Tax Evasion and Money Laundering

Discussion in 'Taxes and Accounting' started by OTCkrak, Jun 20, 2007.

  1. This thread is strictly hypothetical.

    Lets hear some creative ways to avoid paying taxes . Traders in my opinion are the most cynical people in America and im sure many contemplate this issue almost every day.

    I have some ideas in mind and ill share once we gets some responses. No statements made within this thread is a confession to any crime and all comments are for entertainment only. THANKS
  2. weak:mad:
  3. trade options only and never report them....
  4. Denounce your US citizenship and get a new passport and move to Panama.
  5. Oo even better, move to Panama as a Pensionado and trade options in the U.S. markets and never report them. No U.S. tax and perhaps no Panama tax..

    hmmm .. :D
  6. Div_Arb


    Hey OptionsCoach - I strictly trade index options and I tried not reporting my gains in 2005. I then got a letter from the IRS saying something to the extent of, "hey man we got this 1099 from XYZ broker - send us the cost basis for your trades, or you're paying taxes on $x million of total proceeds." I am waiting to hear back from them before I write a check, but I do owe them money. How does this work for you, and how are you able to avoid the IRS?

  7. Whoa.... LOL I dont avoid the IRS. Shhh they maybe reading this!

    I am saying that for a long time brokerage firms on the whole did not report option trades to the IRS like they do stock sales. Firms have started doing so recently since they are better at record keeping. But I am sure there are still a few firms who do not report them. If not then loophole closed lol.

    But I remember in the 1990s the firms I used never reported any option trades just stock sales/interest etc...

    EDIT: IB says they do not report option trades on 1099B:

    Titled Proceeds from Broker and Barter Exchange. This form reflects all proceeds received from SELL trades of stocks and bonds (including short sales). This includes sell trades resulting from the exercise or assignment of stock options. BUY trades are not reflected in the 1099B. The 1099B does not reflect capital gains or profit or loss from securities. It is the customer’s responsibility to calculate gains or losses. No option, forex, or single stock futures trade information is included on the 1099B. Commissions have been deducted from the trade proceeds reported on the 1099B.

    I am not sure if they report them eslewhere so maybe an IB account holder can confirm this?
  8. sps_45


    Exactly, my past brokers only report stock sales and interest. So its your responsibility to report basis on stock purchases and both option purchases and sales.
  9. gov


    Yes, that might work, right up until you get looked into. Then, the failure to report the known items (it's not like you could say you forgot) would certainly be some kind of tax fraud felony...

    The best way is to structure your trading to best take advantage of existing laws to minimize your tax burden, enjoy the lifestyle trading provides and get out and experience life without looking over your shoulder all the time. I'm taking an early Friday after a nice week. Cheers!
  10. Uhh did you completely miss the point of this thread or what???

    Re-read the title..

    #10     Jun 22, 2007