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The infrastructure bill passed by the Senate and now pending in the House contains an overlooked “digital assets” provision that would be a disaster if it becomes law.


HAL1000
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https://twitter.com/abesutherland/status/1438881314871156736

An amendment to section 6050I of the tax code imposes a new surveillance and reporting requirement on users of “digital assets”. This is NOT the much-discussed “broker” provision (tax code section 6045) that provoked opposition in the Senate. This provision requires recipients of digital assets (incl. NFTs) to verify the sender’s personal info and record their Social Security number, nature of transaction, etc. Then, the recipient must sign under penalty of perjury and send a report to the government within 15 days. All other tax code reporting violations are misdemeanors, but violation of 6050I can be a felony (up to five years in prison). 

So far, this proposal has escaped attention because it uses an old law that doesn’t fit with digital asset technology. The old law applies to in-person transfers of cash (physical currency) and presumes you can inspect the payer’s ID. Exemptions involving “financial institutions” mean that digital assets are stigmatized and use of banks etc. is entrenched — why risk fines or a felony under section 6050I? documents. The law’s relative clarity and limited applicability in the case of old-fashioned cash does not translate to digital assets. Compliance can be impossible. We need to draw attention to this issue. Congress should not vote on this without debate. If the consequences are debated openly, the amendment to section 6050I would be voted down. My full report is here:-

https://www.proofofstakealliance.org/wp-content/uploads/2021/09/Research-Report-on-Tax-Code-6050I-and-Digital-Assets.pdf

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It will pass.

That will set the goal post far off on the detrimental side of things. Then there will be a multi year fight to set another goal post as far as possible on the beneficial side of things. Then the weirdos in DC will play "let's argue about it", and eventually they will be forced to do what is best to preserve America's best strength... global dominance of the monetary infrastructure. 

That or we can just let China become the global reserve currency.

I'm standing by, waiting to see if I need to go ahead and move somewhere else that has laws. That, or I will have to work remote and never bring my XRP into the US, so there goes the cap gains tax revenue for the US govt.

I'm lucky in that I'm in a situation where I can go anywhere and do anything at anytime, but I want to get going and all this wishy washy BS isn't floating my boat. I'd prefer to stay in the US, but Damn it's becoming harder as time ticks, and I've traveled a lot, so I love other countries & cultures. Just not sure what to do.

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Its called shooting yourself in the foot. Sadly the US is a disaster area for Crypto developers, Gensler, and people like him, drive crypto out of the US but does the rest of the world care?  The US had the biggest slice of the Internet boom, this time it will be many countries across the world, including many that are third word status.  That might be a good thing?

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7 hours ago, WarChest said:

Holy handcuffs, Batman. The US is trying so hard to stop crypto ownership by Private Investors. Even if you move overseas, don’t you still have to pay US taxes? 

Yeah a good friend of mine works and lives in the UK, has done so for years, and *still* has to pay off the US govt. 

EDIT: That's probably income taxes though, not sure how capital gains etc would work. 

Edited by thinlyspread
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44 minutes ago, thinlyspread said:

Yeah a good friend of mine works and lives in the UK, has done so for years, and *still* has to pay off the US govt. 

EDIT: That's probably income taxes though, not sure how capital gains etc would work. 

Unless you give up your USA citizenship? 

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I'm not an expert, but you can apparently redeem FRN into lawful money per 12USC411 and legally avoid income and capital gains tax completely. This is not a tax scam as people have been doing this successfully for years with the IRS' full knowledge. But this is a process that requires deep knowledge of the law and how to correctly navigate the process - the IRS will crush you if you get it wrong for obvious reasons. Another good aspect is all redeemed money reduces the US national debt.

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