Prohashing Mining Pool Forums

mining4fun wrote:

overlordx wrote:Another issue to consider is without Form W-9s from the Miners how is the Mining Pool going to issue 1099s?

Exactly, how is a 1099 going to be issued?

The forms will be mailed to the address you submit on the "settings" page, if you state that you are a US customer. Otherwise, you won't receive a 1099 form.

As to the issue of payouts being withheld, we reserve the right to withhold payouts if a person exceeds $600 in earnings before submitting either the information, or a certification that they are not a US citizen. For now, Chris has the system configured to withhold earnings until we can figure out for sure what to do about non-submission of the information.

Steve Sokolowski wrote:

mining4fun wrote:

overlordx wrote:Another issue to consider is without Form W-9s from the Miners how is the Mining Pool going to issue 1099s?

Exactly, how is a 1099 going to be issued?

The forms will be mailed to the address you submit on the "settings" page, if you state that you are a US customer. Otherwise, you won't receive a 1099 form.

As to the issue of payouts being withheld, we reserve the right to withhold payouts if a person exceeds $600 in earnings before submitting either the information, or a certification that they are not a US citizen. For now, Chris has the system configured to withhold earnings until we can figure out for sure what to do about non-submission of the information.

Taxation of cryptocurrencies is an emerging area of the law. As most of us are aware that there are significant differences between many of the alt-coins. My understanding is that alt-coins cannot be exchanged directly for fiat currency. There is an argument that if something cannot be exchanged for a good, service, or fiat currency then it has no "fair market value". If something does not have a fair market value then there may be no need to report it on a 1099-MISC. If the the Mining Pool was able to get a determination of whether alt-coins have a "fair market value" then it would be of great benefit for all of the Miners, and probably the Mining Pool too. One such method is to obtain a letter ruling from the IRS. There are other methods, but those methods are too complicated for a forum posting.

so holding/getting paid in verge, so there is no sale of verge to bank...would not get taxed at the fair value its computed at, at the time of creation?
But if I choose LTC and since it can be exchanged to a bank fund via any number of exchanges, it can be taxed?

I think the initial law was setup for bitcoin, and then was later expanded for all offshoots of currencies that use the blockchain ledgers.