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Comment by ed_elliott_asc | Hacker News Reader

Can’t the people who have the money just pay the tax themselves? Seems like the easiest way to keep the money and stay on the right side of the threat?

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So it would seem.

EDIT: Also profitable, taxes should be less then 90%. Just out of curiosity, isn't DeFi motivating users to defraud the IRS by promising 10% without reporting it as income?

EDIT: Come to think of it, if they are offering 10% without reporting to the IRS, which is obviously less than after taxes, would it be reasonable to assume all revenue / profits have not yet been reported to IRS as revenue?

Cryptos used for tax evasion!?

Who would have thought, right?

How tho? How can i get my crypto into dollars without paying tax or using an offshore business that facilitates the tax evasion.

You're probably unlikely to have anyone knowledgeable lay out the exact means by which crypto can be used to evade income taxes, but it's a pretty well known that it's used that way.

They setup a company in an offshore country like vanuatu and use an offshore bank to change the crypto into dollars avoiding capital gains tax etc, but its the offshore company and bank that facilitates the tax evasion.

Just because every one thinks they know how it works doesn't mean they know how it works, thats why I am questioning it. The truth is its pretty well known how tax evasion works but it doesn't use crypto.

> it's a pretty well known that it's used that way.

Michael Morell, a former acting director of the CIA, has some things to say about the use of BTC in crime:

> Based on our research and discussions with industry experts, I have confidence in two conclusions: • The broad generalizations about the use of Bitcoin in illicit finance are significantly overstated. • The blockchain ledger on which Bitcoin transactions are recorded is an underutilized forensic tool that can be used more widely by law enforcement and the intelligence community to identify and disrupt illicit activities. Put simply, blockchain analysis is a highly effective crime fighting and intelligence gathering tool.

Source: https://casebitcoin.com/story/former-cia-director-finds-bitc...

Leshner isnt the “CEO of DeFi” and Compound doesnt represent anything either.

Why even bother trying to make a mountain out of a molehill? You are building on a red herring.

Anyway thats a lot of idioms

It’s not revenue and not reportable until you exchange the tokens for fiat currency (I.e. sell it)

That is completely wrong. Income is anything of value, not just cash. If you find a gold nugget in your yard, you have to pay taxes on the value of the gold even if you never sell it.

This all depends on juristication. You are correct if you implied the US AFAIK, TedDoesntTalk is right in e.g. Germany.

And even within the US this is true for the IRS but may or may not be true for the state in which the person lives.

They still owe the IRS regardless of state they live in though

That's what I said.

Yep, nothing stopping anyone from keeping the funds. But we've seen other shenanigans in the past (forks, CEX involvement, etc) to paper over these mistakes.

Could the users sell now if they haven't already?

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