And it's much worse than paying 'back taxes'. The IRS puts you to work. They make you trace all your coins around the blockchain, asking for more and more information. A years worth of transaction data is not small. They will 'claim' this movement of funds is a taxible event even though you just moved it from your wallet A to wallet B, then you move it back, another 'claim' that it's income. So no they taxed you twice for the same event, which wasn't even a taxable event. Burden of proof is on you. Then eventually the agent gives up and you get assigned a new agent, start all over, picking up where the old one left off. Goes on for 3 years. All because you wanted to use lightning.
Really sounds awful. I sincerely hope you get it all sorted. Hopefully you learn some tricks and can come back to share your secrets.
There are no tricks, secrets. It's not a fair system. They make up the rules as they go. Want a tip? If you want to play by the rules then don't use bitcoin.
The value prop of Bitcoin is permissionless which is incompatible with white markets by definition.
If one is going to make transactions that follow the rules, there is little reason to have or use Bitcoin. In fact, it might even end up worse than just using fiat.
Oddbean new post about login | logout 