IRS Agents Are Watching Your Digital Money Transactions

June 25, 2023

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f you remember, just two years ago, President Joe Biden asked Congress to authorize the Internal Revenue Service (IRS) data collection on bank accounts with more than $600 in annual transactions. But banks and depositors pushed back, and the $600 figure was raised to $10,000. Everybody was happy.

But guess what didn’t change? The reporting of all digital transactions of $600 or more. That means that digital payment platforms like Zelle, PayPal, Venmo, Square Cash, and other Digital Wallets are required to report your transactions of $600 or more to the IRS.

Your digital money activities are now being watched. This year, you may receive multiple 1099-K forms from intermediaries like PayPal and Venmo. As the good taxpayer that you are, you’re going to file IRS Form 8949 for Sales and Other Dispositions of Capital Assets along with your 1040 tax return; and, of course, all of your transactions are going to line up with what has already been reported by PayPal, Venmo, etc.

But what if they don’t line up? Can you expect teams of two or three sweet and gentle, loving and kind, armed and unelected non-law enforcement IRS agents to visit your home?

This is all the more concerning because eventually you might only be able to conduct your daily lives using digital currency. You need only look to Greenwich, London. There’s a store here in the United States called Aldi’s. Well, Aldi’s in Greenwich, London, won’t allow you into the store without a Digital or QR Code. If you’re not a part of that system, you cannot purchase from that store.

The U.S. Federal Reserve’s Board of Governors have already issued a white paper in 2022 titled “Money and Payments: The U.S. Dollar in the Age of Digital Transformation” as a “first step” in exploring the creation of a Central Bank Digital Currency (CBDC).

A centralized digital currency has the potential to allow the federal government—including those armed IRS agents—to legally surveil U.S. citizens’ digital transactions and control bank accounts and purchases.

We’ve already seen this type of surveillance happen to cryptocurrency transactions. Last year, the Department of Justice (DOJ) authorized the IRS to serve a “John Doe summons” to go after U.S. taxpayers who didn’t properly report their cryptocurrency transactions. The DOJ even issued a press release on September 22, 2022, titled “IRS Obtains Court Order Authorizing Summons For Records Relating To U.S. Taxpayers Who Failed To Report And Pay Taxes On Cryptocurrency Transactions.”

IRS Commissioner Charles P. Rettig applauded the DOJ’s actions, stating: “The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats. The court’s granting of the John Doe summons reinforces our ongoing, significant efforts to ensure that everyone pays their fair share.”

The IRS utilizes John Doe summonses to obtain information about possible violations of the internal revenue laws by individuals whose identities are unknown. This presents an alarming concern for civil liberties as citizens become increasingly vulnerable to government surveillance. It is clear that there are implications that come with such powers, and it is important for citizens to be aware of the risks associated with using digital money.

Ponder this – experts are predicting the following possibilities about what governments could potentially do when they implement state-controlled digital currencies (CBDCs):

They could shut down your bank accounts based on your personal financial decisions.
They could cut off entire industries from the economy (think: firearms, alcohol, tobacco, etc.).
They could tie your medical records to your spending power. Are you overweight? Diabetic? Federal officials could write code that prevents you from using Social Security benefits to buy soda or candy.
They could tax all wealth or savings anywhere in the world, regardless of your income.
They could fine you with impunity.
They could push interest rates to below zero—effectively taxing savers for the privilege of lending out their money.
And they could easily seize your assets.

It truly is time to protect yourself.

The number one rule is the preservation of capital. So, what should you do now?

Reduce your exposure to paper assets and digital money and buy physical gold and silver now!

Why physical gold and silver?

Gold and other precious metals will be the only currency left to maintain your privacy.
Governments around the world are hoarding gold.
Physical gold can’t be hacked.
In 2017, CoinBase was ordered to hand over the identities of over 14,000 of its Digital Coin customers to the IRS. Physical gold and silver can’t release your information to governments.
It’s been a stable store of value for thousands of years. Its value fluctuates but never goes to zero.
It value can’t be inflated away by a debt-addicted government and its money-printing machines.