U.S. tax laws and my uncensored opinions on them

in #tax6 years ago (edited)

OK so who's been stressing out about filing your United States tax return this year? Anyone? I bet a lot of you have been! I got some relief this morning when I saw my refund was approved...Ahhhhh! (huge sigh of relief for me!). It's going to be OK. At least until next year...

aaaahhhhh.JPG

Before I begin this vulgar tirade that is my opinion about US tax law, the federal government, and the IRS itself, allow me to provide some links to those of you who might be still searching for info on how to report your crypto gains / losses but might not want to be subjected to my profane and vulgar language that follows...

Potential resources

BEFORE YOU READ ANY FURTHER, let me say if profanity and vulgar language offends you then you need to STOP READING at the end of this sentence. <-----AGAIN, Stop reading here if you don't like profanity, because it's about to get nasty up in here.

My Problem with the current taxation laws: The IRS changed the tax laws this year at the last minute like they do every year and it affects every single person here on steemit and anyone who has bought and traded / sold cryptos

If you're not stressed out by US tax code and you're on steemit, you might not have been paying attention to the elephant in the room -- the IRS policy on crypto being considered PROPERTY and not currency or even a security like a stock (rolls eyes). Yes, we love the IRS and their multi thousand page fucking tax code don't we? Well they made it infinitely worse back in December 2017 for crypto traders and investors with their new laws regarding what they consider cryptos to be and how we are supposed to calculate what we owe them (again, property?? Really Guys?).

Although this is one of the dumbest fucking things I've ever heard in my entire life, it did not surprise me one bit because it is the US government we're talking about. They don't give a fuck about you, your family, your well being, your life or your supposed liberty and right to pursue happiness. Most of the aforementioned (life, liberty and pursuit of happiness) are all things that the founding fathers TRIED to guarantee for US citizens after they fought a bloody revolutionary war in the 1700's to escape this kind of tyranny. What I see going on in the United States today is as follows and it ain't pretty...it's downright evil if you ask me. And it's all funded by you the taxpayer.

  • taxation without representation--who are you kidding if you claim the interest of the common person is represented by our politicians? Those fuckers are bought and paid for by wall street, big corporations, and the ultra rich
  • Appalling intrusion into citizens' personal lives by an all powerful government that fancies itself as more powerful than God himself (if one believes in such a being)
  • Undue and unfair burdens are placed on the individual by the federal government whose powers I might mention were NEVER intended to be this far-reaching
  • Serious crimes and injustices are being committed against other countries and the citizens of other countries by the ever-meddling U.S. war-machine and never ending covert spying that's perpetuated by said government which is funded by OUR tax dollars (drone strikes on countries we're not at war with, murdering U.S. citizens abroad, murdering foreign citizens, imprisoning citizens and non-citizens alike without due process, the NSA spying on other world leaders and everyone else on the planet for that matter...just a few nice little examples here)

The Burden on the U.S. Citizen

WE THE PEOPLE are basically considered guilty until proven innocent when it comes to reporting our income, gains, losses, health care coverage (???????), etc. (like that should all be the IRS's damn business in the first place). Every year I feel like I'm getting fucked in the ass by a ten foot pole courtesy of this monster just due to the time I have to spend calculating my taxes, filing the return, agonizing and worrying about whether or not I missed anything and if the US government will decide I'm cheating them and send me to a federal-pound-me-in-the-ass penitentiary.

Although that is very unlikely, they could if they wanted to (if I missed something on my return). The thought of being audited by the IRS terrifies me as I know people who have been through this horrible experience--very smart people who are far more versed in tax law and accounting than I am. If it was that bad for them, I'd surely have to hire an attorney to represent me if I ever were to be audited. That's expensive and I shouldn't have to worry about such things because I do my best to report my tax liability. I work hard and I pay my taxes. I don't even mind paying taxes but why does it have to be so damn difficult and awful of an experience? I am distressed by it all a bit more every year that passes.

So you can imagine my relief when I used the IRS "where's my refund?" tool https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp and gazed upon the stated approval of my refund by the IRS this morning. In years past I've had to refile because of some stupid mistake and the approval status just sits there for weeks and week unchanged and I was afraid that might be happening this year. Thankfully this isn't the case this time around.

Now that the refund has been "approved" I feel like I'm a bit more in the clear in regards to the IRS's 10 ft dick being brandished and thrashed about in such an intimidating manner (the new crypto tax laws and the reminders that we'd better pay up or else). I want no part of that shit. Ever. I'll pay them what I owe them, I've never claimed I won't, and I don't think I should have to live in fear of my government. But I do.

OK cryptokeepr, so you hate the IRS and you sound like an angry psychopath, what's your point?

Fair enough, maybe I am an angry psycho at this moment and thank you for asking...On to more of the point that I'm trying to make here.

There are people who ARE LITERALLY LEAVING THE COUNTRY partially over this issue and the fact that they're scared to death of the IRS and the government in general just like I am. Luckily I didn't get into BTC or ETH when they were dirt cheap (the irony of this statement does not elude me) so I'm a small fish in the eyes of the man, but in the coming years that might not be the case as I've got semi-significant crypto holdings now that could turn into life-changing money in several years. That would be amazing if it happened but then I'd surely be targeted by said entities for an audit like early bitcoin buyers are being targeted now.

I know it's been a worry in the back of my mind for a few months now that they've put these onerous tax laws into place. The worst part about it is that during this tax season, most accountants and tax professionals don't even know how the hell to report crypto gains and losses! So even if you were to go to your local H&R Block or some independent accountant or whatever, they'd probably say "we're sorry, you're pretty much fucked and we can't help you because this is all so new and we don't understand the technology and how the tax law affects your return, and blah blah blah"....End of story. You're on your own.

Yes, even many of the tax professionals are confused by this regulatory horse shit. So how is the average person to know how to comply with the new rules??

I don't have the complete answer to this. It depends on your situation. I'm not going into what I reported on my return this year or how I did it because honestly I fear that could open a pandora's box that I might never be able to close due to many possible reasons.

Again, there are people here on steemit and outside the platform who have done research into this issue as it relates to US taxpayers and they have posted about the subject at length. I provided resources for people who are struggling to figure out how to comply with the onerous regulations at the beginning of this post and hopefully it might help someone. If not then I hope some of you were at least entertained by my colorful and foul language.

So in closing, let me ask and plead that you, the citizens of the United States, do the following thing for your country, your friends, your family, your own well being, and perhaps even the rest of the world

Next time you go to vote, don't think that voting for a third party like Libertarian or whatever party or person you think has your best interest at heart is a waste. If enough of us do it, we could eventually bring about meaningful and good change in this country. It is a long shot but it's up to us. This is all we can do. We could not possibly win a bloody physical fight against the might of the behemoth that is the federal government like our ancestors did against their oppressors over 200 years ago. They're just too powerful and they have unfathomable resources and firepower to direct at any opposition.

EDIT: Allow me to admit I've voted at least once for each of the two major parties in power at some point in my life and this is not meant as me trying to shame anyone for voting for either of the two major parties. That's entirely your right and I respect your choice no matter what it is / was.

But if we do manage to elect politicians (especially to congress and the senate and at the state level) who represent our interests, we could slowly turn the tides. If the states had a constitutional convention and put term limits on the House of Representatives and The Senate, it could end the existence of career politicians--lifers in DC who have way too much power. It could put reasonable people in power who aren't already corrupted and owned by dark and powerful forces such as wall street, google, and entities like that.

And maybe, just maybe, in my lifetime I could have a year where filing my taxes doesn't feel like one of the most stressful things I have to do all year.

Thank you for reading and best of luck to all you US citizens trying to get your taxes done before the looming deadline comes and goes. I hope my rant was entertaining and didn't offend anyone too badly.

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"If enough of us do it, we could eventually bring about meaningful and good change in this country."

Why would those who profit off the government, vote against their interests? The system is profitable for many, and I think you underestimate just how many industries are in bed with the gov.

When you really dive into the numbers and start to get a grasp on just how entrenched and embedded the gov. is into the fabric of society, you will have no choice but to conclude that that only rational thing to do is to abstain from participating in the crooked system, and go in search of greener pastures somewhere else.

Yeah that's definitely one way of looking at it...it may be a lost cause as you've said and it does seem pretty hopeless. You have the corporations who own the govt and then you also have tens of millions of leeches who get handouts from the government every month so they'll vote for the people who will keep paying them to sit on their asses, do nothing, and add no value to society. I'm not saying everyone who's getting a (non-social security and non payroll) govt check every month is gaming the system or is a leech, there are those who are truly in need, but there are many able bodied people who've made a lifestyle out of it (government assistance) and that was never supposedly the intent of the "safety net". But who am I kidding, the more people who are getting handouts, the more people will keep the same system in place. So I see your point in abstaining and turning tail and running from this police state....

I'm honestly planning on retiring somewhere that it's cheap to live and less of an oppressive police state in the next 10-15 years. Until then I'm kind of stuck here so I might as well try and make the best of it.

Keep in mind that your tax return being approved and getting audited are two separate things. You can get audited at any time, from what I understand. I hate to crash your celebration :/ but you seem to be the kind of person who appreciates truth :). I always use a well-known online tax prep company, but this year was the first time I paid the extra premium for legal representation if anything goes wrong. I had no idea if I filed correctly, so I am just making sure I have enough liquid assets to cover the cost of any amount I might owe due to my mistake. For anyone concerned, what usually happens is the IRS simply informs you that they believe you made a mistake and you now owe X amount (plus interest). You can then respond with an argument for why you think you did not make a mistake. I made a significant mistake one year and simply paid the difference. Another year I made a mistake, but the IRS also made one, and I was able to make good on the one part while also getting their okay on the second. As much as I agree with your tone here (expletives included) the IRS will give you a chance to respond in good faith.

I appreciate the honest advice and sharing of info. I have done a simple refile more than once and the IRS accepted it in both cases...and like you, one time was my mistake and another was their mistake. I know I made some pretty sensationalistic arguments here and some fears I have are worst case scenario and usually the IRS is pretty patient and allows a person time to respond. I just think we need a simpler system.

As far as not being in the clear on an audit in the future...yeah that doesn't surprise me. I was just happy that I have a reprieve for now from worrying about the return even being approved. But don't worry, you didn't spoil my little celebration :)

Thanks again for your thoughtful feedback.

Excellent post and I empathize 100%. I am a small business owner and dread this ass raping every year. In a system where it’s standard practice to find every loophole and game the system as much as possible that system might be broken.

I look at crypto as a weapon to cripple the current tyrannical system. Encourage people to not drink to partisan koolaide and vote for a libertarian candidate. If that happens we the people might actually stand a chance.

Great post. Also you didn’t use near enough profanity.

Right on brother! That's awesome that you have your own business but I understand that means you have an even worse tax filing burden to bear than most people. The tax aspect is just one of many reasons that I continue to work for a big company even though I'd like to get away from that and do my own thing for a living some day.

I'm also happy to hear that some people appreciate the profanity. I think it's necessary to truly convey my message and I enjoy swearing very much lol.

Hopefully someday we will have a system that is fair and easy to work with...I won't hold my breath but I'll keep my fingers crossed.

Not an American here, but I’m nervous about filing taxes for obvious reasons this year, myself. This year will be different than any other tax return I’ve ever filed.

I keep telling myself: No mistakes..... no mistakes.....

Yes a lot of governments are getting their greedy paws into the crypto world hoping to boost their income and they're making it very complicated to comply with their tax laws in many cases. They want their cut and they really don't care how badly they inconvenience the average person in terms of reporting taxes.

Sure looks like it. I’m writing down all my crypto transactions from here on in, that’s for sure.

IRS coming for me 60 Doge transaction :(

See that's a good point too...we even have to report SMALL transactions that are worth tiny amounts. What a waste of time. I doubt they'll be going after anyone over small stuff like that...yet. But eventually they may have some way of getting data on nearly every single crypto transaction that takes place on the web kind of like they do with stock brokerages who have to report all trades, dividend payments, etc for every person who trades or sells a stock or derivative...actually the NSA already does have this much power and reach but to my knowledge the IRS isn't using it for their own benefit (yet).

Yes, I mean of course I was being dramatic about "60 Doge coin" but that's somewhat realism, IRS going after the little things.

Oh I have no doubt they’ll chase down small transactions eventually, especially thru purchases of goods made using cryptos.

Yes true that.

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