cryptocThe Internal Revenue Service is summoning its “pound of flesh” from Bitcoiners who use a popular online Bitcoin exchange known as Coinbase.
According to reports, a federal judge in San Francisco recently ordered Coinbase to hand over to the IRS information on more than 14,000 Coinbase users from whom the collection arm of the private Federal Reserve Bank apparently intends to collect tax revenue.
Despite its meteoric rise to success over the past several years, Bitcoin has generated very little in the way of loot for the IRS. That’s because only between 800-900 people have reported gains associated with using Bitcoin between the years of 2013-2015 – a number that the IRS feels is too low.
So the thieving collections mafia is hoping to extract information from Coinbase on people who profited from Bitcoin during these years in order to threaten them into paying up their “fair share.”
While the IRS had initially demanded that information on all of Coinbase’s 13 million users be handed over, it backed down after Coinbase executives basically said no way. The IRS then agreed to only collect the names, dates of birth, addresses, tax ID numbers, transaction statements, and account logs for account holders who bought, sold, sent, or received at least $20,000 worth of Bitcoin in a given year.
The move has left many Bitcoin skeptics spooked, including those who had hoped that Coinbase wouldn’t sell out to regulators. While the company did fight back, the IRS said it right when it publicly boasted that the new agreement represents a “partial win.”
The IRS has been trying since at least November 2016 to collect personal information about people who use Bitcoin. The corrupt agency has even gone so far as to demand wallet addresses and public keys for Bitcoin users, a request that Coinbase similarly rejected.
“While the court granted a narrowed version of the IRS’s original request for Coinbase customer data, we remain deeply unsatisfied with the lack of justification provided by the IRS,” reads a statement issued by the legal research and advocacy group Coin Centre.
“Without better rationale for why these specific transactions were suspect, a similarly sweeping request could be made for customer data from any financial institution. It sets a bad precedent for financial privacy.”
In other words, neither the federal government nor private collection agencies like the IRS currently have any jurisdiction whatsoever over Bitcoin or cryptocurrency at large. Legislation could potentially be passed to change that, but right now Bitcoin is the people’s coin.
And this is exactly why the private central banking cartel is in panic mode. Because it realizes it holds no legitimate control over Bitcoin, the “man behind the curtain” of Wall Street and the Federal Reserve are freaking out in desperation over how to steal as much as they can from the Bitcoin boom.
Keep in mind that the government is notorious for staging so-called “public beheadings” in which it makes an example of an individual or company for the purpose of scaring people into not buying or using something that it wants to see made illegal – whether this be plants like cannabis and mitragyna speciosa (kratom), or decentralized currencies like Bitcoin.
But if the government attempts this, it will be communicating to the world that it has no regard for the law and is definitively an enemy of the people.
“I read the 400+ pages of the proposed tax code. How many lines in there do you think deal with cryptocurrency? ZERO,” writes the “Sovereign Man.”
“How many lines deal with e-commerce? ZERO. The government had every opportunity to set the rules for the 21st century. And they failed miserably. So the rules remain as clear as mud. Instead of trying to make it clear, their tactic is intimidation, force and coercion.”
Sources for this article include: