Why the IRS Fears Bitcoin

Re:Why the IRS Fears Bitcoin by Mc_Big_G on Tuesday January 23, 2018 @01:57PM (#16216281)

Let's say I bought bitcoin on coinbase. Two days later, I sell it to a friend. He gives me cash, I give him the private key. Then he does whatever he wants. Am I now responsible for every transaction he makes from that address? Also, if I mined bitcoin, how would the IRS know?

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Re:Why the IRS Fears Bitcoin by cal5k on Tuesday January 23, 2018 @02:03PM (#16216336)

Quite simply they can ask you to prove the origin of the bitcoins when you eventually want to use them/convert them to fiat/etc. Didn't buy them on an exchange or from another person? Well, then you probably mined them and they'll be taxed as income.

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Re:Why the IRS Fears Bitcoin by UncleMeat on Tuesday January 23, 2018 @02:27PM (#16216667)

> I give him the private key

Why would you do this? Why would anybody ever accept a private key in a transaction. Now the key is no longer private!

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Re:Why the IRS Fears Bitcoin by Mc_Big_G on Tuesday January 23, 2018 @02:50PM (#16216934)

I didn't say it was smart...it's just possible.

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