Slack-Jawed Yokel – Crypto FBAR

Slack-Jawed Yokel – Crypto FBAR

Slack-Jawed Yokel – Crypto FBAR – has managed to defy the odds and massively DISRESPECT HIMSELF YET AGAIN. A recent post on CPA Practice Advisor. The post is poorly written and manages to try to discuss FBAR while failing to grasp the implications of “US persons being taxed on worldwide income” with an obligation to report worldwide income as well as the existence of FATCA. Then the post fails to understand many of the underpinnings of cryptocurrency. It becomes obvious that Cletus is an abysmal failure with cannabis and cryptocurrency…perhaps he should try something less exotic, like almond trees.

Anyway, here are our comments that you help the post.

Slack-Jawed Yokel - Crypto FBAR disrespects himself again
Slack-Jawed Yokel – Crypto FBAR disrespects himself again

Slack-Jawed Yokel – Crypto FBAR disrespects himself again

Comments in an easier to read format:

1: Stupid…you focus on FBAR, what about FATCA? FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer’s annual income tax return. The reporting threshold is higher for certain individuals, including married taxpayers filing a joint annual income tax return and certain taxpayers living in a foreign country (see below).

2.: Spell it out cryptocurrency – a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. … [2]

3: 1.Under IRC Secs. 7609 (c)(3) and 7609 (f), a John Doe summons is a summons that does not identify the person with respect to whose liability the summons is issued. The Internal Revenue Code authorizes the Service to issue a John Doe summons pursuant to..a. n[3]

4: The U.S. government imposes the income tax on U.S. persons based on their worldwide income. The following are considered to be a U.S. person for tax purposes:•A citizen born in the United States or outside with at least one parent who is a U.S. citizen     … [4]

5. : Once again, the issue is a stupid one as even if the FBAR filing isn’t required, that doesn’t change the fact that any income earned by a US person is still subject to tax…so not filing the FBAR does nothing to remove the obligation to file and report the income.

6: In 2014, Rod Lundquist, a senior program analyst for the Small Business/Self-Employed Division indicated that the IRS would not require Bitcoin to be reported as part of FBAR. He elaborated by adding that that “FinCEN has said that virtual currency is not going to be reportable on the FBAR, at least..f.o[r5]

7: taxpayers could align their handling of Bitcoin to comport with that of gold, hard currency and real estate. That is, these assets are generally not reportable for foreign account purposes when held directly, but become reportable when they are stored in a foreign financial account. Under this… [6]

8: What about private blockchain, stupid? A private blockchain network requires an invitation and must be validated by either the network starter or by a set of rules put in place by the network starter. Businesses who set up a private blockchain will generally set up a permissioned network.

9: Perhaps you might learn how to write a definition liks – A Bitcoin wallet is a software program where Bitcoins are stored. To be technically accurate, Bitcoins are not stored anywhere; there is a private key (secret number) for every Bitcoin address.

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