DuncanBoaz wrote:Here are some Solutions for all you idiots that "Feel" some type of way about Paying Taxes for a Government that fundamentally gives you Access to Water, Electricity, and Protection from Foreign Entities - CHECK YOUR PRIVILEGED. Christ almighty you're able to run some of the most sophisticated machinery and computational equipment ever produced.
...if you think that Government is what's providing *any* of that, or access to that, I got a seafront property in Denver I'd like to sell you...
Steve Sokolowski wrote:
I don't want to drag on something that I think has been made far too big a deal of already, but I just want to say that the rationale for the forms is the following. Our business model is that we purchase hashrate from miners, use it to mine the most profitable coin, and then pay them a debt owed in cryptocurrencies that they choose (or dollars, if they choose that). There are documents from the agencies that back up that it's perfectly legal to purchase computing power from people, but buying things from suppliers requires sending these forms. But again, the number of affected customers is probably going to be something like 4%. This is not the end of the world.
What you do with the forms, and how you interpret your tax liability, is up to you. While there might be one out there, I wasn't able to find any cases of miners being sued by the IRS. We are not making a statement as to whether you owe taxes, we're just giving you paperwork and you decide how to complete your own taxes.
Plus, I'm not an accountant, so you can't take my word on this, but you might want to look into deductions for electricity costs and the cost of the equipment itself, if you determine that you owe taxes.
...wait, what? Holy mother of tapdancing politicians. I grew up around and dealing with politicians, and I have to say - most would be green with envy over that tapdance you just pulled in the first paragraph. Not even Nicehash could get away saying it like that, and still have the balls to claim their customers were independent contractors requiring 1099 filings!
To clarify, the website improvements/changes are small potatoes to the whole "btw you're all gonna get 1099's for christmas & new years, lulz." crap that was tossed into the end of this thread release.
You operate almost *EXACTLY* like any other pool out there that I can connect to with a start.bat file, the only difference is the multi-coin payout (which others are doing as well now). For that SERVICE, your CUSTOMERS pay you a 5% fee, taken out before rewards are credited once per day (or when threshold is met). We are not selling you hashpower, it was clarified in other posts/threads I read months ago that the 5% FEE out of OUR PPS earnings was to compensate YOU for your multi-coin algorithm software, the fact we are saved the time & effort of having to keep & maintain multiple wallets, and having to spend time & energy bouncing between exchanges, trying to sell the mined coins/fragments of coins, to get the payout coin we wished to earn initially.
If we were selling you hashpower, that means there would be a buyer system just like Nicehash had. That would mean there is a contract system set up for X amount of kh/mh/gh being purchased for X period of time at X value aimed at X pool, to be paid out to X wallet. That system is *NOT* in place here.
I agree with the earlier posts. Get a new lawyer, because I have no idea where he bought his degree - he sure as hell doesn't know what the f**k he's talking about, if he's encouraged you to follow this business model - you won't HAVE a business. Other users have posted multiple actual sources contradicting your statements as being valid, as well as the literal clusterf**k you're about to cause yourself financially as well as socially, and I'm pretty sure you ignored them.
Your estimate of 4% lost workers... lol. You have what, 10k registered users presently? I see 5k~7k at best connected workers, are you telling me that a mere few hundred/couple thousand are from the USA only? That means, at best, you're a US based service offering foreign miners a place to mine and be paid back in multi-coin. Based on the links already shown regarding the 1099's, you'd still have to withhold the value earned for them (at a different rate), if not straight up offer to send them equivalent documents for their own country tax forms (per another person I spoke with in the EU). You have an international tax lawyer set up for that? Gotten yourself well versed in 140+ countries tax laws yet so you don't accidentally trip Interpol or another nations version of the IRS?
More like you forgot to add a zero there. Small time miners may make up only about ~40% of the overall network hash power, but number wise make up nearly 80% of the miners worldwide. That college kid with a couple gaming cards (or some nice roommates letting him use their comps too), earning that extra ~$1000+ a year is going to make a major difference in his life, but f**k reporting it for tax purposes. The lower wage worker who saved up and bought a gaming computer, and can earn an extra $60~$150 a month, isn't going to be aiming at a pool that requires him to submit more private information and be taxed even further into the hole.
The bigger fish with gigantic processing power? They're either going to evade via VPN, move out of country, or operate through an LLC or foreign-held friends/partners who hold the wallet & private keys... or slush through monero/multiple pools/solo mining, and keep their wallets well hidden. A very small percent would willingly declare cryptos as income or put them on their tax forms. Anyone who says "the bell won't toll for me" obviously hasn't paid attention to California or Hawaii as perfect examples of why NOT to trust the Federal Government to protect you, but rather punish you for being a "perfect law abiding citizen".
You also, at least in appearance, didn't take into account that the x11 algorithm is nearly dead. Unless someone does something soon to revive it, or find some way to repurpose the joke that was Bitmains D3 line, that is probably well over half the connected miners gone by deprecation within the next 3 months, *at best* - if I read the present processing power on this pool correctly. This decision is more far-reaching than you've mapped out, because of this disconnect you have with the reality on this side of the mining pool.