Silk Road forums
Discussion => Security => Topic started by: minshara on July 23, 2011, 10:47 pm
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I've been reading up quite a lot and I've come to the conclusion that with the whole way that the Silk Road marketplace is set up the seller is in the safest position of all if she knows what she's doing 8). With bitcoin mixers/exchangers, and making sure you never use a bitcoin address more than once and you never, ever, do the same thing twice (i.e. develop patterns, use the same mail drop box every time) it's almost impossible to get caught. However one thing still bugs me. Once you have all bitcoins so mixed up that there's no way anyone can tie you to the illegal activity of selling, you're going to either spend those bitcoins on something, or exchange them for another currency to be deposited in your bank account. This is where the trouble comes, how do you explain to the tax man where all that extra money is coming from, because you KNOW they are going to be on top of it. Even if you deposit below the federal reporting limits you still risk a lot in being exposed this way. Please excuse me if this seems really noobish, but I figure it's okay to be paranoid when the government really is trying to get you.
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Two things.
1: Wash your money through an Online Casino so if there are ever any questions you can claim you are a professional gambler. You'll have to then pay Tax on your "winnings" but then the IRS would consider you legit.
2: Don't use a bank account. Convert funds to prepaid debit cards that allow you to withdraw cash from ATMs. No bank account, no IRS scrutiny.
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I have posted on this before. I am lucky in that my family has some overseas business, so I got set up with an unlimited-balance prepaid (and fully anonymous - only acct numbers and PINs) credit card. This bank accepts payments in virtually any currency, including a lot of the online ones like Liberty Reserve and Pecunix.
If you can try to find yourself something like that you can just pull the cash from an ATM ($2.00 fee per transaction on mine) or just use it to buy whatever like gas and groceries and all that fun stuff (no fees for POS transactions on mine).
Other than that Western Union is decent, I have friends that have used W/U for years and as far as I know that doesn't get sent to the tax man unless there is a red flag. You are not being noobish at all, because even if you are below reporting limits an audit will still turn up that you made X more than you declared, and the very least you will get nailed with a big tax bill.
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I have posted on this before. I am lucky in that my family has some overseas business, so I got set up with an unlimited-balance prepaid (and fully anonymous - only acct numbers and PINs) credit card. This bank accepts payments in virtually any currency, including a lot of the online ones like Liberty Reserve and Pecunix.
If you can try to find yourself something like that you can just pull the cash from an ATM ($2.00 fee per transaction on mine) or just use it to buy whatever like gas and groceries and all that fun stuff (no fees for POS transactions on mine).
Other than that Western Union is decent, I have friends that have used W/U for years and as far as I know that doesn't get sent to the tax man unless there is a red flag. You are not being noobish at all, because even if you are below reporting limits an audit will still turn up that you made X more than you declared, and the very least you will get nailed with a big tax bill.
instead of going through that much trouble couldn't you declare it as something else (i.e. bitcoin donations or payments for services rendered) and as far as western union goes wouldn't that require fake id?
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Most Western Union offices don't require ID below a certain amount (It's $500 at most of the local branches where I live). It's not really any trouble at all once you have it in your hand. if you declare it as payment for services rendered you still have to pay taxes. If you declare it as a gift you are only allowed a one-time tax exempt gift from your spouse and parents. After that you pay taxes too.
I am more disturbed by paying taxes than I could ever be about selling anything "Illegitimate". If you have any idea what kind of fucked up shit you are funding when you send in that money......
It's no trouble at all - I set up the account maybe 2 years ago. Have been using it ever since, just literally a direct transfer from LR or Pecunix online and within 1 business day the funds are in my account and on my credit card. And sorry I was wrong about the "no-limit", I checked it out and it's $250k limit. $3,000 daily cash withdrawal limit, and $35,000 POS transaction limit daily. I guess it depends on what kind of money you are dealing with. If you were just getting an extra 500 or a grand in every month, then I would probably just use W/U out of town or across the city.
But once you start getting to a point where you can get really hurt by the state for doing private business, it's best to keep it private. They only way they could ever find out about my money is if they stole my card and knew both of my PINs or have a sneaking suspicion if they broke into my house and managed to search out the cash.
Well worth it to me. The money doesn't exist as far as they are concerned.....
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thx for all the great info, I've noticed you're one of the most active members on this board. I'm not even going to become active in SR any time soon, just planning for the future.
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Welcome to the community :)
If you have any questions about other things there are some really good topics and a few of us try to help out the newcomers. Also PM works if I'm around.
Cheers.
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I am more disturbed by paying taxes than I could ever be about selling anything "Illegitimate". If you have any idea what kind of fucked up shit you are funding when you send in that money......
Amen to that, if there is a god i hope he forgives me for ignorantly funding the dropping depleted uranium bombs on men women and children, if you've seen the deformities caused to new lives by by our tax money :(
Birth-defect rates in Falluja have become increasingly alarming over the past two years. In the first half of 2010, the number of monthly cases of serious abnormalities rose to unprecedented levels. In Falluja general hospital, 15% of the 547 babies born in May had a chronic deformity, such as a neural tune defect – which affects the brain and lower limbs – cardiac, or skeletal abnormalities, or cancers.
fucking sad :'(
I choose not to earn enough to pay tax, lifes a struggle but its nothing compared to a lifetime of coping with a genetic deformity. Paying tax makes me sick to my stomach.
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yea fuck taxes and their trillion dollar war. this forum makes me feel at home.... we are not bad people... they are the sick ones.