It might only take the smallest cryptodust to trigger a US reporting requirement.
You don’t want to trigger 1099ks? Use zelle.
https://www.zellepay.com/faq/does-zelle-report-how-much-money-i-receive-irs
Oh that’s interesting… Apparently they’re exempt because the money never actually passes through them, they just facilitate direct transactions between bank accounts… Wish it would actually explain the why on their faq page directly, but there you go.
As a rule of thumb the IRS won’t audit anybody they can’t recoup more from than the cost of the audit. Maybe $20,000 maybe $40,000.
Obviously, the number should be on the higher end because now the IRS is short staffed.
Yeah this is the truth.
Bartender friend I knew bragged about how he always underpaid taxes. Guy was a UFO/lizard people run banks/illuminati kinda guy and even bought crypto and NFTs.
Well, he made big bank and quit bartending. Big show of it and bought everyone drinks for the whole night because he was practically a millionaire. (Assuming. Didn’t really ask)
But came back last year because he needed to make money and constantly blames the IRS for taking everything.
They also won’t audit you if your rich, so there is a nice middle-class sweet spot they can exploit. If your poor though, they may try to still come after you so they can throw you in jail for some of that cheap labor for tax evasion.
Under the Biden administration, as a result of the inflation reduction act, the IRS audited the rich and saw large increases in revenue as a result.
As part of larger efforts taking place, the IRS has stepped up activity specifically on 1,600 individuals whose incomes were more than $1 million per year and who each owed the IRS more than $250,000 in recognized tax debt. Since last fall, this IRS compliance effort has generated more than $1 billion in collections from this group, with work continuing in this area.
Thank you Mr. Trump for protecting the Millionaire and Billionaire class.
Under the Biden administration, the IRS made a concerted effort to target the wealthy, aiming to double audit rates for those making more than $10 million a year and launching a campaign to investigate private-jet owners. Now, especially with the potential dismantling of the Department of Justice Tax Division, the tax enforcement ranks are rapidly dwindling.
“The agency is like a zombie right now,” said Kathleen Pakenham, partner at Vinson & Elkins, who handles corporate and high-net-worth tax cases. “There is no brain in charge of what’s happening on the ground.” -NBC News
You know what happens if you fail to report some income? You get a notice 6 months later for the amount owed. That’s it. It’s no hassle at all.
It’s ridiculous that the US doesn’t send a tax bill to citizens like is done in other countries. You get the bill, amend it if there’s anything they missed, and send it back. If they know enough to audit you, they know enough to send the tax bill.
Yeah, but it’s not income if it’s a gift.
The reason the US doesn’t do that is thanks to lobbying by companies like Intuit and H&R Block.
