Court Rules IRS Can Spy on Your Crypto! Are You Safe? – 255

Court rules the IRS can access coinbase User trading data and this is going to Be a big deal moving forward as far as You know what how all of this is going To be regulated and how much you're Going to owe the IRS based on trades Etc It's going to get a little tricky I mean From the perspective here recently what I have noticed you know when doing taxes And so on is that by and large I have Been you know just exporting those and Then creating the 8089s and then Submitting that to the IRS but even then You talk to CPAs you talk to tax Attorneys a lot of them won't touch it With a 10-foot pole and even when you File it doesn't seem like it's extremely Clear as to what's going on but a Coinbase user has attempted to argue the IRS violated his constitutional rights When it sought hits his Trading data a U.S federal court has ruled the International Revenue Services service IRS is within its right to access Coinbase user data in a case which Sought to block the tax agency on Constitutional grounds plaintiff James Harper filed suit in August of 2020 Against the IRS it's then commissioner Charles reddig and 10 IRS agents it Alleged they had violated his rights to Obtain trading records through what's Known as a John Doe summons John Doe Summons is a common tactic used by

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Multiple government agencies essentially It affords the legal right to request a Third party Handover data belonging to An individual or group of individuals For tax evasion checks now of course This is you know along the lines you're Going to hear people that are going to Argue you know invasion of privacy that Sort of thing what I wanted to really Demonstrate here so people understand is When we start talking about services Like Ledger a hardware wallet it's Supposed to protect your privacy and so On that's kind of not going to work if They're implementing these sort of Recovery tools and so on based on the Identity tied to it and this is you know Going to probably be more and more Common practice moving forward the Question of course is does that align With the fundamentals of cryptocurrency I think a lot of people especially Bitcoin maximalists would argue that it Does not right the U.S District Court of New Hampshire citing a May Supreme Court Ruling said the agency's power afforded To it by Congress meant Harbor was not Entitled to protections or relief Beyond Existing checks on the irs's powers According to court documents hosted by Bylaw 360. Harper who maintained his Innocence had previously attempted to Argue that such a request for his Internal coinbase trading records

Violated his fourth and fifth amendment Rights an early era crypto Trader and Former in-house legal consultant for the Bitcoin Foundation Harper filed in Amicus brief in 2016 fighting against The agency's initial request for Coinbase to hand over all user trading Records despite ignoring requests from The agency coinbase was reportedly Forced to hand over some of its largest Users information including Harper's Following a separate summons against the Delaware registered exchange a year Later Harper later appealed and was Granted the right to sue the IRS in the First circuit last year the IRS alleged Harper had failed to adequately declare His crypto trades in 2013 and 2014 Prompting action from the agency against Him and others since 2016 the agency has Been using John Doe summons for digital Asset enforcement efforts in August of 2022 a California Federal Court granted An order allowing the IRS to issue a John Doe summons to sfox a Los Angeles-based crypto Prime broker the Order sought data on U.S taxpayers who Between 2016 and 2021 conducted crypto Transactions valued at least twenty Thousand dollars with or via the sfox Platform today's sponsor is BT miners BT Miners has been a long time sponsor of The channel and a proven reliable source For Asic miners if you're looking to

Purchase Asics Hardware from Bitcoin to Dogecoin miners they are available for Purchase on BT miners is a trusted Source by both and follow the affiliate Link in the description and tell them so Sent you to support the channel now The entire problem here at the end of The day is that we're working with a System that is fighting against another System right when we get into like The Cypher Punk arguments and so on you're Going to get into the arguments of Privacy and and such we go back to Email Encryption and all the way back to the Early 90s and so on and you see that all Of the ability for individuals to Basically Have a right to privacy or keep their Transactions private or to themselves Has been removed even if that is like Communication right and I think that That that is kind of the Crux of the Issue here that being said you know tax Evasion is going to be one of the number One things that is targeted by the Government to stifle Innovation within Cryptocurrency and it's not always going To be straight up front right we could Say all right well if you make money on This pay your capital gains tax and move On but the issue is going to be like Does that align with cryptocurrency in

Its principles in the first place I've I've talked about this before in this Transformation when and the Transformation I I reference here is the Digital Financial transformation that is Kind of what we're going through whether That end up being cbdc or Bitcoin is yet To be seen or any other cryptocurrency Insert here if you're an altcoiner The transition is going to be difficult Regardless and there will be examples That will be made by government Institutions whether that be the United States government the Chinese government The Canadian government doesn't really Matter because it does end up being a Threat at the end of the day to your Governments and to your traditional Financial institutions and so if you Expected all of this to be a smooth Transition into some beautiful Utopia I Hate to break it to you that's not the Way it's going to play out Now we could go down the lines of like Well if you're participating and this is Kind of how I look at it if you're Participating within the traditional Financial institutions within fiat Currency right and you're you're moving From crypto into Fiat at that point just Consider it just as you would if you Were going into Canada and trading your US dollar for Canadian dollar you are Now you know part of those rules of

Course you won't get those taxes that You paid back as you leave the country Right but you are participating in a Different system so expect to have to Actually pay to participate within that System the question then becomes when do We start to see a ripple effect within Cryptocurrency that shifts people into The shadow economy and is that even Possible I talked about this with Daniel Keller on our interview or the interview I had with him the most recent one and We talked about the shadow economy with Cash for you know anybody that's Receiving tips essentially the cash Transactions to avoid uh any sort of Additional tax on that the ability for An individual to give another individual Some dollars without the interference of A third party and crypto in general was Supposed to be the digital form of this But that does mean that if you're going To perform that you have to go you know From a crypto a crypto wallet you Control that's never touched preferably Right at the end of the day any Centralized exchanges that have kyc Attached to them to another crypto Wallet that is controlled by the Individual you want to send it to Without once again any relation to a Centralized exchange or a program or Piece of software that has been kyc'd And that is going to be the next attack

Vector that really is pointed out here I Think that's why you'll see the Government's start to talk about tax Evasion being a big problem here and if They can't get the the public to back That right then they'll move into more Fear-mongering along the lines of well It's being utilized for drugs and crime Etc and so you'll see this natural Progression go through that and as they Start to try to enforce it they will Make individual examples I've talked About this before the hard part ends up Being is you turn into this similarity To maybe like the the War on Drugs which Was unsuccessful the the you know This this correlation where you end up Having government agencies dumping tons Of money and spending ironically the tax Dollars that they're trying to recover To recover more tax dollars and it just Ends up being a vicious cycle all Meanwhile taking care of their own Pockets by printing more and more cash In US dollar and devaluing the money That you've worked hard for in hopes That you could secure your future in Some form or fashion for when you retire Or for future Generations Etc thanks for Checking out this clip from the crypto Mining show you can check out the full Episode here or more crypto content down Here also I'd like you to check out my Locals page at son of a

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