Bitcoin
How much does he owe from his Bitcoin earnings?
‘Bitcoin Jesus’ Roger Ver Accused of Tax Fraud: How Much Does He Owe From His Bitcoin Earnings?
Traders often forget about the capital gains taxes they owe on trading profits throughout the year.
But even if they forgot, almost everyone still pays taxes on what they earned. Most will pay them without a problem, but some will refuse to pay capital gains taxes. Roger Ver, also known as “Bitcoin Jesus”, is one of the traders who refused to pay taxes on his Bitcoin (BTC) earnings, which resulted in legal problems.
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Ver began purchasing Bitcoin in 2011. In early 2014, Ver and his companies reportedly acquired 131,000 BTC. At the time, the price of Bitcoin was around $800, so the position was worth about $100 million. Also in 2014, Ver obtained citizenship in Saint Kitts and Nevis, a small island country in the Caribbean, and renounced his U.S. citizenship.
“Ver was allegedly required by U.S. law to file tax returns reporting capital gains from the constructive sale of his worldwide assets, including Bitcoins, and to report the fair market value of his assets. He was also allegedly required to pay a tax – referred to as an ‘exit tax’ – on these capital gains”, according to the US Office of Public Affairs.
Ver hired a law firm and a business valuation firm to help with the tax document preparation process, but lied to the companies, which resulted in “false tax returns that substantially undervalued the two companies and their 73,000 Bitcoins and failed to report that Ver personally owned any Bitcoins,” according to the US Office of Public Affairs.
Fast forward to 2017, “the two Ver companies continued to own approximately 70,000 Bitcoins. At that time, Ver allegedly took possession of these Bitcoins and in November 2017 sold tens of thousands of them on cryptocurrency exchanges for approximately $240 million in cash.” , according to the agency.
Ver was legally required to report and pay taxes on certain distributions, even though he was not a U.S. citizen. He allegedly hid from his accountant that he had received and sold Bitcoins and did not report earnings or pay taxes on distributions valued at $240 million.
“In total, Ver would have caused a loss to the IRS of at least $48 million,” the U.S. Public Affairs Office concluded.
On a obscure post on X Last week, Ver wrote, “Don’t expect bad people to do good things.”
The story continues
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This article ‘Bitcoin Jesus’ Roger Ver Accused of Tax Fraud: How Much Does He Owe From His Bitcoin Earnings? originally appeared in Benzinga. with
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