Circle Notifies Customers About IRS Investigation into $20K Yearly Transactions

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diamond_2020Legendary
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#1Jan 29, 2025, 12:31 AM
A bunch of crypto advocates are saying that Circle Internet Financial has started contacting customers regarding a summons they got from the IRS. According to Circle, they have to hand over records related to U.S. taxpayers who made transactions of at least $20,000 each year between 2016 and 2020.
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1t5_omegaHero Member
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#2Jan 29, 2025, 02:56 PM
Is there no statute of limitations on tax liabilities in the USA? In other countries the statute of limitations expires after 4 or 5 years, so for the tax authorities to ask for 2016 data at the end of 2023, almost 2024, would not make sense. On the other hand, the $20K threshold is fine because the more modest ones get off the hook, although they usually do it that way because investigating smaller amounts is not profitable for them.
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diamond_2020Legendary
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#3Jan 29, 2025, 07:08 PM
I am not a good expert on US tax law, but I know that in the USA there is also a 3-year statute of limitations for tax obligations, just like in Russia. But there are exceptions. If you underestimated the tax by 25 percent or more, then this period is extended to 6 years. If you did not file a declaration and hid your income, and therefore did not pay taxes, then you should be afraid of the tax inspectors for a long time. There is no statute of limitations for such crimes.
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lonewhaleSenior Member
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#4Jan 30, 2025, 01:38 PM
Do they mean any balance more than $20,000 during the fiscal year, or is the total number of transactions for each account $20,000 during a fiscal year? What data can they collect? I thought they were just collecting IP addresses?
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1t5_omegaHero Member
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#5Feb 1, 2025, 09:50 AM
Fuck man, if all you have to do is read the OP to get the answer to your question. And it's not like the OP is very long or that there are many answers before what you wrote: And where do you get that from? Not from the OP, and not from the linked article either. It's just that if you don't do the most basic thing, read before you comment, you can't have a conversation with you.
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diamond_2020Legendary
Posts: 1256 · Reputation: 6502
#6Feb 1, 2025, 02:46 PM
No need to quarrel, please! The only reason I share articles like this is to get you thinking about the future now. I have already said that many mixer algorithms that are reliable now will be easy to read in 5 years, and all centralized services will even transmit data to your tax authorities.
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