28 Mar '13, 2pm
US citizens to report BitCoin accounts over $10.000 to the IRS - a law proposal
The FBAR form was, in fact, born out of the 1970 Bank Secrecy Act. Its purpose — to help the Treasury Department (not specifically the IRS) to detect and cut down on financial crimes by making it an obligation for people who are hiding money to tell the Treasury department where they are hiding money (yeah, you read that right). These crimes it was intended to deter were drug smuggling and money laundering (not sure who else was laundering money but drug smugglers — hmmm — seems like it would be a lot easier just to legalize drugs?). The Bank Secrecy Act had little or nothing to do with tax evasion — after it, it wasn’t called the “tax secrecy act,” and by the way, there were already plenty of tax evasion laws on the books.