 All right, everybody welcome to the impromptu live stream on Wednesday and just like the title and thumbnail suggests We're gonna dive deep Well, just an overview of what's going on for this new law looks like it's us code 6050 i and there's been a lot of talk Especially about in the Twitterverse and on different social media sites that this law goes into effect And it means that if you don't report the $10,000 plus of your crypto within 15 days you're gonna face a felony charge and I didn't really know much about it I just thought that was going on to reach out to somebody that could help me She-han Chandrachara comes on as the crypto CPA she and welcome back the show for the six or seventh time I think yeah good to be here Yes, so actually like I had heard about it and then you reach out to me And I'm like, I don't know what really is going on But before we get into into all that stuff I just want to remind everybody that if you're watching the replay just know that there's gonna be a scam Video because that's what YouTube is all about and it's gonna be an AI video. It's gonna look something ridiculous like this It's gonna be Michael Saylor It could be any number of people that are big into the in the crypto space and they're gonna say scan this code And I will give if you send me one Bitcoin, I'll send you to news flash. That is not reality What is reality? Unfortunately is tax codes and this is everybody's favorite subject taxes I'm sure and this was actually what was sent to me This is Ryan Sean Adams and over the over there at one of the duo for bankless And he states if you're a US citizen and get 10,000 thousand one crypto You have to report the IRS within 15 days or they can charge you with a family felony that starts today They want your name your address your social carry number of the sender and they're not telling you how to file the report Which I got to be honest with you It's very easy to pile on the government especially when you see stuff like this and also I saw the same thing from Jerry He's the exact director of coin center DC base crypto think tank He says the exact same thing if you receive 10 care more and you know report it within 15 days You get a felony charge So I reached out to Sheehan and I was like is this true because if it is I'm in big trouble and he said no So let's go over this 6050 I code and what this really means Sheehan. It's up to you Cool. Um, so I guess let's start with the current law, right? So basically the 6050 I Code section of the IRS says that if you run a trade or business in simple terms of business And if you receive Paper cash in excess of $10,000 in a transaction. Let's say for example, I go to a dealership Like a car dealer Instead of cutting a check or giving my bank on information. I just give them You know $20,000 worth of Paper cash in a double back and buy a car. Sounds good. That's what I do If that were to happen the dealership has to collect my personally identified information meaning my social security name address and etc and File a tax form called form 8300 with the IRS and the FinCEN. So that is a rule Okay, and you might ask why people why we have this rule. It's to combat against you know money laundering tourist financing Because otherwise, you know there, you know, you can earn, you know money to illegal means and and kind of convert it to goods and services without, you know Without being caught. So that's the idea behind this existing laws that applicable to cash transactions Okay, so let me get this straight. So what you said So I go into the dealership and I want an upgrade for my 2018 Dodge Grand Caravan Which is a sweet ride? I must I must tell you very good in gas mileage very great in space and I come in there with the $23,000 that it costs and the dealership Dick Poetoyota and El Paso, Texas or wherever else or or Hinda here in Puerto Rico They say hey you just gave us all this money We need to collect a bunch of information from you because we don't want to be held responsible for your money laundering activity Which we're not saying you do but if you are we have your information and we can report it So that has always been an effect. Is that correct? That is right. Okay. All right. So now let's Flip on its head and talk about this new rule because has this law been in effect The 6050 I and there's been some changes to it to include virtual currencies Yeah, exactly. So the 6050 I has been in effect for a number of years But a lot of people don't encounter this because not many people carry that much cash and and buy like, you know, goods and services So what happened in 2021 was that infrastructure built has and as a result They subjected digital assets to 6050 I regulations So going back to our example Instead of me giving cash to the dealership if I give like one bitcoin and buy a car worth, you know, You know, $50,000 or so Now that the dealership has to collect my information And file that form 8300 with the IRS and the fintech. So that that's the change that happened And of course when we're talking about a felony charge, this isn't for the individual Let's just say, okay, let's take this example. So the same example as well. And I'm like, hey, I've got a bunch of Dogecoin and I want to buy that dodge grand caravan So I'm going to give this to you. Do you have a wallet? And they say, yeah, you know, for some reason they're like, yes, we we love dogecoin here at the dealership You give them dogecoin and they don't collect any information from me If they do that, then it's it's on them as the business owner, correct? It's not on me as the one who actually spent that crypto That that is correct. Great. So now all they got to do you're telling me is I got to find somebody Now I'm just kidding. I'm not going to go down that rough She can't hear you. She's telling me I just got to find somebody who who will accept my crypto Ask me for any kind of paperwork. Excellent Okay, so we have that down it makes a lot of sense. Is that it to the rule? How did we How did we get this so misconstrued because I've seen this in a lot of different social media platforms And you know, we're talking about hey, if you get $10,000 or more, it's automatic felony within 15 days Where do we go along here? Yeah, it's this key term Trade of business. So in our example, the dealership is clearly running. What's called a trade of business, right? You know, they're in the business of selling cars. Therefore, they have a business of selling cars So and a lot of people thought that like, you know, this is applicable to Everybody like even individuals even if you don't have a trade of business And I think what I was trying to clarify on Twitter is that the 6050 I again It applies only to trade of businesses meaning like You know, you should be able to carry like some type of economic activity. It could be, you know, selling cars I don't know selling something As a business if you do not do that as a business You don't have a trade of business and therefore 6050 I does not apply to you So how does that let's say so any kind of Transaction, let's just say it's me to you And I'm like a she and um, you know, thanks for Oh, I don't know for any kind of No, we can't say cpa. So we got an actual business, but I say, hey, you know, here is The 20 000 that I owe you from the bet that I lost because the cowboys lost last week or whatever it was If I if we did that, is there any kind of laws that say that I have to You know put it put in some kind of information with the irs that I've transferred that types of funds to you so in that case, you know, uh Assuming I don't run like a professional, you know, right service. I I I don't have a trade of business That was just a one time receipt coming from you And I don't have any obligation Yeah, excellent. Yeah All right, so everybody that's just what I wanted to get across I'm not going to beat a dead horse So like just be careful with the information that you get out there especially on the twitter verses and the social media sites because uh It's it's all about sensationalism and even I delve in that as well I mean you saw the title and the thumbnail it's to get your attention, you know But I don't go too far to where it's like get people get people heart attacks I just want to give you the best information we possibly can all right So shian that would take care of that piece unless there's something else that we missed But what I'm going to do is I'm going to open it up for for a quick q&a because I know you've got Things going on another 10 minutes or so. So everybody if you want to ask shian here who is a certified CPA and that dales and crypto specifically now would be the time to ask that and uh I got a question for a shian what's uh These are there any new laws that we're not familiar with that are coming on the pipe That could change things. I know last time we talked which the last video we did I don't know if you knew that but it had like a it had over 150,000 views And it's the one that we talked about about The government trying to ban Non custodial wallets, which is like, which is a great video. I urge everybody to take a look at it But any other laws coming in that could affect us as crypto users? No, I think the uh, the 1099 thing that we spoke about in the previous video That's going to be huge when it gets finalized The 6050 is going to be controversial as well It hasn't been finalized or anything like that that the law goes into effect January 1st to in 24 It does not mean that you have an obligation to report today because in order for a law to be effective You had to have like regulations Meaning the IRS has to come in, you know, kind of update the forms and kind of give you specific information So it hasn't happened yet So so you still have some time to kind of like, you know, figure out how to comply with the 65TI But just to summarize, yeah, the the the 1099 stuff and the 65TI There was a kind of like the two crypto tax-related rules that that that's going to have a big impact on the industry Gotcha. Excellent. So yeah, everybody, I will try to link this in the description Here was a video I was talking about look at 147k. Excuse me. That was just an impromptu video. So Hopefully hopefully she and you get more Followers for on your twitter account. All right, she and it's 540. I don't want to keep you I know you got another other meeting everybody I'm gonna stick around. We're gonna talk about This dump today that happens in the market and go from there Everybody if you want to find she hand there's a link in the description for his twitter account And of course his link train everything's there. She and thanks for stopping by where you appreciate Thanks for having me. See you. All right. See you All right, everybody. That was good stuff Let's talk everybody's been talking about this. Let's just go over this real quick And everybody knows why there's a dump today. I'm assuming because everybody their mother was talking about this It was just from one report from uh matrix port Where they said they this is their belief is why the sgc will direct the bitcoin ets and basically it come down to it came down to politics And why gary wouldn't approve it and one of the things they said was what one actually one of the things I said which was uh political Political divide and they're right in this one instance or as far as like The commissioner is it's gary caroline and haime and those are the three democrats and mark and hester pierce crypto mom They're both the republicans and it looks like they've mostly sided with gary So we'll see how it actually works out, but that was the reason for this dump today. I don't really care about Dumps or pullbacks and things like that what I do concern myself with is how this I have never heard of matrix port ever It's just amazing to me how one article can drop Bitcoin I think it was by 10 45 It's quite a bit 45 to 40. No, it wasn't 10 it's 7 roughly so That's the the thing that that concerns me and of course people say ah rob every every markets manipulated. I know that's true I mean Gold and precious metals jp morgan did that as well and they got they got busted for spoofing the markets But uh concerns me that our market is is controlled and manipulated that little bit for one stupid article that came up It says hey, we think this is going to happen and everybody lost their mind So it's just a good lesson. I think that's uh As we move forward that stuff like that's going to happen So I know people are like well, i'm going to go long i'm going to go short i'm going to go on leverage Did you see that coming? Did these leverage plays see it coming? No, the one they saw coming was an etf Potentially getting getting passed. I'm still on the fence about that one But uh, that's why I have the rules on the side But of course everybody can do what they want to do today. So look everybody. Thanks so much for stopping by I appreciate you like today's video give it a thumbs up instead of subscribing Everybody talk about his time sensitive. That's it and I will see you guys on the next one. Thanks so much adios