Can IRS track Bitcoins

[Erik4150]

According to the IRS, when a bitcoin is mined, the miner is supposed to keep track of what the asset was valued at on that day, and subsequently treat that value as income. Miners that are engaged in a trade or business are subject to ordinary income, plus self-employment tax.
But when a miner doesn't keep track of his bitcoins transaction, can the IRS do it for him

 

[BrolySSJ]

I am not sure if this will be possible for the IRS to keep track of the bitcoin mined. Perhaps if they are able to track the IP address of the mining rig they would of course be able to track the person that is using that rig, however to actually track the number of bitcoin that is mined is a lot harder without having a direct link to the blockchain which i am not sure they will be able to obtain. This is why bitcoin is considered to be attractive as it presents the user with a degree of anonymity.

 

[Ltherman]

Due to the decentralized nature of the blockchain where no one person has control over the blockchain and its not like a system where the government can track your personal wallet to see how you transact or what tou earn.

 

[Erik4150]

I am not sure if this will be possible for the IRS to keep track of the bitcoin mined. Perhaps if they are able to track the IP address of the mining rig they would of course be able to track the person that is using that rig, however to actually track the number of bitcoin that is mined is a lot harder without having a direct link to the blockchain which i am not sure they will be able to obtain. This is why bitcoin is considered to be attractive as it presents the user with a degree of anonymity.

You are correct, the only way the IRS can track bitcoin is through the IP address of the miner but then the restrictions blockchain put in place will prevent such tracking.
I think the only way they can track it is if the miner provides his personal cryptocurrency wallet information.

 

[BrolySSJ]

You are correct, the only way the IRS can track bitcoin is through the IP address of the miner but then the restrictions blockchain put in place will prevent such tracking.
I think the only way they can track it is if the miner provides his personal cryptocurrency wallet information.

What are the measures that have been introduced into blockchain to prevent them from tracking your IP address? Would they not be able to get your Bitcoin wallet from the blockchain and then making use of this, as this then becomes public information, they can then see which IP address accesses the wallet that is associated with that IP, and then I turn to be able to trace down the address? How does blockchain prevent this?

 

[ahmedo24]

The full meaning of IRS should have been stated whole creating the thread , not every is conversant with IRS, personally I don't know the full meaning for me to be able to contribute effectively . Every miner is usually focus when it comes to the bitcoin he has spent resources on to mine.

 

[Ralphjoe]

The subject of Bitcoin mining is an interesting subject to me, know all these, I think any miner that fails to track the value their mined coins are not serious miners because a miner should have the necessary tools to be able to keep track of their mined coins.
The anonymity that cryptocurrencies provides will make it almost impossible for IRS to track unless if the user gives out very personal information to them, that is not advisable.

 

[Nomad]

I do not know if mined bitcoin can be tracked but it is very possible to track a bitcoin transaction as every transactions are stored on the bockchain for public viewing.

 

[Kelly5]

The cryptocurrencies is a different kind of new normal in the financial arena. It is not like other businesses where IRS tracks earnings easily. There will have to be a new form of arrangement to handle crypto

 

[GIFTMICHAEL]

It is traceable someone this days. The government still has advanced tech when they feel like it is very ideal to track than criminals that stole funds hiding via Cryptocurrency.

 

[Grant]

No, to my knowledge the IRS and really, no one else can track the currency. That's why it's used in a lot of nefarious things. And, it's also why the governments around the world are a bit worried, because Bitcoin and most other online currencies, are either tough or impossible to crack.

 

[Josemendez]

I do not know whether it can be possible with IRS but I believe that there is no need to track it as the miner can still figure out his total earning through calculation of previous earning against the last earning

 

[Sotherefore]

I don't think so this will be quite difficult to some extent. Probably they can track the address of a Bitcoin in solder and not the to keep record of bitcoins being sent to them.. I don't know maybe IRS are more advanced now to carry out complete tracking