about these?

 

[tomdickharry]

Maybe you can form an offshore company and have your cryptos there? You can use DEX for exchanging between tokens. This way I think you don't need to report any crypto transactions at all. At least it's how it works in my country. The crypto->fiat path is much more complex, but it is not impossible.

I'm in the USA (unfortunately it seems like as far as crypto goes). I'm looking into options like this, but i need help from experienced people on it. Is it feasible for long-term to not get in trouble? Or a way to do this legally?

Things are tightening in the US. Look how they just announced hiring of 87,000 new IRS agents. I think they're going to be going after everyone for every little nook and cranny in this country. So, I know how to use dex's and things liket hat, but the question is will people that skirt taxes like that get caught eventually? Are they eventually going to track after all exchange accounts (even the ones under 20k)? It seems like this is a strong possibility. And I initially got my crypto through coinbase/binance/cryptopia/bittrex.

In today's laws, its all udner the radar, because they're only looking at people that did more than 20k (i believe that amount). But in the future?? Does anyone knows?

 

[daxbr]

Thanks for your response. I don't quite understand it though. Are you saying they can get my crypto and tax info on their own without me reporting it (or not reporting it)? LIke with services chainalysis for example, or similar tracking? I don't have a CPA. I keep seeing people saying ask your CPA, but where are the crypto CPA's? Where exactly can I find one? At the very least I need to ask some questions that are particular to my own situation.

How are others in the USA going to get away without paying taxes (legally or illegally)? Are there trust/business/corporate strategies that can be done?

What about not reporting, but just getting credit/gift cards and loaning against my crypto? Is this feasible for longterm? Can it be done legally?

What are my options seeing that my taxes are due june 15th?

Are there strategies or someplace I can read more about these?

Unless you have supercool setup that you put in place yourself from the beginning and you believe in it , your personal comfort today depends on not what they know today but also what they will know at any time in the future.

 

[Fulton Abraham Sanchez]

Hello, new here. As a side note, are there any other places where tax strategies like this can be discussed openly? I haven't really found anywhere I can ask these kind of things?

My taxes are due June 15th this year for 2020 tax year.

I have yet to report any crypto on any of my taxes. I've never cashed any out to bank account. I initially got my crypto through coinbase around 2015, and have done some trading through binance/bittrex/cryptopia over the years. My total purchases have been around 5k or less. I've never received any kind of tax form 1099. I did recently this year do a KYC for a 1:1 ratio swap of XDCE -> XDC. There was no cost, it was a required 1:1 ratio swap. I'm only bringing this up since I did do KYC for the swap, so I'm not sure if this would get reported to some gov agencies.

Basically, one of my questions is...With all the new crackdown and IRS hires.... Are they eventually going to target ALL coinbase/binance/exchange transactions to find people who fall under the 20k reporting limit??

Also, I have yet to see this...But with all the "great reset" and "you'll own nothing and be happy"...What are the chances they will attempt to confiscate peoples crypto??

This is a real considerations/factors to take into account!

Also, how will Genslers regulations factor into this?

I'm trying to determine if I *should* report my crypto transactions from 2020 or NOT. Many of my transactions were done without KYC, so it will be difficult for me to track/trace it all down. Also, there are transactions I possibly don't want to be traced. ALso, I have XMR monero, just reporting that could possibly put you on some kind of gov list?

Also, I have seen some people talk about ways to legally avoid crypto taxes, by creating a trust or corp and put the taxes somehow under that umbrella (like how big corporations do it)??

Please, I'm not looking for a bunch of hate here. I really am concerned with all the stuff going on. There is real possibility the gov will try to ban or make illegal or try to come after those that they are aware of that has crypto. Confiscation?

Also, even if I DO report it and become completely legal... If I do any crypto -> fiat bank transactions... Won't this also put me under the gov microscope and have a greater risk for audit?

Also, reporting that I have taxes in general, I feel like puts you at a greater risk of audit with all the new IRS hires that was just announced? They aren't going to just target rich people, anyone that has crypto I think will become a target (even if reported on taxes)??

I know this is a lot of questions, sorry about that.

Does anyone have any resources where I can get more info on crypto and taxes, like: any discords, forums, legitimate lawyers/cpa's, etc? I need help here, and I feel alone in this, I have no idea where I can get help with the above ^^^ kind of questions?!

Thank you very mcuh all for any / all suggestions help criticisms, etc.

Yes, the US Treasury will enforce reporting for all crypto holders to start with. In addition the IRS created a specialized unit to investigate all taxpayers and crypto exchanges and the latter will have to report to the IRS. For now the reporting requirement from the exchanges is USD 20K for each account holder US citizen.

 

[JackAlabama]

Hello, new here. As a side note, are there any other places where tax strategies like this can be discussed openly? I haven't really found anywhere I can ask these kind of things?

My taxes are due June 15th this year for 2020 tax year.

I have yet to report any crypto on any of my taxes. I've never cashed any out to bank account. I initially got my crypto through coinbase around 2015, and have done some trading through binance/bittrex/cryptopia over the years. My total purchases have been around 5k or less. I've never received any kind of tax form 1099. I did recently this year do a KYC for a 1:1 ratio swap of XDCE -> XDC. There was no cost, it was a required 1:1 ratio swap. I'm only bringing this up since I did do KYC for the swap, so I'm not sure if this would get reported to some gov agencies.

Basically, one of my questions is...With all the new crackdown and IRS hires.... Are they eventually going to target ALL coinbase/binance/exchange transactions to find people who fall under the 20k reporting limit??

Also, I have yet to see this...But with all the "great reset" and "you'll own nothing and be happy"...What are the chances they will attempt to confiscate peoples crypto??

This is a real considerations/factors to take into account!

Also, how will Genslers regulations factor into this?

I'm trying to determine if I *should* report my crypto transactions from 2020 or NOT. Many of my transactions were done without KYC, so it will be difficult for me to track/trace it all down. Also, there are transactions I possibly don't want to be traced. ALso, I have XMR monero, just reporting that could possibly put you on some kind of gov list?

Also, I have seen some people talk about ways to legally avoid crypto taxes, by creating a trust or corp and put the taxes somehow under that umbrella (like how big corporations do it)??

Please, I'm not looking for a bunch of hate here. I really am concerned with all the stuff going on. There is real possibility the gov will try to ban or make illegal or try to come after those that they are aware of that has crypto. Confiscation?

Also, even if I DO report it and become completely legal... If I do any crypto -> fiat bank transactions... Won't this also put me under the gov microscope and have a greater risk for audit?

Also, reporting that I have taxes in general, I feel like puts you at a greater risk of audit with all the new IRS hires that was just announced? They aren't going to just target rich people, anyone that has crypto I think will become a target (even if reported on taxes)??

I know this is a lot of questions, sorry about that.

Does anyone have any resources where I can get more info on crypto and taxes, like: any discords, forums, legitimate lawyers/cpa's, etc? I need help here, and I feel alone in this, I have no idea where I can get help with the above ^^^ kind of questions?!

Thank you very mcuh all for any / all suggestions help criticisms, etc.

You have cool spots in the US and folks like DeSantis, Suarez, Saylor, Pompliano etc. Go where these guys live and you should be ok if you are worried about confiscation. Try to get an advise from one of the professionals there doing this crypto stuff for the big players and you might get advice for your situation.
Otherwise leave the US but then again where to go is key but since you are already there internal relocation would make the most sense in my view.
Puerto Rico is also often quoted to help US folks with tax.