Another ridiculous story illustrating how the USA government has become an unconstitutional tyranny…especially when it comes to controlling money and collecting taxes.
This story of undercover IRS agents trolling local BitCoin exchanges tracking traders of BitCoin for cash is just the most recent of many sad examples of how Americans no longer own or control their own monetary assets.
In this case, they accuse a Missouri citizen of running an illegal “remittance” exchange business…and the individual readily pleads GUILTY!? Thus is the power and threat of this non-government agency in backing citizens into a corner regarding a tax code of over 10 MILLION words that every USA citizen or company is fully responsible for complying with. If you can’t afford expensive tax advice and get caught not complying…you are simply guilty and can easily go to jail for the simplest of infractions.
Using this line of reasoning…the IRS may soon start looking to tax foreign currencies held by Americans when/if they gain value in the markets against the dollar. Of course, we don’t wish to give them any new ideas…
Is it any wonder more and more Americans are escaping to foreign domiciles where they can legally save on these many taxes…some of which are unconstitutional. Of course, the constitution has little clout anymore in determining legal proceedings in the USA as discussed in our last article.
So this incident instructs savvy Americans to simply keep their BitCoins and transactions outside of the USA and in currencies other than US dollars. In this way, the USA government loses its power to spy and tax that which they have no business taxing.
It also instructs us to be very careful who we trade Cryptocurrencies with. Americans should also realize that there are IRS agents in many foreign countries. It has been reported that in little Panama alone there are already 60+ IRS agents on the ground looking to impose the USA government’s will on Americans in foreign domiciles. We have always been very careful in dealing with Americans in these small LatAm countries based on this reality.
We believe that over time, the IRS and federal government will be challenged to prosecute the trading of cryptocurrencies since its courts have already determined that BitCoin is “not a currency”. With the crypto values changing so radically in short periods of time purely based on market emotions and perceived upheavals of traditional monetary systems, we think it will be very difficult for such courts and agencies to tax crypto holdings legitimately.
We hope the victim in Missouri will find some righteous advice to fight the charges spawned by the IRS. While they are powerful, there is still such a thing as due process of law at some levels of the USA system.