<p>Governments can set up laws and regulations and then set up "departments" to monitor and enforce. </p>

<p>Whether it is successful or not is another question. No doubt they will have to skill up and understand how digital currencies really work, maybe monitor a few people, monitor the flow of their btc's and audit them, create some "high profile" cases to be made examples of etc. </p>

<p>One can draw an analogy with cash.</p>

CC BY-SA 3.0
2017-01-16T01:16:07.143Z
2017-01-16T01:16:07.143Z
cloudnthings
<p>The government wants you to convert back in the future, then pay taxes on capital gains and sales that follow.</p>

CC BY-SA 3.0
2017-01-18T09:53:52.620Z
2017-01-18T09:53:52.620Z
user34315
<blockquote>
  <p>Bitcoin is (...) anonymous</p>
</blockquote>

<p>You won't go to the governmental office to say you have created a wallet.
But they have huge control over your ISP probably and can check what are you send/receive to/from Internet... </p>

CC BY-SA 3.0
2017-01-18T13:55:17.243Z
VPN would "solve" this.
José Mendes
CC BY-SA 3.0
2017-01-16T20:49:19.757Z
2017-01-16T20:49:19.757Z
Sebastian Xawery Wiśniowiecki
<p>Bitcoin is decentralised and anonymous so how can governments issue /enforce taxes on any transactions made with bitcoin?  </p>

CC BY-SA 3.0
2017-01-15T22:45:06.497Z
How did the government issue or enforce taxes in a cash based society? By investigating people who seem to have more than they report.
Pieter Wuille
CC BY-SA 3.0
2017-01-15T23:04:04.883Z
very similar to http://bitcoin.stackexchange.com/questions/50699/how-would-tax-and-government-revenue-be-enforced-in-a-bitcoin-run-society
Nick ODell
CC BY-SA 3.0
2017-01-15T23:28:44.437Z
Yes, but we can't close as a duplicate unless one or the other gets an answer.
Murch
CC BY-SA 3.0
2017-01-16T00:07:50.033Z
I guess the answer is we don't know. As If the answer is, they can't then I'm sure they will have to make it illegal or how will government and society function.
Aaron
CC BY-SA 3.0
2017-01-16T23:00:07.440Z
The current IRS action is focused on transactions that earned money then were traded out for dollars, without declaring the capital gains.  So it is not the BTC that is being taxed, it is the dollar increase.
SDsolar
<taxes><government>
How can the government tax you using bitcoin
Aaron
# How can the government tax you using bitcoin

(Asked by: username_0 on 2017-01-15)

Bitcoin is decentralised and anonymous so how can governments issue /enforce taxes on any transactions made with bitcoin?

**Tags:** taxes, government

> **Comments:**
> **username_1**: How did the government issue or enforce taxes in a cash based society? By investigating people who seem to have more than they report.  
> **username_2**: very similar to http://bitcoin.stackexchange.com/questions/50699/how-would-tax-and-government-revenue-be-enforced-in-a-bitcoin-run-society  
> **username_3**: Yes, but we can't close as a duplicate unless one or the other gets an answer.  
> **username_0**: I guess the answer is we don't know. As If the answer is, they can't then I'm sure they will have to make it illegal or how will government and society function.  
> **username_4**: The current IRS action is focused on transactions that earned money then were traded out for dollars, without declaring the capital gains.  So it is not the BTC that is being taxed, it is the dollar increase.  

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## 3 answers

### Answer by username_5 on 2017-01-16. Score: 2

Governments can set up laws and regulations and then set up "departments" to monitor and enforce.

Whether it is successful or not is another question. No doubt they will have to skill up and understand how digital currencies really work, maybe monitor a few people, monitor the flow of their btc's and audit them, create some "high profile" cases to be made examples of etc.

One can draw an analogy with cash.


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### Answer by username_6 on 2017-01-18. Score: -1

The government wants you to convert back in the future, then pay taxes on capital gains and sales that follow.


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### Answer by username_7 on 2017-01-16. Score: -1

> Bitcoin is (...) anonymous

You won't go to the governmental office to say you have created a wallet.
But they have huge control over your ISP probably and can check what are you send/receive to/from Internet...

> **Comments:**
> **username_8**: VPN would "solve" this.  

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