IRS strikes again, a storm caused by BTC capital gains tax

Interpretation Today

Recently, US District Court Judge John Coughenour heard a petition filed by Washington resident William Zietzke, which requested the IRS to stop collecting data on its BTC holdings from the exchange Bitstamp.

This case has caused widespread discussion, because investors are more concerned about whether crypto token users have financial privacy rights and the issue that IRS may not protect personal privacy.

The reason is that Zietzke received a capital gain of $ 104,482 in 2016, mainly from two BTC transactions. However, Zietzke realized in 2017 that these transactions did not take place in 2016 and submitted an amended return. The new return showed that the capital gain was only $ 410, and Zietzke demanded that the IRS refund the extra tax.

So IRS started auditing Zietzke's crypto token transactions. IRS issued a subpoena to Bitstamp, asking Bitstamp to provide all the data of Zietzke's trading BTC since the account was opened.

Judge Coughenour agreed with Zietzke's view that the scope of the IRS investigation was too large, and requested the IRS to reduce the scope of the investigation to the BTC transaction in 2016, but rejected his other claims, including-the IRS subpoena was issued maliciously; Information it needs; IRS's subpoena violates his right to reasonable privacy; IRS cannot guarantee the security of the data it collects from Bitstamp.

Judge Coughenour dismissed Zietzke's claim that he had the right to privacy and that the IRS had no right to obtain his public key address.

Despite Zietzke's efforts, the judge finally ruled that the IRS now has two weeks to submit a revised subpoena to Bistamp and Zietzke has one week to decide whether to proceed with the appeal. The ruling states that the IRS has the right to collect relevant information to enable an audit of Washington residents.

Coughenour stated:

Like many things in life, crypto token transactions also generate taxes.

Market research

The market is down again today, and the market is buzzing. The price of a mainstream exchange stopped being updated in the morning and was interpreted as "plugging the network cable". In the afternoon, the news of "stolen" from a well-known Korean exchange all aggravated the panic in the market. At present, it seems that the market needs some time to digest this Irrational sentiment, but investors should be cautious in using leverage or surrendering chips. In the long run, the BTC halving market is approaching. The recent shock has provided investors with a more suitable price. The current time is still a good time to invest in digital assets such as BTC. Long-term currency holders can consider fixed investment or bargain hunting. Into.

risk warning

The price of digital tokens fluctuates violently. Investing in digital tokens is a high-risk investment behavior. Investors are required to reasonably evaluate their investment capabilities and risk tolerance, and use leverage carefully, strictly control risks, and invest cautiously. Investors are reminded to keep in mind that investment is risky and you need to be cautious when entering the market.

Disclaimer

Personal views are for reference only. The analysis in this article does not constitute a recommendation for buying and selling. Reprint is welcome, but the source must be indicated.