Do we have any CPA's onboard who can verify the veracity of his statement?
Discussion
Think about it. Is the IRS attempting to tax your relative when you give a relative $50 in a Birthday card? No. I’m sure if you happen to accrue a huge amount of Bitcoin you are going to have to report it, especially if you move it to an exchange and sell. But if you are just zapping micropayments and getting zapped it evens out. If you never try to cash out via an exchange, they have no idea you even have sats. Worst case scenario if they find out you get a letter requesting you pay them some tiny amount. Sats micropayments are nothing to worry about.
It would be better to manage your BTC and SATS in a way that is fungible. The IRS won’t know what you don’t tell them. Use a VPN and TOR on your transactions. Uncle Sam has enough wealthy patrons.
I'm not satisfied with that answer either. This time think about it another way. IRS knows you have digital assets and how much and at what cost basis. If you reported your crypto as prescribed by IRS codes and law, then as you dispose of any or aquire any, you must account for it on first in first out basis. Right now these micro payments are roughly 3000 Satoshi's to the dollar. Meaning 69 SATs zapped is a fraction over 2 pennies if my math is right. Now transport yourself 10 years into the future where BTC is $3,000,000 each. Now satoshi's are 100 x more valuable than today. That same micro-transaction is worth $2.50. Satoshi's are going to be 30 to the dollar. In the eyes of the IRS a few thousand satoshi's here and there as up to real money and they want their cut.
The peer to peer aspect is irrelevant. It's property. It's either acquired or disposed of for goods, services, other property, securities, shit coins, staking for interest, or fiat. In my understanding, all those tax are events.
But what happens when your friend pays you $10 for Pizza? Do they come after you? I would not worry about anything over $600. That is the limit they have on Venmo in which transactions have to be reported. The IRS is going to have an awfully hard time coming after people for micropayments made in 2023 in 2030. They don’t know what you don’t tell them. If they ask about it, you can always just say you lost the wallet. Oops, boating accident. Lost my passwords, etc. There is no taxable event until you exchange for cash with a KYC operator. The good KYC operators keep track of everything for you and send you a tax form at the end of the year. So you don’t even have to track it, if you choose the proper soft wallets they will track everything for you. But if you are tipped sats and then you tip someone else those sats, you are not taxed on that. It’s such a tiny amount who cares. Trust me, you’re not going to go to jail for micropayments, and you will never owe them a huge some if you can’t access them 🤷🏻♂️😉
Hey Gary. If you never exchange them for dollars it’s not a taxable event. I zap people, they zap me. The IRS knows nothing about peer2peer Bitcoin micro transactions. If the IRS wants to slave to collect $30 in taxes good luck 👍 🤣