IRS to crack down on Bitcoin Tax Evasion

This is one of the more funny “news” articles floating around the web today. Financial Times has reported that Bitcoin and other virtual currencies are going to come under closer scrutiny in the days ahead as they are an apparently attractive avenue for those seeking to evade taxes.  

This is an interesting premise because last time I checked the IRS was failing horribly on this front when simply tasked with chasing a cash trail. Now the IRS is going to attempt to track down and catch red handed individuals utilizing Bitoin, a far more anonymous monetary instrument than cash. Tax evasion is basically what the enlightened call creative accounting or “Tax Shelters” . Apple Computers has mastered it and even presidential candidate Romney has apparently caught the tax shelter bug. 

To what end does the IRS hope to counteract the Tax Evasion if any that is occurring utilizing Bitcoin? I’m curious how many Bitcoin experts the IRS employs and how much money it is costing them to try and prosecute alleged Bitcoin tax evaders. This whole things smells like a bad PR smear campaign rather than anything based in reality. 

Team Bitcoin personally hopes the IRS spends a ridiculous amount of time and resources trying to chase alleged tax evading Bitcoin ghosts. 

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