{"id":22472,"date":"2022-03-19T11:40:44","date_gmt":"2022-03-19T15:40:44","guid":{"rendered":"http:\/\/privacyfight.io\/?p=22472"},"modified":"2023-06-26T06:31:10","modified_gmt":"2023-06-26T10:31:10","slug":"u69-march-11-2022-discussion-crypto-exchanges-reporting-irs-fishing","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/u69-march-11-2022-discussion-crypto-exchanges-reporting-irs-fishing\/","title":{"rendered":"U69 &#8211; March 11, 2022 Discussion Crypto Exchanges Reporting &#038; IRS Fishing"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"22472\" class=\"elementor elementor-22472\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9bb08df elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9bb08df\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-efec999\" data-id=\"efec999\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b02fa38 elementor-widget elementor-widget-shortcode\" data-id=\"b02fa38\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\"><div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/733231757\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            0:04\r\nOK, thanks for joining us, this is John, day, to day Friday, March 11th, and we're gonna cover some recent articles. They're actually not that recent.\r\n0:10\r\nThey're from like, I don't know, maybe this started back when the IRS was collecting information from Coinbase and some other couple of ...        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>0:04<br \/>\nOK, thanks for joining us, this is John, day, to day Friday, March 11th, and we're gonna cover some recent articles. They're actually not that recent.<br \/>\n0:10<br \/>\nThey're from like, I don't know, maybe this started back when the IRS was collecting information from Coinbase and some other couple of other exchanges.<br \/>\n0:21<br \/>\nAnd so I'm gonna give you my theories on this, and we're going to talk about some articles I had published right about that time about letters that were sent out those 10000 letters, where it was like I think it was formulate, or 6172, and 60, 174, if I remember correctly. And they've got some other form form numbers. I didn't know that there were some other ones.<br \/>\n0:39<br \/>\nBut I just wanted to go over that.<br \/>\n0:40<br \/>\nSo, um, if you can see here, I'm showing you it. Let's go over here, I'm gonna go look over here.<br \/>\n0:46<br \/>\nSo, here we go, So, I just, um, You know, this came up a few times, and you can see, this came out a few times this week for some reason, but this article is from 2016, This is before, I believe, that IRS defined kryptos as property.<br \/>\n1:01<br \/>\nSo what they're trying to do is see what they can get away with.<br \/>\n1:05<br \/>\nI think the Department of Justice was trying to see what would happen, and then, of course, when you push people, you know, thousands of people, you push them a little bit. Someone's gonna.<br \/>\n1:15<br \/>\nSomeone's got to fight back, and sure enough, this guy named Harper decided to sue the IRS.<br \/>\n1:19<br \/>\nBecause he said, it wasn't fair that the IRS got his information without a warrant or something like that from Coinbase.<br \/>\n1:25<br \/>\nAnd so they're trying to use a third party rule.<br \/>\n1:27<br \/>\nThe IRS, as the Department of Justice, is doing this, to try to create, I think they're trying to create some case law, to say, it's cool. We can, we can take whatever information we want, anytime we want, and you can't do anything about it. And I think it's cool. This guy tried to do something about it.<br \/>\n1:39<br \/>\nBut at the same time, I mean, this came up in 20 18, I believe, And everybody was asking me, John would happen now, they have this, I got this form letter. It says that they have information that I might be trading in crypto, and all this stuff, and I said, ignore that letter. There is no information about you, trading crypto, all they're trying to do, is trick you into responding.<br \/>\n2:03<br \/>\nSo this guy got tricked.<br \/>\n2:05<br \/>\nAnd he sued them.<br \/>\n2:06<br \/>\nHe put the money up, and he sudirman this guy just paid.<br \/>\n2:10<br \/>\nWhatever taxes like everybody else does, that doesn't know any better. He paid all kinds of taxes on his thing.<br \/>\n2:16<br \/>\nHe had already paid his taxes, and he wasn't suing about the taxes, he was suing the IRS about the disclosure and obtaining the information from a third party.<br \/>\n2:22<br \/>\nSo, it's interesting that kryptos are based upon this new platform, which is an immutable accounting ledger know, that it's an open source accounting ledger, that it's public. Everybody can see it and it's not like your name is on there with the entries, but you can. You can discern that if you want to, but see, the IRS doesn't do that yet.<br \/>\n2:48<br \/>\nThe IRS can simply get some tech people from MIT, or Google, and they can direst, can go and get a special task force, and and go to the visit the blockchain, from the desktop, and their office.<br \/>\n3:01<br \/>\nAnd they can collect whatever information they want. They don't need to go to Coinbase realize that.<br \/>\n3:05<br \/>\nSo why the heck are they going to Coinbase so they can grandstands so they can scare people, right. So they could scare you into thinking oh, well, I guess I better tell the truth. Well, yeah, we should always tell the truth.<br \/>\n3:15<br \/>\nBut that doesn't mean anything that doesn't create a tax liability. Seeing what I'm doing. Doesn't create a tax liability. I know what creates a tax liability, and I'm gonna make it to where the way I use money and property doesn't credit tax liability in their eyes, too.<br \/>\n3:28<br \/>\nSo with this guy didn't get that, so he thought, this letter was custom made for him and he thought the IRS had the information.<br \/>\n3:34<br \/>\nAnd you know, what's interesting is the IRS code is simply said in response to the federal lawsuit, it could have said motion to dismiss. You didn't State of Cause of action because we lied in the letter that you received, the 672 or whatever. He got here, 653.<br \/>\n3:50<br \/>\nWe lied in there, and we, we, when we said that we have information that you may be trading. A crypto isn't may have a tax liability. We just said that, to prompt you to contact us.<br \/>\n4:00<br \/>\nSo therefore, you can't sue us because we don't actually have the records that we claim that we had, or lead you to believe in the letter. Of course, I'm not going to say that.<br \/>\n4:08<br \/>\nBut this is what's going on.<br \/>\n4:10<br \/>\nThey can't do that. They can't have that information 10000 letters. How did we get 10000 letters? I don't know who knows. It was 10000 letters. I guess it was maybe the Ira said it was 10000 letters.<br \/>\n4:20<br \/>\nSo anyways, he sues, and he says, hey, it's not fair. Third party doctrine doesn't apply here. I still have rights to privacy.<br \/>\n4:26<br \/>\nNo, maybe you don't.<br \/>\n4:28<br \/>\nNow, in my opinion, I don't think we have rights to privacy in that sense. I think we should.<br \/>\n4:35<br \/>\nWe do have rights to privacy under the attorney client privilege and other sort of privileges. I guess they don't want us to exercise an actual right to privacy because a privacy, right is a property, right?<br \/>\n4:47<br \/>\nOK, It's defined by the Supreme Court, it's property rights, so they didn't want us to have any private property rights. That is the purpose of having attorneys because they take those rights and people don't even understand what they are.<br \/>\n4:57<br \/>\nSo the way I would like to do things is, I just assume that the IRS is going to grab all your data and as you look at these cases, you you read through this here, OK, and there's some conditions on there trying to what conditions on which the IRS could obtain information, right?<br \/>\n5:16<br \/>\nThey have to show some evidence of wrongdoing and things like that, just as a show, it's, it's theater, OK, they're, they already have the information or they have access to it.<br \/>\n5:25<br \/>\nIt's so easy, they just want to know where to focus their resources.<br \/>\n5:31<br \/>\nAnd I think they're trying to create some case law and they're trying to scare people. There's a lot of things like that going on here.<br \/>\n5:36<br \/>\nUm, there are limits to a subpoena. I mean, really, it's not a subpoena, It's actually a summons.<br \/>\n5:43<br \/>\nThe summons is under the same rule as a subpoena really, but the summons is under the Federal rules of Civil Procedure. Rule 27. If you guys want to check that out, it's quite interesting. They never cite the rule because they don't want they don't want anybody to know what that is.<br \/>\n5:56<br \/>\nSo then you would know the limitations, it's real 27.<br \/>\n5:59<br \/>\nBut anyways, this is all they're doing is trying to scare people so they do have other remedies. The IRS can go to the blockchain, silently, they probably already do.<br \/>\n6:09<br \/>\nThey probably have access to all kinds of databases.<br \/>\n6:12<br \/>\nThey could probably get people's crypto data from their phones most of the time, without going through the legal process, but they don't want to do that, or they don't want to make that the focus. They want this to be the focus. They want old-school, 19 seventies style audit from the IRS type thing to go on, and so, harpers playing into that. He doesn't know any better, though.<br \/>\n6:35<br \/>\nHe doesn't know, So, let's go over here. This one was and this one was, you know, last year?<br \/>\n6:41<br \/>\nSo, the lawsuit is trying to get privacy for crypto users.<br \/>\n6:46<br \/>\nI'll just tell you that it's, it's gone. They're not going to the trend is to have no privacy, So here's what I did from the beginning. Since the nineties.<br \/>\n6:54<br \/>\nI always assume that my client has no privacy, and I try like **** to get privacy the most I can possibly get for the client, and so sometimes, I need to use public records to establish that.<br \/>\n7:07<br \/>\nThere's no claim that can be made against my client for any civil liability.<br \/>\n7:13<br \/>\nand so, where I cannot get privacy or I can use public records to to discourage investigations or litigation, that's what I'm gonna do. Because the risk I'm trying to avoid is like, cost of litigation and just dealing with the issue, right. So, this is, let me give you guys an example.<br \/>\n7:28<br \/>\nSo, let's say I sign a promissory note and I let somebody $100,000. Let's say, I let a business $100,000 and, so now I'm the lender, and I'm gonna get payments, and the interest rate is 6%, or something like that.<br \/>\n7:40<br \/>\nSo the interest is taxable, and it is taxable because let's say I'm a person that follows 1040, so because I'm the lender, and I'm getting the interest rate. And by the way, you can't make a fake note. It has to be real numbers.<br \/>\n7:53<br \/>\nYou can't just say, 0% interest.<br \/>\n7:57<br \/>\nYou don't want to anyways, all right, because they're gonna audit you.<br \/>\n8:00<br \/>\nAlright, so, So I'm getting interest and it's taxable, and I can't get around that. and everybody can see it if they want to. The IRS can summon the records and whatever. So there's a third party and all this stuff.<br \/>\n8:08<br \/>\nI'm not really going to get some sort of privacy on that, because it's all discoverable.<br \/>\n8:12<br \/>\nBut if I add in, as a lender, my brother, or my friend, or my partner, someone other than my spouse, so that way, it's to dis interested people to individuals with it, with different, beneficial interest.<br \/>\n8:28<br \/>\nIf I make those two people, so myself and my brother, or my sister, right, I make the, each of us the lender on the note.<br \/>\n8:34<br \/>\nAnd so now together, we are getting to 6% and together, let's just say we have a bank account and we're signing on the account.<br \/>\n8:43<br \/>\nAnd neither of us would have the rights to withdraw the funds. That's our agreement, that's our arrangement.<br \/>\n8:49<br \/>\nSo that would mean that there's no tax liability forever.<br \/>\n8:53<br \/>\nAs long as he and I are she and I are the note holders or lenders receiving the taxable that would otherwise be taxable interest payments.<br \/>\n9:04<br \/>\nSo when someday comes that one of us wants to take some money out, then we have possibly a tax liability and something to report, Forget 10, 99 and all that. I'm not talking about that.<br \/>\n9:15<br \/>\nI'm just saying by the IRS standards, if individually receive a game, I'm going to have a tax liability, and the IRS wants a piece of it, whether or not they see it. I'm just gonna agree that it's subject to taxation, but until then it's not. So, let's say my brother and I make a bunch of money, let's say with double our money, in a year, or whatever.<br \/>\n9:33<br \/>\nSo, now we got $200,000, and together, we go by another asset.<br \/>\n9:37<br \/>\nLet's say we buy a, you know, real estate investment, or we buy a car, something, I don't know.<br \/>\n9:43<br \/>\nIf we're both the owner protection, let's call, it carries over to the ownership of that next thing.<br \/>\n9:49<br \/>\nBecause he and I are not a taxpayer, we don't file a tax return. If we did, and we're not required to you, by the way. Just because we receive money, doesn't mean we have to file a tax return. This is different than people who filed at 10, 40 cars.<br \/>\n10:02<br \/>\nKnow, if you, unless you're out of that system, I mean, even I'm out of the system. But if I got 1099 tires, and say, hey, where have you been, you know, so I'm very careful not to get 1099, so I don't create that obligation. If you will, I don't have to deal with that.<br \/>\n10:14<br \/>\nBut if my brother and I did things together and we use our SSN, what we do everything in our names together, collectively, there would not be a tax liability for the two of us because there never was. And if we file a tax return together and claimed a liability, will then the IRS and say thank you very much and then go from there. And then the IRS would then have a duty to reconcile that account every year.<br \/>\n10:36<br \/>\nAnd, from that moment, when we found that tax return, it would probably be a partnership, whatever tax treatment that is, whatever the rate is, whatever that is, what would happen, and then, the next year.<br \/>\n10:47<br \/>\nIf he and I are still doing things like that, we would have a subsequent liability until we told the IRS with something.<br \/>\n10:55<br \/>\nLike, we would have to dissolve the partnership. We would have to tell them we did that or maybe we'd have to register with the state. It is all, but there's all kinds of ways of doing this.<br \/>\n11:03<br \/>\nSo, if I share my property rights with a group or a partner where the members of the group.<br \/>\n11:10<br \/>\nMy brother and I don't have a joint liability to anybody and this goes for, this goes for like, if he's getting sued. My brother is getting sued right for like 15 creditors and bunch of money, right?<br \/>\n11:22<br \/>\nThey would not be able to reach into the organization of the both of us to take any money out, because that's not his money, and it's not my money.<br \/>\n11:31<br \/>\nSo, people don't think about that, but what I'm doing is, on public records, I'm changing the property rights, so that they're, in a way, they're held in a way that there's no liability.<br \/>\n11:40<br \/>\nAnd then the person I'm working with can then use that property without the liabilities.<br \/>\n11:45<br \/>\nYou know, there's few exceptions to that, but this is not what people understand. No, no one's telling this.<br \/>\n11:52<br \/>\nYou know, there's only a few people that understand this basic concept.<br \/>\n11:55<br \/>\nIn fact, you know, I just think it's a lot of the people that I'm working with is starting to understand this, So.<br \/>\n12:00<br \/>\nYeah, so we're, so they're in the middle, looks like they're still in the middle of a preliminary hearings are still trying to challenge it, and so I'm going to quote something here. It says, the end result was iris sending 10000 letters to crypto holders, warning, they may not have paid taxes properly.<br \/>\n12:14<br \/>\nIt's a total sales pitch.<br \/>\n12:15<br \/>\nYou gotta see it for what it is.<br \/>\n12:19<br \/>\nSo.<br \/>\n12:22<br \/>\nI, like, this guy's attitudes are 100% committed to the idea that I'm supposed to raise the issue by filing for a refund. So you know, the IRS always wants to determine if you should get your money back. You don't get to use your money without a thing and approving your use of money. That's what this is about.<br \/>\n12:41<br \/>\nI like this guy's point, but really, we have the power to change the title and title the property that we're using in the way we want. We pretty much do now if you'll notice, if you guys are setting up LLCs and ... and things like that and you're you're interacting with the banks, you notice that they don't like that, they're trying to push back on that because they know what this defeat, this whole scheme, they're doing.<br \/>\n13:01<br \/>\nBut it's perfectly legal, OK? Yeah, so we have control over our data.<br \/>\n13:08<br \/>\nAnd property rights, yeah.<br \/>\n13:11<br \/>\nSo, and again, I think they're creating case law.<br \/>\n13:14<br \/>\nI made some notes here.<br \/>\n13:15<br \/>\nSo, this guy Harper, any overpaid, taxes like that?<br \/>\n13:18<br \/>\nAnyways, if, I'm just gonna open this up for questions, if you guys wanna throw anything out, I, you know, if there's any point I missed here, just let me know.<br \/>\n13:26<br \/>\nBut, let's, let's do some brief Q&A if we could. See if I can. I'm going to do a stop share here.<br \/>\n13:32<br \/>\nI can go back to the screen, too, if you want me to, You would, Yeah. Yeah.<br \/>\n13:37<br \/>\nSo, um, so I like, I like what you're saying, um.<br \/>\n13:41<br \/>\nYeah, I just love it, you know.<br \/>\n13:43<br \/>\nAnd I'm gonna segue a little bit, but it's kinda the same thing.<br \/>\n13:47<br \/>\nIt's like basically using a trust, two, diversify the ownership of whatever property you're dealing with. Right?<br \/>\n13:57<br \/>\nYeah, the language I like to use as you're divesting dive, Very good testing, divesting and I get to some case law. So I'm not the guy who thought of this stuff but you're divesting your exclusive rights in property so it's the right end and the Right. To sell.<br \/>\n14:12<br \/>\nVesting. Yeah.<br \/>\n14:12<br \/>\nAnd you're creating undivided, like ownership.<br \/>\n14:18<br \/>\nYep, so, I'm, I'm curious, you know, like crypto, Jay, he talks about using Trust to do this very thing.<br \/>\n14:26<br \/>\nI know you use LLCs, and And so, he basically said, You know, Trust don't have to report.<br \/>\n14:33<br \/>\nBut, when I go in, and I try to do the research on this, and the actual code, I mean, it's such gobbledygook. I have a hard time understanding it.<br \/>\n14:44<br \/>\nBut I know that it's, I know that it's in there because it's in there on a lot of other kinds of these code scams.<br \/>\n14:55<br \/>\nLike, like, you know, driving basically under a vehicle code means that you're engaged in commerce, so how do I like really get in there and find, know, the reality?<br \/>\n15:08<br \/>\nThe reality of, but the tax code. This is the hard thing, the tax, It's not gonna, it's not going to tell you what I'm telling you.<br \/>\n15:15<br \/>\nIt's like, it's excluded. They don't have to tell you this stuff. And that's why that code survived all the constitutional challenges because after the Civil War or they tried to bring in the tax code and a central bank and they couldn't do it. They kept They brought in a version of it, and it kept getting stricken down by the Supreme Court because it was imposing an obligation OK. There is no obligation. And so it, just the other day, I had a conversation with some, I don't know why. I let myself get sucked into this, but conversation on Telegram.<br \/>\n15:41<br \/>\nwith someone's attorney, trying to I don't know why. I don't try to convince people, you don't believe it fine. But I just, you know, he was kept quoting the procedures and the, What do you call it? The Circulars of the IRS? And I said, show me what law imposes an obligation to file a tax return for anybody.<br \/>\n16:00<br \/>\nAnd so when when does the tax classification? When does that take place?<br \/>\n16:04<br \/>\nAnd it's when you file a tax return, it's not when you get an EIN. Which is what the attorney said when you get an EIN. No, it's not.<br \/>\n16:09<br \/>\nVirus doesn't care how you got the EIN.<br \/>\n16:11<br \/>\nAll they care about is the tax return.<br \/>\n16:14<br \/>\nYeah, But, is it created if you get, say, a 1099 or something like that, which, is, that's an assumption.<br \/>\n16:20<br \/>\nThat assumption, it's just to report, it does not create an obligation to follow a tax return or, or pay a tax, actually, Just just a record of a payment that's all it is, It's what you file.<br \/>\n16:35<br \/>\nSo, that's awesome.<br \/>\n16:35<br \/>\nAnd so, you know, like, my responsibility is, like, do I even have to refute a 1099 for an entity? Whether it's an LLC or no trust. Now, I use them. I like getting them because It's just It's nice to have records.<br \/>\n16:49<br \/>\nYou know, if I wanted to do some accounting, I'll just send my 1099 for a trust or something. Have some bookkeeper, write up my balance sheet.<br \/>\n16:56<br \/>\nThat's kind of, I don't have to collect all that data. You know. That's nice. I mean, I get those all the time from, like Lulu and Whatnot from publishing stuff.<br \/>\n17:04<br \/>\nBut, yeah, the tinnitus and cradle an obligation. Now, here's the, here's the exception.<br \/>\n17:08<br \/>\nif you have 10, 40 before, and you get a 1099 with your SSN on there and you're the payee and you haven't found a return like me.<br \/>\n17:15<br \/>\nFor example, I'm filed for like, 30 years, OK, They would, say, let me send me a letter, say hey, where have you been. We haven't received your tax return.<br \/>\n17:26<br \/>\nI'm sure you guys have seen some of this before, because I've filed before, and I can tell you, from work.<br \/>\n17:31<br \/>\nin so many cases, I've had 30,000 cases, somewhere in there.<br \/>\n17:35<br \/>\nI've had five people, five that I can remember, over the last, let's say, maybe 20 years.<br \/>\n17:41<br \/>\nAnd for one reason or another, the people never filed 10, 40. 1 guy tell me that he was like in his thirties and he said, my uncle said, he told me to never file a tax return. He said, he was at a at my birthday party when I was 17, I don't know how that came up with, his uncle total, never to file a tax return, and he never did, and he had a corporate job.<br \/>\n18:01<br \/>\nHe was high up in the corporation. And the reason why he was calling me was, because a lot of his colleagues were talking about investing, and tax benefits, and all this stuff. And he was concerned that he should be doing what they're doing.<br \/>\n18:11<br \/>\nAnd so, what I told him is, and I have an interview.<br \/>\n18:13<br \/>\nI go through a wholesale, because I make sure that I'm not giving them the wrong information.<br \/>\n18:18<br \/>\nSure, I told him how to confirm and verify that he did not file if he did not file.<br \/>\n18:22<br \/>\nSo, I told him, don't ever file.<br \/>\n18:24<br \/>\nYou can do whatever you want. You can do it in your name with an SSN. You never have to file a return, You'll be fine. You know, it's not even illegal.<br \/>\n18:32<br \/>\nNow, if you've filed before, it's presumed to be illegal.<br \/>\n18:37<br \/>\nI don't know why, but, but it doesn't mean you have to file every year.<br \/>\n18:39<br \/>\nI have clients that get out of filing. They just stop filing. You can do that at the easiest.<br \/>\n18:47<br \/>\nYeah, I haven't filed since 20 12, but it hasn't stopped that California Franchise Tax Board from her harassing me and fishing with scary looking notices that I owe a bunch of money, but I don't. And it's not, there's not even any liens on the record as well. So, let me let me explain about that. Do you have a W two or anything like that?<br \/>\n19:07<br \/>\nUm, no, actually, my business didn't actually pay me any W twos. They just assessed fake fees and made it up. Well, OK. What, about 1099? Nothing like that.<br \/>\n19:18<br \/>\nThey never got any tax reports, W 2099, the franchise tax, It was all done, an incorporation. None of it was done under an SSN. So, here's what they're doing here and the same thing that IRS does, there's a There's a statute it's called that substitute for Return.<br \/>\n19:34<br \/>\nYeah. The Hex statute was that under. You can look it up.<br \/>\n19:36<br \/>\nOh, yeah, Yeah, OK.<br \/>\n19:38<br \/>\n620 B, All right.<br \/>\n19:40<br \/>\nSo, if you don't file return and you had before, the Iris will then take the last three years or the last time you filed, and they'll extrapolate.<br \/>\n19:48<br \/>\nJust to estimate what you should have filed. Now, here's the thing.<br \/>\n19:51<br \/>\nThe IRS does not assess taxes. This is the thing they never do.<br \/>\n19:56<br \/>\nThey never have, this is what makes it sustainable. This is why they survived constitutional challenges because they tricked you and to complying with something that is not required, but once you comply, you're considered to have been required to do whatever you just did.<br \/>\n20:09<br \/>\nOh, yeah.<br \/>\n20:12<br \/>\nSo, so they do this, they make it the only way their accounting system can work is that they create something that needs to be reconciled. And that's why I say to you, If you don't follow return for a trust or an LLC, there will be no need to reconcile anything. And even if the Irish were to look at that, yeah, if you get the top Irish person. The person who's actually competent, right?<br \/>\n20:34<br \/>\nAnd he looks at what you did and he sees, OK, I see one point five million dollars coming into an LLC and that came from an investment of a half a million dollars.<br \/>\n20:43<br \/>\nAnd so what the iris agent will say is that is Unsettled funds, and I don't care now, I'm speaking hypothetically, but I've just witnessed how they interact with the structures I create in the middle of a problem. I've never had, I've never create a structure to help someone do some planning and investing. I've never had problems later on. I've always gotten people out of the problem. In fact, right in front of the IRS, and this isn't how I know.<br \/>\n21:07<br \/>\nSo the, So the S, the assessment comes when you file the tax return, yeah.<br \/>\n21:15<br \/>\nIf you go and look at Joe ... case, you will see what he was indicted in the nineties this guy was an iris. Will call it, I know I see ID.<br \/>\n21:22<br \/>\nOK, yeah, I know there's a gun carrying CIA agent, and one day he walked into his boss's office, and he said, Hey, answer me this and they cut Nancy. He's like, I quit because They're a bunch of liars.<br \/>\n21:33<br \/>\nSo anyways, what they, what they found in the testimony is that the IRS agent was testifying, and one of the attorneys asked, so at what moment is a tax return considered filed.<br \/>\n21:43<br \/>\nHe said, When we receive a tax return, that appears to be valid.<br \/>\n21:47<br \/>\nWe have fixed a file number to it and then we process it.<br \/>\n21:51<br \/>\nAnd he said, it's not considered filed until we affix the final number.<br \/>\n21:56<br \/>\nSo how can you possibly file a tax return if you can't fix the file number?<br \/>\n22:02<br \/>\nYeah, exactly. It was to show you Yeah, I love it, and this doesn't matter.<br \/>\n22:06<br \/>\nIt's like, like I have, I have a trusted, has a foreign EIN, because it was created in Canada. So it doesn't really matter like, nope, doesn't matter, does. It? Doesn't matter where the ... has been created. And I think that EIN, you know, if it's a foreign trust, I think that's determined by the treaty that the United States has with and that's, you're involved in and being a taxpayer. If you're always using unsettled funds, you're not gonna have any problem that way.<br \/>\n22:35<br \/>\nAnd define on subtle tons.<br \/>\n22:36<br \/>\nunsettled just means that never read the money, hasn't reached its destination, and when does it reached its destination when the person files are returned to report the income.<br \/>\n22:47<br \/>\nThat's the case. Yes. Totally. And that, that makes sense with a trust. No matter, where the INS. Yeah, and I know you guys probably heard this before, but I'll just tell you the story just quickly. And I'm sorry, I can't cite the case. Maybe I shouldn't tell you if I can't cite the case, but this was look it up.<br \/>\n23:03<br \/>\nI don't remember that I have to go like it's one of my older older books.<br \/>\n23:06<br \/>\nI'll look it up, but basically, maybe you can find this, OK, so this is in the eighties, and it was an older couple that had retired and they start filing why? Because their CPA said, you guys don't make enough money, You don't have to file, which was, my parents did the same thing, and they start filing too. And so that was standard stuff.<br \/>\n23:23<br \/>\nWell, the IRS agents didn't like that. So, they sent a letter, saying hey, where are your tax returns? And they wrote a letter back in their CPA roller back and said, we're not required to file. We didn't make enough money would just retired, we can only have Social Security. This is back when I think they did not tax Social Security.<br \/>\n23:36<br \/>\nSo, the iris determined that they really wanted them to file a tax return.<br \/>\n23:41<br \/>\nSo they filed a substitute for return, and that created a tax liability.<br \/>\n23:46<br \/>\nThat started the process, OK, and that take it takes a couple of years.<br \/>\n23:50<br \/>\nAnd they ended up with a lien alevi lien levy.<br \/>\n23:54<br \/>\nAnd so, the IRS levied there are bank accounts and took out $8000.<br \/>\n24:00<br \/>\nSo, or they took out a portion of it. And so what happened was, here's how, here's how you have to sue the IRS.<br \/>\n24:04<br \/>\nIf you don't know, you have to get permission to suit the IRS, and here's how you get permission. In that case, They went to an attorney. The attorney said, OK.<br \/>\n24:13<br \/>\nWe have to file a claim for refund on form 843, and we have to file your tax returns.<br \/>\n24:19<br \/>\nYou just have to do it that way.<br \/>\n24:21<br \/>\nAnd you have to pay the difference that they still say you owe, and then when they deny the 843 claim for refund, you then have the right to sue them in the US District Court, which they did.<br \/>\n24:32<br \/>\nSo, during the preceding, the DOJ buys the judge, they're supposed to do this.<br \/>\n24:38<br \/>\nThe doge advised the judge that the couple wasn't required to file tax returns in the first place. This was after probably days of a trial. And so the judge says, hold on a second. Right.<br \/>\n24:51<br \/>\nYou went through all this mess, and you're telling me now that they weren't required to file. I thought everybody was required to file. Why weren't they required to file?<br \/>\n24:59<br \/>\nYou never believe what she said. She said they weren't required to file because they they didn't file.<br \/>\n25:04<br \/>\nWow.<br \/>\n25:06<br \/>\nWell, I mean, almost every time, I try to verify that, I get verification of everything. I'm looking at. And keep in mind I've when I first started this in the nineties, and early two thousands, I would fly up to people's houses. And I will stay there for a couple, couple of days, three days. And I would propel their documents. A lot of these people were tax protesters in the traditional sense.<br \/>\n25:23<br \/>\nAnd yeah.<br \/>\n25:26<br \/>\nAnd so I would get them out of the audit situation by simply creating records to give the IRS the same data. They already had to make it look like I gave them whatever they want it, but I didn't get anything new. And then they were just left with a bill, and then I would, you know, walk my client back from that situation.<br \/>\n25:41<br \/>\nSo anyways, you know, that's that.<br \/>\n25:43<br \/>\nI mean, that this whole thing is a scam. But I don't even like, that's not even something to rely on. I mean, that, just, it's nice to know that stuff.<br \/>\n25:49<br \/>\nSo look, let's assume that you have to file a return, and let's just create a situation where you don't have a gain in their eyes by their own standards, and that's why I can get the IRS to agree that my trades between Kryptos and the increase in value is not taxable.<br \/>\n26:04<br \/>\nBecause of the way I say it in my letter. By the way, I just finished my series for the Inner Circle. So, you'll see that come up pretty soon.<br \/>\n26:11<br \/>\nWe're gonna publish that. I'm gonna give you guys the lead. I'm gonna show you how this works.<br \/>\n26:15<br \/>\nSo, that's awesome. So you basically just volunteer the information that you want them to see and understand that shows there's a zero an obligation with whatever you do with the crypto, with the entity. Yes.<br \/>\n26:26<br \/>\nSo, talking about the right to privacy, I can organized, yes.<br \/>\n26:30<br \/>\nYes, You can organize your affairs in a way that creates a, visible everything, on the, on the table, way to get the IRS to determine that you have no tax liability.<br \/>\n26:41<br \/>\nSo, so there's no privacy when, when someone shows me a 1099 B, or something like that from Coinbase, and when I when I write a letter to the IRS And I say yeah, this is all the things that happened here, but this in 10 99 is erroneous because it doesn't represent the amount of dollars received from any disposition of the asset.<br \/>\n26:59<br \/>\nAnd furthermore, my client wasn't the owner of the asset at any time.<br \/>\n27:03<br \/>\nThe owner was the exchange, because of the real relationship that has to go there because of the technology, because of the technology.<br \/>\n27:13<br \/>\nSo I just think that they're trying to scare people and the blockchain is the remedy, and I think in the near future they will use the blockchain, but they're not ready to do it yet. I think they have to get rid of the old Guard so to speak and bring in the techie whatever system they're going to come up with.<br \/>\n27:26<br \/>\nThey're probably working on that right now, But I think it's going to be those days when the dollar is not what it used to be, which is like a piece of paper somewhere.<br \/>\n27:35<br \/>\nThey're still going to call it the dollar, but I think it's going to be on the blockchain.<br \/>\n27:39<br \/>\nDo you do you still think that crypto has got a pump much higher for them to turn around everyone in still there. They're gonna go and waves, yes. I think it's gonna They're gonna pump it up again.<br \/>\n27:51<br \/>\nThey're gonna bring people in and also the big money is is getting into crypto now right now.<br \/>\n27:54<br \/>\nThey're organizing themselves There was a big wealth transfer during the state pandemic like the last two years there's a big wealth wealth transfer as you can imagine. Yeah, I read it. I read about all the small businesses going out and the big getting bigger. That's the small part of it. The big part of it on the background is the mining, operations and infrastructure and just just huge consolidation. OK, I've got this going on like Vanguard Blackrock, these guys.<br \/>\n28:19<br \/>\nYeah, so that's this is this is kind of ominous but anyways.<br \/>\n28:22<br \/>\nYeah, so I think the, I think the blockchain is that the tool of oppression in the future. But I also think that, I mean heck we can write on blockchain and who the Heck meets coinbase You can get around the base.<br \/>\n28:32<br \/>\nI mean we have the technology, we just don't have the time to get together with 2 or 3 people and maybe download some tech from some apps, from Git Hub, OK, And creator on blockchain.<br \/>\n28:42<br \/>\nWe can do all that stuff, we can create our own exchange.<br \/>\n28:47<br \/>\nI think people are gonna start realizing that, just like the dark web, I mean, the dark web was invented by the US military, And they've been the US. Government's been using the dark web forever?<br \/>\n28:57<br \/>\nWe don't, Yeah. Because why it's been demonized.<br \/>\n29:00<br \/>\nSo, anyways, I just don't want to cover that. Anybody have questions on this? I mean, I missed something here, right here.<br \/>\n29:11<br \/>\nI think, I think there's some hands up. Just Yeah, Heather, Heather has got something.<br \/>\n29:16<br \/>\nI guess I got one, too.<br \/>\n29:19<br \/>\nOh, OK. So, you're saying that if it's on the Exchange, the Exchange owns it.<br \/>\n29:25<br \/>\nWhat happens if you take it out and put it into your ledger wallet, then, you're in possession.<br \/>\n29:31<br \/>\nAnd you're the custodian of the private key once you have exclusive rights over the private key. Then you're the owner.<br \/>\n29:37<br \/>\nSo you do become, the owner wants you to put it in your own.<br \/>\n29:40<br \/>\nTravel wallet, yes, OK.<br \/>\n29:45<br \/>\nYeah, just like it's like just like the golden, your sock drawer, or something, or in your vault. The gold coin.<br \/>\n29:50<br \/>\nIt works just like that, legally.<br \/>\n29:55<br \/>\nAll right, anything else?<br \/>\n29:57<br \/>\nI'm not sure I really understand that, but I don't want to take other people's time.<br \/>\n30:01<br \/>\nWe can cover that more. There's Wagons.<br \/>\n30:06<br \/>\nHey, John, I've got a LLC where, well, you help me set up an LLC in New Mexico? I'm from Canada.<br \/>\n30:12<br \/>\nAnd I was just wondering, I am happy with my understanding of the concepts, but I was just wondering if you could throw out, like, a couple names of banks in the US for me to look into that would allow me to send money around the world without needing to be at the location?<br \/>\n30:28<br \/>\nOK, there's some friendly banks that we've been using, actually, since, like 2009. Chase Bank is a good one. Chase Bank.<br \/>\n30:35<br \/>\nYou can open online and yes, you can be a foreign seiner for a domestic LLC.<br \/>\n30:41<br \/>\nI think they want you to fill out it W eight or something like that.<br \/>\n30:44<br \/>\nThat's OK.<br \/>\n30:47<br \/>\nThere's that.<br \/>\n30:48<br \/>\nAnd then first internet Bank as I heard the other day, let me let me check real quick because I might have a list here. I try to compile lists because my clients write back and they say, hey, I had a great experience with such and such.<br \/>\n31:00<br \/>\nAnd I'm what I'm finding, is, some of these banks are like, The new, I think it's the old banks doing some marketing, and they're just positioning themselves to capture the market of people that are in Tech, kryptos and things like that.<br \/>\n31:13<br \/>\nSome banks are turning you away, but then there's some out there that are wanting you.<br \/>\n31:17<br \/>\nIf you're in the tech area, let me see if I can find I have my Readme first file here, so I can find something.<br \/>\n31:27<br \/>\nBut, yeah, first Internet, Bank and.<br \/>\n31:33<br \/>\nAnd also, you can US US.<br \/>\n31:35<br \/>\nBank is one Chase Bank in the states.<br \/>\n31:40<br \/>\nFirst Internet bank?<br \/>\n31:42<br \/>\nHmm.<br \/>\n31:47<br \/>\nHere's one called Fund darragh, F U N D R a dot com They have business checking.<br \/>\n31:57<br \/>\nSo free business checking actually.<br \/>\n32:00<br \/>\nOK.<br \/>\n32:00<br \/>\nAnd in the event that any of these banks want an address, should I should I give them the address that the LLC's registered under? Or can I just give them mine? Like in Canada, you can give them whatever address you want and it doesn't matter, OK, yeah, it doesn't matter under and tell them, don't send me mail, Sometimes they and they understand that. Sometimes they want you to verify that.<br \/>\n32:24<br \/>\nYou actually have some sort of control over the address we use, and then my response to that is, Why don't? I Just, I just got that, I just got this company set up, it's brand new you know, so you just kind of have to talk your way through that.<br \/>\n32:37<br \/>\nI mean, sometimes we can do a lease agreement or something, but it's not necessary.<br \/>\n32:41<br \/>\nOK, great, Thank you. That's that's the only question I had, thank you very much. All right.<br \/>\n32:45<br \/>\nAll right, Right, Jim, what he got?<br \/>\n32:48<br \/>\nHey, John.<br \/>\n32:49<br \/>\nYou created my LLC forming last summer in Pennsylvania OK, and I have a couple of questions on a few things. I want to do, and it might take up 15 minutes of your time. Is there a good time? I could call you next week?<br \/>\n33:03<br \/>\nYeah, that'd be fine on my calendars on ace of coins dot com Usually if you can't get on the calendar if you try to get me before 3 0 PM Eastern time OK.<br \/>\n33:12<br \/>\nA text message you guys. You have my phone, right? Yes. Yes, Send me. Yeah, send me a text message, and you're OK to send me. 2 or 3 because sometimes they get pushed down and I don't see them OK. Yeah, please do that. And if you're not on the calendar, I could probably get you just about before I start my three o'clock calls.<br \/>\n33:28<br \/>\nOK, yeah, thank you because I tried to send you a proton mail and it said to go to the chat in the points and I went there and I hadn't heard back. So I wanted to sorry about that. Yeah. Yeah, try to call me directly.<br \/>\n33:40<br \/>\nOK, thank you, John.<br \/>\n33:41<br \/>\nSure, there's a question here. Not pay taxes need to avoid getting 1099.<br \/>\n33:46<br \/>\nHey, you and me both, I don't, file returns, have not broken any laws but if I get 1099 with my name and SSN on it, virus, I want to talk to them and they'll probably tell me, I have to file returns for forever. And I don't know how they're going to come up with any data there because there's no data.<br \/>\n34:01<br \/>\nThere's nothing even to estimate from.<br \/>\n34:03<br \/>\nUm, OK, so, when you, when you registered company in the state of New Mexico, someone's asking about how to get the article. So when we register it, sometimes my assistant, maybe she forgets to send you the actual stamped articles.<br \/>\n34:16<br \/>\nYou can go search on the company name with the Secretary of state, and usually they'll just It'll just pop up and you download it.<br \/>\n34:21<br \/>\nSometimes the states aren't that friendly, so we usually send it with with our final document. So if we didn't just say, Hey, where's the stamped articles? And the nice thing is the banks just want a copy of the stamp articles. Years ago, they would ask for a certified copy, which is a pain to get those, so yeah, that the state has yours. It's interesting because if the state has yours, why doesn't the employee at the bank just go, look it up, it's public record, but the kind of make us go to those hoops.<br \/>\n34:49<br \/>\nAnd how far with Iris go to track your holdings through the ledger to determine that I am in your private wallet I haven't seen that yet. I have not seen them, OK.<br \/>\n35:00<br \/>\nIt would be the same effort That you may have maybe heard about if you ever heard a case on the IRS wanting to look at someone's gold coin holdings.<br \/>\n35:10<br \/>\nLike if you're a gold investor and you, there's a record of in your bank statement that you sent money to this coin broker and then you received that they sent you the gold. And then who knows where it is now, but at an audit. That is where that would come up.<br \/>\n35:26<br \/>\nThen, so what, so you bought something.<br \/>\n35:29<br \/>\nSo, let's just say, I always assume the worst-case scenario.<br \/>\n35:33<br \/>\nThey can see that.<br \/>\n35:36<br \/>\nAnd if you bought, if you bought something and now you have holdings, that doesn't create a tax liability.<br \/>\n35:44<br \/>\nIt's funny too because I mean I always say that it's funny too but it's, it's peculiar that let's say you've got a gold coin and let's say you owe the IRS the money and they want to talk to you and they are sitting at across the table from you and the week before. You soldier gold coin at a really nice profit. You haven't accounted for it yet.<br \/>\n35:59<br \/>\nYou will, you'll pay tax on it later but for right now, all that it shows, as you sold your gold and you have this nice, lump sum of cash in your bank account.<br \/>\n36:06<br \/>\nWell, it was there. last week you did something with it, Who knows? And I've been to artists before. Where the irises would you do with that money?<br \/>\n36:14<br \/>\nAnd so what I tell my client is, just confirm that the irises correct and then stop talking.<br \/>\n36:21<br \/>\nLike what are they going to do about that.<br \/>\n36:23<br \/>\nFor all they know you're, you're so caring about your family that you owed her grandmother that money because of a loan she gave you and you paid her first.<br \/>\n36:32<br \/>\nWho cares.<br \/>\n36:33<br \/>\nI was able to use cabbage, OK For John's LLC and had him, that's nice to hear. So cabbages, probably what an exchange, or is there a bank That's a funny name for a bank.<br \/>\n36:44<br \/>\nSo yeah, sometimes, like some people tell me, like this one guy told me he just open his Bank of America no problems.<br \/>\n36:49<br \/>\nSome people call me and say, I can't get Bank of America to open my account. I don't know, I think it has to do with their employees.<br \/>\n36:56<br \/>\nOn the PMA we don't register it. That's the whole point of a PMA, OK? The only reason we register an LLC which we don't even need to do that. I mean if you're going to use an LLC to run a business, you have to announce it to the public.<br \/>\n37:06<br \/>\nThat the States monopolize this method this process for, like the last 50 years since World War II. So the Bank will not open your account unless you registered with the State. So what account holder do I have? It's an LLC. I do not need a PMA to be an account holder. Maybe the PMA owns the account holder. Maybe it's the single member manager of my LLC, and certainly it does not need a tax number. It does not need to do anything.<br \/>\n37:29<br \/>\nIt just needs to own my LLC. That's all it does. It owns 100% of the interest.<br \/>\n37:34<br \/>\nDoes not file a tax return register, or anything like that. Let me give an example of what a PMA is.<br \/>\n37:39<br \/>\nPrivate membership association as defined by the membership and what it excludes, not what it includes. This is our standard case law, OK? PMA has a lot of power.<br \/>\n37:50<br \/>\nThe: the Court system, like your local Court, has the same legal standing of being a private membership association as your family.<br \/>\n38:00<br \/>\nYour family is a private membership association and that last birthday party you went to that was a private membership association, same with that wedding party.<br \/>\n38:09<br \/>\nSo, is your school unless it's a public school, have you ever had any success reversing an IRS lock in, on a W two, a lock and no.<br \/>\n38:19<br \/>\nUm, I'm assuming the lock in is when you claim like 9 Deduction 9, 9 was called dependence, or something like that, Max dependence And then after a couple of years, the IRS said, Hey, you can't do that, You only get one.<br \/>\n38:32<br \/>\nI can't reverse that.<br \/>\n38:35<br \/>\nWhat do I do in that situation? I mean, I don't know. I can't, I can't do anything with that.<br \/>\n38:39<br \/>\nThe problem is, hate to say, that you have wages.<br \/>\n38:44<br \/>\nThat's, I can't get out of that. Once you have wages, you're kind of stuck in that system, when creating the LLC, do you submit the operating agreement? The articles?<br \/>\n38:53<br \/>\nYeah. What I do is, when you, here's how you create an LLC. Here's how you register it.<br \/>\n38:58<br \/>\nYou just go to the Secretary of State and you fill out their intake form on the Internet. That's how we do it today. I mean, it used to be on paper, but all you're really doing is just declaring in the public.<br \/>\n39:07<br \/>\nBecause the state will publish this.<br \/>\n39:09<br \/>\nThe name, the owner, the address if it's perpetual or not.<br \/>\n39:15<br \/>\nAnd the relationship and indemnification of the owners, OK, basically is what you're doing.<br \/>\n39:21<br \/>\nWhat you're paying for is the filing fee. So if you registered LLC in the state of New Mexico, you're gonna pay $50. And so here's what you're paying for, you're paying a tax for Indemnification.<br \/>\n39:31<br \/>\nThis is the whole beauty of the whole thing, because this is how our railroad system got built. If it wasn't for this type of situation, we wouldn't have been able to build up our railroad system so easily.<br \/>\n39:40<br \/>\nAnd not that it was that easy, but the state is indemnifying you, the state is saying, Hey, everybody, anybody who wants to make a claim against this newly registered company can't do it, as long as the people in that company are following the rules meeting. You're not going to use the company for any illegal purpose. We got their back. We're gonna give you charging order protection. We're gonna give you whatever indemnification goes along with this type of structure, and that's what creates things. That's what creates investments and things like that. So that's your that's what your $50 is for Indemnification.<br \/>\n40:12<br \/>\nYeah, we don't, we don't give him the operating agreement because that can change every day.<br \/>\n40:16<br \/>\nBut the articles announced to the public are what make it binding on the world binding, meaning that everybody has to take it at face value. That's why I explain, just get your account open, if the banks giving you a hard time about how you structure the ownership in the company.<br \/>\n40:29<br \/>\nTell them whatever you want, because the articles are what count, not what you submitted on your EIN application. Not where you told the bank. None of that matters.<br \/>\n40:38<br \/>\nI just sent on my info presented at Bank, OK, there.<br \/>\n40:42<br \/>\nThey're all online, OK, interesting, just gotta call. That's nice to know, OK. So you just use first Internet Bank, OK. That's nice to hear that. I wouldn't recommend opening an account with the PMA. I would not recommend making the PMA the account holder.<br \/>\n40:54<br \/>\nI would recommend use your LLC as account well because I think the LLC is better suited to deal with the world because you've got all kinds of legal protections with an LLC.<br \/>\n41:02<br \/>\nYou have huge amount of legal protections with the PMA. We can get into that. There's a whole school on that, but I would not open a PMA account.<br \/>\n41:10<br \/>\nIt's kind of exposing it to everything because I mean I don't know if you guys ever read Title 12 of the Code of Federal Regulations, the banking regs it takes up this whole back wall here by the way.<br \/>\n41:21<br \/>\nSo who wants that?<br \/>\n41:22<br \/>\nYou know I wouldn't have put my PMA in that, alright, So if you buy a truck with a business loan from an LLC you created, Do you list the PMA as the owner of your actual name? You can buy the truck however you want to get. The PMA should be in the background.<br \/>\n41:38<br \/>\nMy daughter just bought a car the other day.<br \/>\n41:39<br \/>\nShe bought it with financing too, and she, it was actually easier to get financing and buy the car the way she did, using her LLC.<br \/>\n41:49<br \/>\nAlways, always use an LLC, I like Chase Trust for this, by the way. I like his trust organizations as a quick, quick solution to owning title to a car.<br \/>\n41:58<br \/>\nAnd the PMA is the best thing to do. Why? OK?<br \/>\n42:01<br \/>\nWell, the best, I think the best method is to have an LLC. That expresses what I described earlier, where it's my brother and myself that are the joint owners of property.<br \/>\n42:13<br \/>\nThat is not enough today because of the way the Bank software works.<br \/>\n42:17<br \/>\nSo that's why we use the LLC because now we have a statutory framework and we're going to get certain benefits and indemnification, whereas if we just did it individually, they might be able to pierce that.<br \/>\n42:27<br \/>\nBut if I use an LLC perfect, if I use a PMA, what could happen is the protections.<br \/>\n42:34<br \/>\nMy LLC would give me would go away, but the PMA has certain protections.<br \/>\n42:40<br \/>\nBut what could happen is somebody could challenge the relationship of the property rights with a PMA, but with an LLC it's taken at face value.<br \/>\n42:48<br \/>\nAnd the courts will uphold it without a question: unless you're drug dealing or something like that. That is why.<br \/>\n42:53<br \/>\nYeah. Good, OK. It did open his LLC. That's why, why he's an LLC.<br \/>\n42:56<br \/>\nI think got lots of hands up. I'm gonna get to the second, Or the banks running a personal credit? check? Yes, they always do. Here's what the banks do.<br \/>\n43:02<br \/>\nFirst of all, they check with your your number that you're using for your credit.<br \/>\n43:08<br \/>\nMost people's SSN.<br \/>\n43:10<br \/>\nThey check what's called the death index to make sure that you're not using someone else's SSN and make sure that that SSN is not currently assigned to someone who's recently deceased. That sounds weird, but no one ever talks about that. The next thing the banks do is they, they run a check on a credit reporting service, much like Equifax called check systems, C H E X Systems.<br \/>\n43:31<br \/>\nCheck systems is regulated under the Fair Credit Reporting Act, and that keeps data regarding, like, let's say, if you owe five bucks to your other bank, for a fee or something, you never paid it.<br \/>\n43:42<br \/>\nThe new bank won't open your account and to pay the other bank.<br \/>\n43:45<br \/>\nIt's like their buddy system.<br \/>\n43:47<br \/>\nBut, yeah, that's pretty much all they do with a check to make sure you have a credit file. That makes sure that number is not assigned to a dead person, and then they check your check system to see if you go to other banks and then maybe it depends on maybe it's a credit union, Maybe they'll check and check your credit score.<br \/>\n43:59<br \/>\nBecause sometimes the banks use your account: two, I think they all do this I think they all require regard your account as a loan to you, even though you're bringing the money. If you bring a thousand dollar deposit or $100,000, the banks account for that as if they lent you that money.<br \/>\n44:15<br \/>\nSo that's why they want you have good credit because when they go to there No third parties or whatever, I guess you'd call them re lenders or something They want to be able to write that paper that's what's going on yeah, personal credit, opening account, Yeah, they are, OK, so how do you get around that, OK?<br \/>\n44:32<br \/>\nSo, maybe that you're not going to get around as designers? So what you want to do is have your LLC be the account holder and yet, they're still gonna run a check maybe, but it's not so prominent because your LLC is the account holder.<br \/>\n44:43<br \/>\nIf you want more attention, and more assessment, based upon the LLC, if you really want to do this in, which I have not seen a need to do this, unless you're actually going to need Business Credit. You can set up a Dun and Bradstreet file, it takes a few months.<br \/>\n44:54<br \/>\nIt doesn't cost much to do this, it just takes time and some paperwork, basically, but you can set up a Dun and Bradstreet credit file and that just involves some Net 30 accounts.<br \/>\n45:04<br \/>\nSo, let me check here.<br \/>\n45:05<br \/>\nAll right, let's see, we got Heathers, iPad, is it alive?<br \/>\n45:09<br \/>\nHeathers iPad.<br \/>\n45:14<br \/>\nAll right, yes.<br \/>\n45:16<br \/>\nOK, so, um, my questions are Real beginner, So I don't want to like, consolidate anytime, and take away from the great things. So we were watching, this is my roommate.<br \/>\n45:31<br \/>\nGreg is retired, he receives security benefits, so sorry, I'm trying to include him in here at sap.<br \/>\n45:42<br \/>\nNo, he wants to keep those in everything. So we wouldn't you just keep him hidden. No, right and everything that we're doing, as far as them.<br \/>\n45:52<br \/>\nLike, here's something. First of all, we watched the real estate video the other day. and I reached out to mister Tycoon.<br \/>\n45:59<br \/>\nSit in doing that.<br \/>\n46:00<br \/>\nAnd also, I'm following along with what you're saying, goodbye and large, but I'm missing my angst and pieces, and I'll come back to that because I wanted to ask you a feat that we should watch all the videos, and then reach out for consultation, or it doesn't matter, whatever, whatever you feel like doing, because we've watched a lot of videos, OK? All right?<br \/>\n46:25<br \/>\nAll right, Great.<br \/>\n46:27<br \/>\nThat makes it easier when we have a conversation, So a lot of your videos, and just even one with mister Tycoon.<br \/>\n46:35<br \/>\nRewind it and watch a couple parts of it over, and over, and over again, like the subject to warranty deeds, and all that stuff.<br \/>\n46:44<br \/>\nAnyways, aside from that point so on, as far as like, any investment set, or any gains or whatever, we need to hide all of that.<br \/>\n46:55<br \/>\nWe want to make sure that he stays free and clear.<br \/>\n46:58<br \/>\nSo, from what, now, what kind of money we're talking about, like, where is it coming from?<br \/>\n47:04<br \/>\nHe received Social Security benefits, and that catch their 401 K.<br \/>\n47:09<br \/>\nThat our own back without being in bank, Does that you already paid the tax on that to cash it out or whatever you're done with the IRS? Yes, we call that after tax money, so you're free and clear there, Do what you want. If you manage everything under Shared interests, like an LLC, The way I'm suggesting that, doesn't matter who sees what you can do, whatever you want.<br \/>\n47:30<br \/>\nI don't really have to hide anything.<br \/>\n47:33<br \/>\nAll you're doing is changing your property rights. Yeah, they can see it. I mean, they're good. They definitely can see your SS money.<br \/>\n47:39<br \/>\nOh, take take your cash and buy something that you're comfortable with. You know, if you don't want to mean, some people, I just say, goodbye some gold and keeps them cash and have fun with it. You know, some people, when I've done that, Well, he's got that.<br \/>\n47:50<br \/>\nWe're ready to like, try to make some money. Yeah, OK.<br \/>\n47:55<br \/>\nWell, there's some videos on that and we can have that conversation, too. If you want to set a time with me, are welcome to do that.<br \/>\n48:01<br \/>\nYeah, If you remember, I was saying last time, if you're if you're a members, OK, of anything, if you called me, or, and paid for consultation or something, you're welcome to schedule with me and just not pay for that call.<br \/>\n48:11<br \/>\nSo you just use the coupon code.<br \/>\n48:13<br \/>\njust so you know.<br \/>\n48:17<br \/>\nCoupon code is free, C O N, 222.<br \/>\n48:22<br \/>\nI just ask that it's only for people that have already paid something, anything.<br \/>\n48:26<br \/>\nOh, sure. Yeah. Yeah. Yeah, yeah.<br \/>\n48:28<br \/>\nI don't want to take advantage of you, to think that we're trying to take advantage, So, it's OK, If I have time, I'll be glad to know, that says, oh, yeah, I just wanted to make sure we're doing it the right way, because we need Some have definitely. It always helps one-on-one. It's just hard to get me.<br \/>\n48:42<br \/>\nBut certainly I look forward to talking with you, OK, thank you, OK.<br \/>\n48:47<br \/>\nAll right, All right, so we'll go to Demetria Hi, John. How are you going to thank you. All right.<br \/>\n48:54<br \/>\nSo I've got a couple of like 1, 2, 3 quick stuff I want to first of all, I only the US Exchange is generating 10 99.<br \/>\n49:08<br \/>\nAnything of the states would do 1099. Some are still not be true out of the country. We don't have to worry about that.<br \/>\n49:15<br \/>\nThey will do a 1099 where there's it's considered a US account holder.<br \/>\n49:20<br \/>\nSo, I do we do have to check if we've traded in those accounts as well.<br \/>\n49:24<br \/>\nYeah.<br \/>\n49:26<br \/>\nThey should I think that required by law to send you by e-mail, and a lot of these companies have software that has an inbox, I think, like an e-mail inbox when you sign onto your account.<br \/>\n49:37<br \/>\nIt's essentially 1099.<br \/>\n49:39<br \/>\nIt will be an e-mail, OK?<br \/>\n49:42<br \/>\nSo, then, once you download all of your thousand 99 from the various exchanges, and you find that they're pretty accurate, then do you just go ahead and submit them to tell you, you know, April 15th? If they're accurate.<br \/>\n49:56<br \/>\nI mean, if that dollar amount that stated on there, if you actually got that in your hand, then what does not work? If there's a discrepancy, then. What do you do because they've already reported to the IRS? Is it in a personal account, or LLC, or right now, personal question?<br \/>\n50:14<br \/>\nPersonal, and you get a 1099 and the dollar amount does not match what you actually received, then you have to get it corrected.<br \/>\n50:21<br \/>\nAnd this is why I did, I did that video, that series, to teach everyone how to ask the IRS to agree that it should be excluded from your 1040.<br \/>\n50:29<br \/>\nOK, alright, I never took any any U S, D, everything is just right. That's why we can ask them to agree with us. If you took the dollars, then to that extent, we can't get them to agree. So, like if you actually took some dollars out, we have to back that out of the request, we send in the IRS.<br \/>\n50:46<br \/>\nGotcha, OK.<br \/>\n50:47<br \/>\nSo, there is further, once I check everything, OK.<br \/>\n50:50<br \/>\nSo, um, Number two, I wanted to know remember if you remember a couple of weeks ago we talked and I took my primary residence, my condominium took it out of trust. A bank trust that I had it, I turned it into an LLC. I turned the ownership over to the LLC I won recorded with the county Clerk's Office.<br \/>\n51:11<br \/>\nSo, now, because I put it in the LLC that, we originally opened for crypto investment and real estate mm hmm.<br \/>\n51:18<br \/>\nPerfect. Now, do I need another one for kryptos?<br \/>\n51:22<br \/>\nNote, kryptos are quiet liquid, so that's why the risk is low you can always move those around. You can put those run into a private ledger. Now, if it's real estate, it's a bit different.<br \/>\n51:32<br \/>\nSo your house mixed with a real estate investment is probably a no-no for at least the short, well, not the short term but the long term like this over a year. Maybe not, if you have a lot of things going on, like people trying to collect money and things like that. I wouldn't lump them together.<br \/>\n51:48<br \/>\nWhat you could do, though, is, if you want to use your LLC for multiple purposes, like, here's an example.<br \/>\n51:53<br \/>\nSo, if I have a house and a car, it's my house I live in, it's my car that I drive, and maybe I want to protect the title. And, by the way, vehicles, low risk.<br \/>\n52:02<br \/>\nHouses, you live in higher risk.<br \/>\n52:05<br \/>\nSo, one or the other, you can take your LLC that has maybe a crypto account, And you can make it the owner of your house.<br \/>\n52:11<br \/>\nAnd if you want to use that same LLC to protect your car, you would just follow lien on the car with the LLC as the lien holder.<br \/>\n52:18<br \/>\nIf you want to do it the other way around, you can put a lien on your house and have the LLC own the car while it still has a crypto account.<br \/>\n52:26<br \/>\nThat would be OK.<br \/>\n52:29<br \/>\nBut, for right now, the only thing in the LLC that I've opened is because I haven't cation any crypto, is there anything I'm still sitting on those? Those are in cold storage but, is it OK that my condominium is now in the LLC? It's owned by the LLC?<br \/>\n52:44<br \/>\nThat's fine, Is that where you live?<br \/>\n52:46<br \/>\nYes. Yeah, that's fine.<br \/>\n52:48<br \/>\nThat's OK. Yeah, OK.<br \/>\n52:50<br \/>\nWith that I remember you saying I had taken notes from a while back, that you said it is best, let me tell you. It's ideal to have a second member owner named in your L T, so when is it beneficial, because this is a PMA, and now finally understood gotta wrap my brain around what you mean. I don't have to disclose who is in the PMA, because people come and go in my ..., PMA, entity, and as long as you apply any percentage of ownership to any one of the PMA associates right? They can't tax you correct Or take money out, right? That there isn't There never will be a tax on the PMA. It's only going to be when it disperses funds, to some person, that where it reaches its final destination.<br \/>\n53:34<br \/>\n1 one solo individual of the PM, ALC, right?<br \/>\n53:39<br \/>\nIt doesn't matter who is if he's part of the PMA or not, The funds leave the PMA and go somewhere to a taxpayer.<br \/>\n53:46<br \/>\nSomeone who files a tax return that is going to have to be accounted for.<br \/>\n53:50<br \/>\nThat's always buying and selling and with the LLC as the owner, buyer seller, OK, So you're using only that bank account.<br \/>\n54:00<br \/>\nRight. Well, I can I can do it. I can have several accounts for one LLC, I can also take that money from that LLC and set up a whole new LLC.<br \/>\n54:08<br \/>\nDifferent bank account, I can move money from company to company, OK. So with, with my condo being owned by an LLC whose ownership belongs to the PMA, What's the challenge? What's, where can they come? Not not. That's a nice clean way to do it, either a dual membership or a PMA owner.<br \/>\n54:29<br \/>\nThat's perfect.<br \/>\n54:30<br \/>\nAre those comparable, a dual membership, like, Here's the difference. My LLC either way, it's going to be an innocent party, meaning that, it's away from my, it's out of my estate.<br \/>\n54:43<br \/>\nThere's no one that would have a claim against me and be able to take property from my LLC. That's what I mean by Innocent party.<br \/>\n54:49<br \/>\nSo the owner of it either gives me charging order protection, meaning that the Court will protect it, or it doesn't give me that.<br \/>\n54:58<br \/>\nSo if it doesn't give me that, I'm using a probably a PMA as a single member owner, that PMA as an innocent party because it only does one thing. It owns the LLC.<br \/>\n55:08<br \/>\nNo one's ever going to sue that LLC but if you owned it no one's ever going to sue the PMA. If you own it individually there's a lot of people who could probably see you. You probably do lots of things in this world.<br \/>\n55:18<br \/>\nYou know, you've probably all kinds of contracts.<br \/>\n55:20<br \/>\nYou never even thought about before, but the PMA does nothing, except I own the company.<br \/>\n55:25<br \/>\nSo, when, when we're labeling it as a single member, a single member LLC, the single member is a member, is a collective group of people that are just not being identified, share it, or they are, it doesn't matter, but single member owner in name creates a single member LLC with no charging order protection.<br \/>\n55:45<br \/>\nBut that doesn't matter because you don't need it.<br \/>\n55:48<br \/>\nBecause it's an innocent party.<br \/>\n55:49<br \/>\nIt's completely outside of anybody's legal right to Sue, because it does nothing OK, OK, Gotcha. And then I think those are the immediate questions.<br \/>\n56:00<br \/>\nSo, then, we talked about tap on the last call.<br \/>\n56:07<br \/>\nIt was brought up about the only way to avoid, if I get your name, it, to get up. If you're not on a W 2 for 1099.<br \/>\n56:15<br \/>\nTo be attributed to an LLC, correct? That helps, yes, make it payable to a pass through entity.<br \/>\n56:23<br \/>\nYes, OK, so, if I'm working as an independent contractor and right now, they have my Social Security number, because that's how I would open up an LLC, would you be able to do the next color to showing us, like, what kind of L C could you get to transition out of your personal Social Security number into?<br \/>\n56:45<br \/>\nAnd what is it, EIN, I believe, right, from, from an LLC so that you're in?<br \/>\n56:51<br \/>\nYes.<br \/>\n56:53<br \/>\nI think I discussed that last time, second here, about how to get out of, I think I did a call on that.<br \/>\n57:01<br \/>\nRight, but we kind of touched on it. What I was wondering is if you could do a whole sort of themed video on the do's and don'ts of using an LLC when you're using it as a no for work purposes, right? Like, what, Kate, What types of events or transactions will create taxable event, what you should be doing, or shouldn't be doing? Or do you already have videos on that? Yeah, I think I do.<br \/>\n57:25<br \/>\nYeah, I remember, I think, a few weeks ago, I did one on how to get out of, if you're, if you have an S corp or some other source of income that's, you know, have a certain tax treatment, you wanna get out of that?<br \/>\n57:36<br \/>\nI explain how to get out of that.<br \/>\n57:38<br \/>\nI use a W nine dissolve the company, know, make it through. OK, I was trying to last week. OK. I'll search those out, but I do definitely need a new LLC, if I'm going to transition as independent contractor from me, the person, to an LLC. Correct? Yeah, correct.<br \/>\n57:55<br \/>\nYeah, anytime you're getting the 1099, you can easily switch that over to an LLC, it just takes maybe a phone call sometimes where we go on log into somebody's account, you know, your payroll account or something, or send them a W nine with a letter.<br \/>\n58:08<br \/>\nI have another LLC I have to open, because I've only got the one firm. Credit. Don't have to Yeah. That's how. That's how you do it, yep.<br \/>\n58:16<br \/>\nOK, yeah, I am.<br \/>\n58:18<br \/>\nOK, And then what happens to the money you've earned prior to opening up the LLC, so you can transition what yes.<br \/>\n58:27<br \/>\nIf you earned that in your name, means you're stuck with the reliability, the associates, that to that. Well, that is grandfathering. I mean, really, I mean, it works both ways.<br \/>\n58:38<br \/>\nBecause if, if the IRS, if you can't get reverse your tax liability, that way, they can then reverse a tax liability the way they want. They could go back two years from two years ago and say, Oh, it should be this way, so, yeah, when, the moment you change everything, your tax treatment, then it's going forward.<br \/>\n58:58<br \/>\nGoing forward, OK? Alright. And where would those videos be Transitioning from, you know, from a person to an LLC, with a 1099, I think it was in February. I have to go, look, I may have uploaded already saw, it might be the members area, but I'll go check them to the link for Yes. And then do I have to schedule?<br \/>\n59:17<br \/>\nSchedule another council to open up a second LLC That you can or you can do the order form and just put a note on there that this is the second one And by the way guys. I don't charge more money for another one.<br \/>\n59:28<br \/>\nI just collect the filing fee for you, so it's part of the same unless you have some big project going on So On Ace of coins right John, yeah, right, exactly, Yeah, you can do that right, OK, thank you. Alright for thing Right and then someone's asking you said one time. Yeah, OK.<br \/>\n59:44<br \/>\nSo if you want to buy real estate and you have kryptos and you want to turn those into dollars or put them in escrow in some way, maybe the down payment or something or just pay cash for a house, you can do that. I have a service that does that. It's with my partner. He set up an exchange to do this. It's a private exchange.<br \/>\n59:59<br \/>\nYou'll never even see it anywhere, but, um, if you have an LLC where you're able to sell your coins into the name of an LLC, that's a cheaper way to go because there's a, there's a commission that goes on that transaction.<br \/>\n1:00:11<br \/>\nSo, I would just recommend use your LLC to do that, unless you have some sort of limitation there.<br \/>\n1:00:17<br \/>\nAlright, and then what would I describe the money I used from LSE bang it to my 10 and my 1040 M ICS description line Miscellaneous? It's other income.<br \/>\n1:00:26<br \/>\nIf you take money out of your LLC, that's from a pass through.<br \/>\n1:00:29<br \/>\nAnd if you want to have to report it on your 1040, like let's say you pay your credit card bill or something, it's other income. You don't need 1099 for that.<br \/>\n1:00:37<br \/>\nIt's the same in setting up a bank account in the name of the trust. Yes, it's the same.<br \/>\n1:00:41<br \/>\nYou have. It's just a different way to do it.<br \/>\n1:00:44<br \/>\nThe trust is compatible with the way we use an LLC.<br \/>\n1:00:48<br \/>\nI need to set up a trust account so that I can deposit money that would otherwise be subject to garnishment Exactly. The trust is a third party.<br \/>\n1:00:56<br \/>\nIt's an innocent party, and, yes, that would avoid a bank garnishment, but it will not avoid a wage garnishment at the source.<br \/>\n1:01:05<br \/>\nSo if your employer is paying the money out, if the creditor tries to take it only for your bank account, you're covered.<br \/>\n1:01:12<br \/>\nIf you tried to take it from the employer, you're not covered, unless you're North Carolina, South Carolina, Texas, or Pennsylvania.<br \/>\n1:01:18<br \/>\nAlright, or less, There's some exemption. Like, Florida has exemptions.<br \/>\n1:01:21<br \/>\nThere's other things, too. I mean, if you have a wage garnishment, it's important to you. We can actually create a lien that blocks wage garnishments.<br \/>\n1:01:30<br \/>\nThat's a different subject.<br \/>\n1:01:31<br \/>\nAll right, so I can remain, and I didn't know where the cut is, to raise your hand. I think you waited so long that maybe you already figured that out.<br \/>\n1:01:39<br \/>\nAll right, So if the Epic crypto exchanges are reverting you to their software, and no tenant furnished, there's no record.<br \/>\n1:01:48<br \/>\nAre we assuming they know nothing of it?<br \/>\n1:01:50<br \/>\nOK, so if you don't see a 1099 from the Exchange, none was issue, you have to get one.<br \/>\n1:01:55<br \/>\nThey're not going to make a mistake.<br \/>\n1:01:57<br \/>\nI think it's all automated.<br \/>\n1:01:59<br \/>\nNow, if you're not sure, and again, this is what I did cover the other day.<br \/>\n1:02:02<br \/>\nIf you're not sure if there's 1099 posted to your, here's some technical language, everybody has the IRS records whose ever filed 1040, you're gonna have something called an individual master file.<br \/>\n1:02:14<br \/>\nThis is your accounting ledger that needs to be reconciled.<br \/>\n1:02:16<br \/>\nThis is where, when you file a tax return, it creates the need to reconcile, OK.<br \/>\n1:02:21<br \/>\nSo there's an individual master file and a business master file, and you would use form IRS Form 4506 dash T You can Google this on the Internet, and then look at the top right corner to make sure there's an OMB number on there, I don't know what the numbers is, 15, 45 or something.<br \/>\n1:02:39<br \/>\nSo, that's the official government form. And in the middle of that, you put your name and information, your SSN, all that stuff. And then, you check the boxes as to which transcripts you want, and you'll see in there, it'll make sense, it's self explanatory, You'll want your 10, 99 and everything. This is another way to check and see what the IRS knows about you, if you're not sure if something was reported.<br \/>\n1:02:57<br \/>\nBut yeah, the exchanges are supposed to tell you, they're supposed to give you a copy of 1099.<br \/>\n1:03:02<br \/>\nAll right, and Rebecca, what I found the inner, OK, so the inner circle is about up here.<br \/>\n1:03:06<br \/>\nI was talking to my partner day, and it should, it should be showing up, Well, let's say this month, OK, we're gonna probably do a live Q&A on that. It's going to be, it's going to be really cool.<br \/>\n1:03:16<br \/>\nBy the exchanges are trying to get people to volunteer and contract with the IRS when it was not recorded, but if you didn't exchange crypto back to far as well. Maybe markup a tree. Yeah, yeah, that's interesting.<br \/>\n1:03:28<br \/>\nI mean, I don't know if they're trying to create a contract, but they're trying to induce you to do what they want you to do. So. Once you know what your rights are, and know the law, and how your heart, what creates the liability, you, it's pretty easy. It's just very easy.<br \/>\n1:03:40<br \/>\nThat's why I'm not too many of all this stuff, I mean, it's just sales pitch. What was coupon code? OK, so I will give you the, I'll give you the coupon code. So, if you've already paid for service during the membership or anything like that, Consultation or order to accompany the coupon code to, Schedule A call with me is going to be free, C O N 2022.<br \/>\n1:04:02<br \/>\nAll right.<br \/>\n1:04:03<br \/>\nYeah.<br \/>\n1:04:04<br \/>\nYeah, you don't have to have your LLC in the same state. I know a lot of attorneys try to get you to do that. You can have the LLC where it makes sense for you to do that.<br \/>\n1:04:11<br \/>\nI mean, I I base it on a state That doesn't doesn't send me lots of notices. I would stay away from California. New York. New York, kind of like, it's like an anchor, you know, It just kinda sticks you sometimes because of the crypto world.<br \/>\n1:04:24<br \/>\nBut, yeah, she's a state that makes sense. I mean, I'm in Florida. Florida is actually pretty friendly, state my opinion, to set up a company. I've set up many over here. My daughter has one over here. So, yeah, try to get a waiver. That's right. The rules, different for a brokerage account.<br \/>\n1:04:38<br \/>\nNo, it's not the rules, I mean, Now the rules are not mean brokerage accounts. Maybe you have SEC type rules, but bank accounts have FinCEN Rules Financial Crimes network. There are very similar. You have the same KYC, a second overlay on top of everything. So if you can do something at a bank account. You can pretty much do it at the Exchange Trade account for stock trading. Yeah, so I'll check and see. I'll follow up. So, all right. Yeah, I am going to be you know hiked the Appalachian Trail, but I believe it or not. I will be available. I will have my phone with me. That's crazy.<br \/>\n1:05:10<br \/>\nBut that just means that sometimes it's not as easy to get me. if it's the if it's easy at all. I should say that.<br \/>\n1:05:16<br \/>\nAlright.<br \/>\n1:05:17<br \/>\nSo, here is KY, Proust's I say that right.<br \/>\n1:05:24<br \/>\nA page on its kind.<br \/>\n1:05:27<br \/>\nI've Got a quick question for you. You've spoken a couple of times since October and we decided our strategy was to create a holding company in Canada in Ontario. So I was creating a holding company here, Go ahead and do that then you're going to send me the, The changes to the Incorporation so you're right.<br \/>\n1:05:51<br \/>\nAye.<br \/>\n1:05:52<br \/>\nMade the corporation last week and I immediately got a e-mail saying that I had to do an initial return and I was immediately leery of that because I think the goal is to not do any returns at all.<br \/>\n1:06:09<br \/>\nI looked in the into the Ontario Corporations Act, and it says, Every corporation, others an extra provincial corporation, or a corporation of a class exempted by the regulations shall file with the minister in an initial return. So I just want, What should we? Should I change strategies and use a different, because there's other ways we can incorporate.<br \/>\n1:06:37<br \/>\nUnfortunately, stay with there are other ways to do this. This is new territory for me.<br \/>\n1:06:41<br \/>\nI'm not sure, But notice how what they're doing there. Once they, once you file a return, you create a tax classification.<br \/>\n1:06:49<br \/>\nThis is the same thing in the States. So I would just suggest to you that you not file a return, because here's an example.<br \/>\n1:06:54<br \/>\nLet's say you set up the company, then you convey your moms house title that she lives in. She's the only one that lives there.<br \/>\n1:07:02<br \/>\nShe compares it to the company for estate planning purposes to take it out of her estate, It's for your benefit. Maybe you and your brothers benefit, and she doesn't file a tax return. Why?<br \/>\n1:07:10<br \/>\nBecause, it doesn't do anything.<br \/>\n1:07:12<br \/>\nIt just holds the title, the real estate, there's no tax on there, anything, so I know that you can do that.<br \/>\n1:07:16<br \/>\nAnd that's the definition of a holding company.<br \/>\n1:07:18<br \/>\nAnd I did the research on the holding companies in Canada, among other states, even, I did some in the UK, and they, they do recognize holding companies, and they do have some filing like filing returns, OK.<br \/>\n1:07:29<br \/>\nIt's the same information you're going to see here in the states.<br \/>\n1:07:32<br \/>\nNow, I've never seen a law or statute in the States saying what you just said, Canadians, great, So, and that's probably a law I'm guessing here what we have is website commentary or Circulars. So I would just not file and see what happens.<br \/>\n1:07:46<br \/>\nAnd I would be curious if, you know, if you get something I noticed, or something, if you would, please let me see that you give 60 days from from the we're creating the corporation, and all this is yeah.<br \/>\n1:08:02<br \/>\nComply with requirements in avoided complaint complaints action, that may result in cancelation of corporations, but again, this may it's they're not they don't say, what kind of corporations are exempt. one example.<br \/>\n1:08:15<br \/>\nSo, you know.<br \/>\n1:08:16<br \/>\nYeah, and I'll give an example.<br \/>\n1:08:17<br \/>\nSo in Kentucky and Oregon, I've noticed when we do an LLC there and those states will get a letter from the, the tax people, the Department of revenue, for the state, because they work together, right?<br \/>\n1:08:29<br \/>\nSo, they'll send a letter and say make it craniums we haven't received your tax rate is above in ukraine's.<br \/>\n1:08:36<br \/>\nAlright, sorry about that.<br \/>\n1:08:40<br \/>\nYou can unmute if you want to.<br \/>\n1:08:43<br \/>\nIn the end, the State of Kentucky in Oregon says you didn't follow return and so we think you have employees and you're paying wages and we think it's this much money and they'll send you this letter.<br \/>\n1:08:54<br \/>\nAnd so, I have a standard response. You'll see my review first file, OK? If you go through there, you'll see, we just write back and say, no, we don't have any employees, this company doesn't have an employees, and what records are you relying upon? And that's, that's the end of it, you know, most of the time. So, yeah, so let's see, I'm, that's what I'm thinking. I'm thinking you're gonna get a letter like that. And I'd just be very interested because what they'll do is they'll site some law and I'll go look it up.<br \/>\n1:09:18<br \/>\nAll right, all right, all right.<br \/>\n1:09:19<br \/>\nYeah. I'll look for the Articles and see what we need to do there.<br \/>\n1:09:22<br \/>\nSo all right, I appreciate that. Thanks, OK. And for the PMA if the banks want to give you a hard time, You know, here's what I like to say to the Banks, OK? What is your problem with the PMA? Well what does that? It's not even the account holder, your account holders, the LLC. We're talking about a non account holder for what rules apply to non account holders.<br \/>\n1:09:37<br \/>\nIf you need to.<br \/>\n1:09:38<br \/>\nJust put a note on there saying that I'm the trustee for the PMA and then I'm the only member, Right? And that usually gets you right right in there that they'll be fine, OK?<br \/>\n1:09:47<br \/>\nJust try it. You know, that's an easy way to get around with their, they want to investigate it. Real quick question. Sorry to interrupt. I haven't, we haven't changed. So right now, on the sole owner of this corporation, we haven't changed the ownership yet, Should I go and get all my bank accounts, and all, that kind of stuff now, because it will just solve it, will make it easier. And then, and then we'll change the great ..., that's the whole idea. Yep.<br \/>\n1:10:13<br \/>\nAll right, thank you.<br \/>\n1:10:14<br \/>\nAll right, and TD.<br \/>\n1:10:16<br \/>\nHey, John, Jay, thanks for taking my question. Sorry, I have to file at 10 40 under my SSN. The crypto question there is data have any crypto transactions, mm, wow, I did, I did have money going from my bank accounts to Coinbase, Gemini, et cetera. I would do the crypto out of there to hardware wallets.<br \/>\n1:10:41<br \/>\nAnd from then on everything when to like trust. So, there is no tax liability, or anything?<br \/>\n1:10:48<br \/>\nBut, can I still answer?<br \/>\n1:10:50<br \/>\nNo, because they're, Initial deposit of fiat was from my SSA account.<br \/>\n1:10:57<br \/>\nNow, that's OK, it doesn't matter where the money came from, what I would, I recommend, and I've recommended this since 20 17, if you did not get 1099, say no.<br \/>\n1:11:06<br \/>\nYeah, does, does nothing coming, I checked with all of the exchange? is no perfect. Now, if you still lose sleep at night from doing that, I see no problem to say yes.<br \/>\n1:11:16<br \/>\nIt's not a financial question, and if I ever, several wanted, they could, they could audit you, so I don't see a problem saying yes because you did not have a tax liability just by buying kryptos.<br \/>\n1:11:26<br \/>\nGreat. Thank you so much OK, Good question, Alright, Wayne, would you go?<br \/>\n1:11:31<br \/>\nHey, John, doctor Basic filing taxes question. I have two daughters, 19 and 18 that have never filed taxes before, but of course, they got little jobs, and so they received a W two wage. Do they have to file taxes? I would highly recommend they never do.<br \/>\n1:11:47<br \/>\nI don't care if the withholding and they're gonna get money back please have them don't do it, because they can always learn how to make more money, and just consider that cost.<br \/>\n1:11:55<br \/>\nBeing a wage earner, OK. Right, OK.<br \/>\n1:11:57<br \/>\nOnce you, once you get hooked in that system, you, it's hard to get out, you know.<br \/>\n1:12:01<br \/>\nYou're always kind of in that system, and You're not saying people, People always say, Well, my gosh, John, if, if I try to get a mortgage, they're gonna ask me for tax returns.<br \/>\n1:12:09<br \/>\nNo problem.<br \/>\n1:12:10<br \/>\nDo them do a tax return.<br \/>\n1:12:13<br \/>\nJust don't file it, Don't file it, and on the signature line, you can get, you can make yourself a stamp that says, File Copy.<br \/>\n1:12:20<br \/>\nOr you can read and write it, stamp it down there, and then you give that to the bank.<br \/>\n1:12:24<br \/>\nMake it all right, scan that, OK?<br \/>\n1:12:26<br \/>\nAnd I didn't, I didn't make this up, this is during the time, when these real estate investors, I got a lot of help from real estate investors, and I called them, ask, Hey, guys, what do I do? I know I'm working with a non filer and that's what they would say and the banks happy with that.<br \/>\n1:12:40<br \/>\nUm.<br \/>\n1:12:41<br \/>\nThe other thing you can do is a Balance Sheet with an Income Statement.<br \/>\n1:12:45<br \/>\nNow, I'm not sure if there's some criteria, like, for example, maybe they want a CPA to, you know, approve it or something, I don't know. But to make it easy 1040 that's not filed.<br \/>\n1:12:53<br \/>\nThat's stamped file copy.<br \/>\n1:12:55<br \/>\nAlways get some, that, remember, that was in the days, that was like 12 years ago, when they were doing the, not no doc loans.<br \/>\n1:13:02<br \/>\nThere were gearing up for the mortgage crisis OK, just just to add on to one of the daughter, she has 1098 T, which is a tuition payments received for qualified tuition, does that matter as well?<br \/>\n1:13:18<br \/>\nWell, they're good income, and I don't know if it's a taxable thing. I would assume it is.<br \/>\n1:13:23<br \/>\nSo what do you, What do you think about that, I mean, what are you asking me, as their tax liability? There needs, should, should shape file taxes based. I mean, not face off the W two as you say. They know, don't, don't get them into the system, which I agree with you, OK? With the 2098 T, does that change anything? No chicken, OK, 99 all day long. You can make $30 million a day.<br \/>\n1:13:44<br \/>\nHundred 99 for that, as long as she's a fellow 10 40, the Iris will never look at her.<br \/>\n1:13:49<br \/>\nJust take over the years. I've just, I was shocked when I realized that that's actually how the system worked.<br \/>\n1:13:54<br \/>\nSo, that file.<br \/>\n1:13:55<br \/>\nAnd don't file, excellent. system, please. I, I did that with my children, they know.<br \/>\n1:14:03<br \/>\nYeah. They look at me like, I'm crazy too, So, I mean, you know, We are, I mean, and they did it to us, because we're married and have children. So, that's how we got that. All right, Thanks very much.<br \/>\n1:14:17<br \/>\nAlright.<br \/>\n1:14:17<br \/>\nSo, an LLC is creating another person and it's a new person with, uh, fresh start in life, let's call it. And it can do anything as long as, you know, as long as it will be recognized by the state, the government, or the laws, or whatever. As long as it's not hurting people or breaking laws, or you're not using it as a vehicle to break laws or defraud people. Yeah. It's a new person and it can do pretty much anything.<br \/>\n1:14:40<br \/>\nAll right.<br \/>\n1:14:42<br \/>\nAlright. Anybody else?<br \/>\n1:14:46<br \/>\nAll right, I have A Record a call I have to get on and It was a joy talking to you guys. I?<br \/>\n1:14:53<br \/>\nappreciate you joining me on Friday I hope you all have a really great weekend.<br \/>\n1:14:57<br \/>\nI'm a sign off, so. No. OK, I'm gonna.<br \/>\n1:14:58<br \/>\nPost this recording: Shortly, I Already Already about.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-847a542 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"847a542\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fb77e63\" data-id=\"fb77e63\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5751e22 elementor-widget elementor-widget-spacer\" data-id=\"5751e22\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4e04fe9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4e04fe9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-31ec7a3\" data-id=\"31ec7a3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-efac947 elementor-widget elementor-widget-text-editor\" data-id=\"efac947\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. The discussion was focused on the IRS collecting information from crypto exchanges, such as Coinbase, and potential privacy concerns associated with this.<br \/>2. The speaker, John, discussed theories on why the IRS might be seeking this data, including the potential for the creation of case law and focusing resources on specific areas.<br \/>3. He highlighted the transparency of the blockchain, suggesting that the IRS could potentially track transactions if it had the technical capabilities, but currently it doesn&#8217;t appear to do so.<br \/>4. John discussed potential tax implications and ways to manage tax obligations in a crypto context, emphasizing the potential for audits.<br \/>5. He considered the importance of understanding the tax obligations when participating in crypto transactions, even when involving family members or friends.<br \/>6. The possibility of setting up private entities or partnerships for crypto investments was discussed, along with the potential tax obligations arising from such arrangements.<br \/>7. John discussed the potential for the IRS to adapt and use blockchain technology in the future, suggesting they might be preparing for this transition.<br \/>8. Questions were raised about how the IRS handles situations where tax returns are not filed or are incorrectly filed, with a discussion on the legalities involved.<br \/>9. John responded to questions about setting up LLCs for crypto investments and the advantages of doing so, including legal protections and managing tax obligations.<br \/>10. The session concluded with John advising attendees on how to handle potential tax liabilities, emphasizing the need for accuracy in reporting and understanding the changing nature of crypto tax regulations.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e5ff684 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e5ff684\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-ac03b0d\" data-id=\"ac03b0d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>U69 &#8211; March 11, 2022 Discussion Crypto Exchanges Reporting &#038; IRS Fishing<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/22472"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=22472"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/22472\/revisions"}],"predecessor-version":[{"id":25736,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/22472\/revisions\/25736"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=22472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=22472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=22472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}