My brother in christ, KYC **IS** the list
Discussion
They want you to doxx 'unhosted wallets' also.
This is not true. Nothing related to the safe harbor FUD requires you to disclose anything to the IRS right now. It’s for having accurate records if you get audited in the future. And I dont recommend screenshots of your stack, there are other ways of making a verifiable record that you can reference in the future if need be. nostr:npub1s33sw6y2p8kpz2t8avz5feu2n6yvfr6swykrnm2frletd7spnt5qew252p just did two very good videos on this though I disagree with the screen shotting element.
I see, so you're supposed to produce a document doxxing your entire stack to be tendered upon audit.
This is better from a privacy perspective because it distributes the honeypot. The end game is no different. They will just audit everyone who paid a large amount of crypto capital gains. Now they have their handy dandy list of easy marks doxxing their entire stack, crucially including all the coins they didn't sell.
What are these "other ways" of producing verifiable records? I hope you weren't implying that screenshots are verifiable. They are trivially easy to fake.
A signed message from the pk controlling the UTXO is best, but I'm sure the vast majority of wallets do not support this feature. I don't know if it would even work for multisig wallets or those with complex locking scripts.
I agree photos are worse. I hashed the addresses into excel spreadsheet with the block height. Ie these are my utxos as of whenever and open timestamp the sprdsheet. Later it’ll be easy to show whether that was true or not.
I don't get why anyone would timestamp a UTXO. That is the entire purpose of the block chain.
The spreadsheet is time stamped but yes I agree the utxo should be self evident. The timestamp of the spreadsheet has more to do with the time stamped declaration of how you are treating your basis pre January 1 eg FIFO or LIFO etc which is included in the safe harbor package.
You only need to timestamp your intent. The allocations must be determined before you file your taxes.
That’s probably fair to say. FWIW we have gotten little guidance and the recommendation is to have a pre 2025 record of your holdings on a wallet by wallet basis. Who fuckin knows man. I really don’t have a clue what’s going to matter down the road. Hopefully we get some proper legislation and guidance so we don’t have to talk in circles anymore on about tyrannical uncertainty
Yeah they could have released a form or granted everyone automatic safe harbor. Or going further back they could have worked out cost basis guidelines a decade ago and made them clear. Instead we get this compliance nightmare.
The thuggishness of this whole process really grinds my gears. They are changing the rules post facto and demanding a blank check to bill you in the past based on rules that didn't exist yet. The only way out is to follow vague and Byzantine instructions and produce "proof" that you were paying attention to the right guidelines at the right time.
If only there were instructions really at all. As a lawyer I’m very very comfortable with onerous legal processes but what grinds my gears is the compete absence of instruction or process. For example we don’t even know what “safe harbor” means in this context.
If you are using universal allocation you need to prove wallet balance as of Jan 1, which is where people get ideas about screenshots.
As someone who understands a little bit about how bitcoin works this part just hurts my brain.
I’m with you honestly. But keep in mind this is about more than bitcoin it applies to all digital assets and a lot of degenerate shit coiners and people in DAOs and nfts have a much more complicated situation. For me btc in cold storage should be trivially easy to prove date of ownership down the road if needs be