Many of you have been asking me what I think of this, so let’s review the latest IRS Letter Ruling, 2019-24: Although I haven’t been able to locate this in the Federal Register, maybe someone else is better at searching it than me.

The following has always been my premise on the matter and it has resulted in the Secretary of the Treasury issuing determination letters in agreement. “If you cannot pay the tax in Bitcoin, then it’s not taxable.” These are my words of course, but you can read the article and the Secretary’s response for yourself at

But let’s say I’m wrong. You would be a fool to receive any asset in your name, especially as a U.S. Citizen. This is more astounding when you realize that you have many choices of how you can receive, spend and manage these “coins”, whether or not anyone can establish ownership from an address on the blockchain. How can this revenue ruling create even just one new question in your mind?

If you receive coins through a reporting third party such as Coinbase, in your personal account, that is not taxable as we’ve already obtained written determination letters from the IRS on this point. However, why not just use a tax deferred account, such as a limited liability company or other structure? Why not use encryption (e.g. a VPN) and hard wallets or decentralized software wallets or paper wallets or even a washing service? You have so many choices, why is this even a question?

I don’t mind paying taxes, but it seems quite unreasonable that crypto-graphic currency should have this huge carrying cost in the form of paying taxes before you even sell them for the actual currency being taxed. We don’t do this for precious metals, real estate, even securities, unless some amount of dollars (USD) is paid to us because of our ownership in the property, not simply because it’s worth something in the currency being taxed. It is the government fiat currency that is being taxed, not crypto-graphic currency. But if you report the value of the crypto-graphic currency in USD, under penalties of perjury, the agency will make no distinction and you will then have created a tax obligation for yourself when you had none before you made the report. Read section 61 again, it’s quoted in the ruling and take some time to read Publication 544, You’ll note that the IRS is correct and there is nothing new.

Quoting from page 3, right column:

Amount realized. The amount you realize from a sale or exchange is the total of all the money you receive plus the fair market value (defined below) of all property or services you receive. The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject, such as real estate taxes or a mortgage.

And since the entire 40 page publication is hypothetical, let’s talk hypothetically here for a moment. Let’s say I exchange some Bitcoin for Litecoin, what is my gain? This can never be calculated because I don’t have any data on my initial price. My Bitcoin purchase of course was not taxable, and buying Litecoin is then not taxable for the same reason, I have nothing by which to compare it. What was the price of the Litecoin I bought? It was so many Bitcoin. Give that some thought. You accountant will tell you it was so many dollars and some dude in France will tell you it was so many Euros (or Francs, whatever they are using these days). The “amount” is what you claim and in what currency you claim it. If you claim it in USD, then it is taxable, or at least reportable.

My main point is this, what if I paid 1 Bitcoin for so many Litecoins and when I exchange my Litecoins for Bitcoin, I receive 1.1 Bitcoins. Whoa! I just “realized a gain”, going by the commonly accepted rhetoric, of 0.1 Bitcoins. Let’s say I report that gain to the IRS and it becomes taxable. How do I pay the tax? Do I find some dollars from somewhere else and pay the amount of dollars that would be assessed in taxes? That’s what most people are doing. But am I required by any law to go get some dollars for that specific purpose? No.

Well then, should I pay the tax in Bitcoin? Let’s say I owe 23% of 0.1 Bitcoins, that would be .023 Bitcoins. Where do I send it? Will the IRS penalize me for making a frivolous return by paying the tax? Yes, most likely. Again, if you cannot pay the tax in Bitcoin, Bitcoin is not taxable.

What is the fair market value (FMV) of 1 USD? It’s 1 USD right?

What is the fair market value of 1 Bitcoin? It’s 1 Bitcoin right?

Let’s see if we can find agreement with the definition of fair market value in the IRS’s Publication 544 to this example.

Fair market value. Fair market value (FMV) is the price at which the property would change hands between a buyer and a seller when both have reasonable knowledge of all the necessary facts and neither is being forced to buy or sell. If parties with adverse interests place a value on property in an arm’s-length transaction, that is strong evidence of fair mar-ket value. If there is a stated price for services, this price is treated as the fair market value un-less there is evidence to the contrary.

How much would you pay for 1 Bitcoin? I would pay 1 Bitcoin, but today, I would also pay 159.88 Litecoins as of the writing of this article. By agency standards, the fair market value of any coin is at least the same value of that coin, even though people would trade you land or securities, the fair market value of any one coin is reasonably one of the same coin.

You should be aware that there are no new laws regarding crypto-graphic currencies or any related transactions. Since the IRS defined the currency as property in 2014, this definition adopts all case law and statutes that pertain to taxing property. In other words, when you think Bitcoin, think gold. If you don’t pay taxes on gold until you sell it or dispose of it for USD, why would you pay taxes on other property?

Because crypto-graphic currency is not taxable, and to change existing laws would be too risky and possibly cause people to wake up and start thinking about this instead of cowering in fear, it appears to be much easier to use the media and revenue rulings like this to change public policy. That way, people will just pay taxes on their cryptos just because everyone else is doing it. Just like everyone is using a social security number for everything even though there is no law requiring one.

Why is the revenue ruling process being used in place of real legislative changes? Maybe because people don’t understand how this works, but can easily be fooled because they are already afraid. Here are the Internal Revenue Manual (IRM) provisions for issuing or obtaining a letter ruling.

But let’s poke some fun at the language in the ruling itself:

First, quoting, “An airdrop is a means of distributing units of a cryptocurrency to the distributed ledger addresses of multiple taxpayers.”

This is patently false in that this is not the industry definition of “airdrop” and makes wild assumptions. What do “taxpayers” have to do with ledger addresses? The statement assumes too much. When has any crypto-currency been designed for taxpayers? It should read, “An airdrop is a means of distributing units of a cryptocurrency to the distributed ledger addresses of multiple addresses.” Or, let’s use a definition from the industry itself, “An airdrop is a distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses.” Either way, whoever owns an address is another matter entirely and it really assumes too much to believe that only U.S. Citizens are the address owners here.

Here are a couple more issues, first, receiving the ability to sell property is not taxable, by the IRS’s own rules and definitions, using gold or stock or real estate as an example. Cryptos are property, there are no new laws on this matter. Receiving the ability to sell property is not taxable because I’m not required, at any time, to sell for USD (which are taxable).

Second, how is ownership established and how is the “individual” identified. For example, someone using a paper wallet (or Exodus). In your own household for example, let’s say your friend sends you coins to your Exodus Wallet. Who has access to this wallet? Your wife? You? Your oldest son? Your brother who visits on weekends to talk cryptos? How is ownership ever established, by your I.P. address and whoever the account holder is with your ISP provider? Again, the sole purpose of this letter ruling is the same as all the other media on the subject, to trick people into believing that they need to determine the fair market value of the coins upon receiving them, then keep track of how they are used and then report on themselves at the end of the year, as if they sold their coins for USD in every example.

Quoting, “Section 61(a)(3) provides that, except as otherwise provided by law, gross income means all income from whatever source derived, including gains from dealings in property.”

In receiving Bitcoins for example, where is the gain? Where is the income? Is it in the right to sell? Can I buy groceries with the Bitcoin or can I pay federal income taxes in Bitcoin? If one has the right to sell, then he has the right to sell for anything, not just USD. So what is being taxed here, USD or cryptos or the exercise of one’s intangible property rights? Is there any tax liability at all? I don’t see it and not because I might be ignorant, I don’t see it under any rules or authorities cited by the IRS anywhere, including this letter ruling.

Let’s poke a little more. Quoting, “In general, income is ordinary unless it is gain from the sale or exchange of a capital asset or a special rule applies. See, e.g., §§ 1222, 1231, 1234A.” Is the “sale of a capital asset” similar or the same is the disposition of an asset? Where is the sale in receiving a transfer of Bitcoins? This is how the U.S. Supreme Court explains the meaning and limitations of the definition of “capital asset”, “it is evident that not everything which can be called property in the ordinary sense and which is outside the statutory exclusions qualifies as a capital asset. This Court has long held that the term ‘capital asset’ is to be construed narrowly in accordance with the purpose of Congress to afford capital-gains treatment only in situations typically involving the realization of appreciation in value accrued over a substantial period of time“, Commissioner v. Gillette Motor Transport, Inc., 364 U.S. 130 (1960). The moment I receive it, there is a tax owed? How do you calculate a rate over time when the time value is 0?

Let’s review FAQ 36

Q36. I own multiple units of one kind of virtual currency, some of which were acquired at different times and have different basis amounts. If I sell, exchange, or otherwise dispose of some units of that virtual currency, can I choose which units are deemed sold, exchanged, or otherwise disposed of?

A36. Yes. You may choose which units of virtual currency are deemed to be sold, exchanged, or otherwise disposed of if you can specifically identify which unit or units of virtual currency are involved in the transaction and substantiate your basis in those units.

This says it all. You are choosing your own tax treatment, but look at all the complex record-keeping and look at how many infinite possibilities there are for anyone involved in cryptos to be audited and assessed taxes for under-reporting. I didn’t even consider costs of attending an audit and tax court. This is a quagmire and if you continue managing your financial affairs like you always have been, while using this new technology, it will be very expensive. There is no reason to be financially eviscerated in cryptos, use the technology properly, managing your money so that you don’t receive any gains and re-allocate at the right time into your new investment portfolio.

I really don’t think we need anymore rulings or news articles or interpretations from anyone, including the IRS, before we can conclude that, once again, cryptos are not taxable until you sell them for a taxable currency (e.g. USD).

And while we’re on this subject, let’s get the heart of the matter. The statutes and “tax treatment” policies are not relevant when it comes to private property. Let’s call it what it is, crypto-graphic assets, when used by most people, are intangible private property and the rights to use these assets are solely the intangible and private property rights of the people exercising those rights. No statute that has ever been written, and no statute that will ever be written can change this.

The recent Wyoming legislation is a great example. I’ve spoken with many people this year who had the erroneous idea that Wyoming was friendly to the use of Crypto-graphic assets. The state of Wyoming (a private membership association) did not grant property rights for the use of crypto-graphic currency. Just like no state can grant a human being the right to be born or to live, no more than it can grant a tree the right to grow or grant the Earth a rotational period of 24 hours.

Even so, the recent Litecoin conference reveals that Wyoming has or is adopting a very favorable set of rules and guidance for the court system that will uniquely protect property rights for crypto-graphic currency holders. You will want to review this, The most impressive deals with establishing clear title, avoiding licensing and money transmitter requirements (competing with New York and Wall Street that is) and bailments. The state tax is nice, but it doesn’t change anything with the federal laws. My point here is that you have to decide how to manage the asset to reduce or eliminate any possible federal taxes, but for state regulatory issues, Wyoming looks very promising.

The rights that the state has claimed to have been granted already existed. Instead, what the state did was impose a lien upon (take) the rights that people already had to have, own, use or exchange their intangible private property, by classifying these rights as “intangible personal property”. Nothing has changed however, because no association, or even government, can take private property where there is no compelling or public interest. Call it what you want, write pages with words on them, publish those pages, it does not alter in any way the private property rights that people have had since recorded history. These rights are protected under the Law of Nations and cannot be taken by any private membership association such as the state of Wyoming (or any other “state”). The state legislative enactment is irrelevant, unless you lack the understanding to know the difference. Likewise, association (IRS) letter rulings are irrelevant unless you waive your rights.

Just the same, we all know that theft is illegal or unlawful. But the law prohibiting and penalizing theft does not prevent theft. The property owner must take measures to protect his own property and property rights. He must place locks on his doors, secure his passwords, have deliberate habits, store his valuables, carry weapons and encrypt not only his communications, but access to his money (i.e. crypto-graphic assets).

This is precisely the reason why crypto-graphic currency is not taxable, because it is not a creature of the state. It’s the result of people working independently of any government, independently of any government official purpose, and simply trading with each other, or improving their means of trade. In nearly every instance, the state, and I’m including any state or private association, has zero compelling interest and therefore no rights to impose a lien upon or tax the use or possession of crypto-graphic assets. However, if you can be fooled into placing a dollar value on the use of your crypto-graphic assets and then declaring that to the agency, especially under penalties of perjury, then you will have waived your rights.

Money is fire. I’ve seen it kill people and I’ve seen it bring society into the modern era. Make no mistake, crypto-graphic currency and related assets are like fire. We just discovered it, and we can use it to burn down our houses, or, we can use it to cook our food, stay warm and protect what is important to us.


The IRS is now sending letters to try and scare and trick people into responding or reporting cryptos when they are not reportable. It’s a form letter, Form 6174 titled “Reporting Virtual Currency Transactions”. This is nothing but a sales letter.

It begins with, “We have information that you have or had one or more accounts containing virtual currency…”. This is a lie; if the IRS received such information you would have received a 1099, a copy of the one reported to the IRS.

It goes on to say “… if you believe you didn’t accurately report your virtual currency … you should file amended returns…”

You don’t have to read any further because this letter requires NO response whatsoever and if you want to discuss it with your accountant, he or she will try and scare you into reporting something that is not subject to reporting at all. If you get this letter, ignore it. The only communication that is important is the 1099 form, and we’ve already proven the correct response to the erroneous 1099 reports in the December 2018 article further back in this blog.


In the late nineties I began “re-organizing” assets and income for people and small businesses having both large debt and large windfall situations. Referring to myself as “I”, is just for convenience, and many of you know my organization as Singleton Press, PMA (a private membership association). These strategies were part of various solutions that allowed people to protect what they had and prevent future losses from unfair collections while they were able to scale up the income of their businesses and investments. I’ve been organizing structures inside the United States (including what we believe to be the fifty states) in a way that legally avoids not only tax consequences, but attachments resulting from tax and judgment lien levies against income, real estate and cash in the bank. The many versions of these structures I’ve referred to as “Bullet Proof Banking”, all registered within the United States. In spite of new laws and banking policies that act as if we are involved in money laundering or some kind of trafficking, when in fact it is the banking system that is involved in these very crimes, these strategies are absolutely sufficient to accomplish the objectives intended for the benefit of each of our members. These strategies have withstood all of the new statutes, including even the Patriot Act and the National Defense Authorization Act and even the new banking policies that we now know as “Know Your Customer (KYC)” and “Anti-Money Laundering (AML) or The Bullet Proof Banking strategies continue to protect people against these draconian policies and statutes; however, if you want to get into securities, developing land, business credit, trades, professions, brick & mortar businesses and raising capital, it becomes a little arduous.

Many of our resources have been shared with members so that they could begin or develop a business or new source of income. Some of our members just needed to supplement a pension because their investments were raided by the IRS, and some of our members simply wanted to start a new venture or expand into new market niches. Over the years we’ve developed business plans, resources and shared suppliers and some trade secrets, when not restricted, for the purpose of helping people and small businesses succeed.

My purpose in writing this article is to show you how to become a national and change your own political affiliation so that you can have real access to your money and the assets that enrich your lives and allow you to advance technology for the benefit of people and of course, profit.

If you reside in the United Kingdom, Canada, Australia, New Zealand, India or Belgium, we can use the PMA along with the limited partnership or a limited liability company to get the same or very similar results as we have in the states.

I want to introduce each of you, and new members, to a very real opportunity to further support what we’ve accomplished over the years, and to enable those of you who wish to gain the most from possibly tens or even hundreds of millions of dollars realized from investing in crypto-graphic currency. You will want to manage your new assets completely beyond the purview of state and federal taxation and regulatory impediments, including the securities statutes and unjust financial crimes presumptions. The most certain way to do this is to change your affiliation and national status and the following article is the real deal.

A Brief History

Over the last twenty years I’ve been observing the re-establishment of a nation (our nation). I did not realize until recently that I had been witnessing the emergence of a nation that had been marginalized since the thirteen American colonies became states. The United States of America was created under The Articles of Confederation in 1781, with the final adoption by the State of Maryland on March 1, 1781.

I remember in school, and I attended public school in the seventies and eighties, the false history that the U.S. Constitution was amended and replaced the Articles of Confederation for a stronger central government. This of course was a lie since a quorum to amend the Articles was never reached. Instead, people who were not in public office at the time, formed a franchise of the East India Trading Company, giving it the name “United States”, its charter being the U.S. Constitution. This company (not country) adopted the standard trademark of the East India Trading Company, a symbol we have come to know as the American flag, the “red, white and blue”.

This fact seems so outrageous that most people will not believe it, but the research will establish, without question, that the United States is nothing but a corporation, by its own admission in case law, historical documents and its by-laws (the United States Code). The United States is not a government, it’s nothing more than a collection of thousands of private membership associations (PMAs). This includes the so-called courts, sheriff, police, “government” agencies, departments, and every city, town and county is its own private company, privately held by private interests. The voting system is a sham, none of the so-called elected office holders are ever elected by the voters, they are appointed by the same people in those private membership associations.

If we dare speak of these facts openly, those running this racket may label us a “sovereign citizen”, another word for “domestic terrorist”, and thereby a possible death sentence at any routine traffic stop. Labeling someone a “sovereign citizen” is nothing but a death threat and at least one human rights violation (e.g. forced affiliation).

In addition to this, these very cities have been captured by other private organizations that are now perpetuating the ideas of “sustainable” or “strong” or “resilient” cities. This is code for a communist dictatorship under a foreign monarch, known as the Pope. And because people don’t usually think critically these days and lack the ability or willingness to research anything for themselves, they will not understand what is intended here. We can see some of the results of these plans by observing that we are under total and perpetual surveillance and under the attack of military weapons systems, including but not limited to microwave towers, Wi-Fi routers everywhere and SMART meters.

Why has this happened you may ask? It’s nothing new, you can see this has been happening for over a thousand years, it’s described in Book I of the Law of Nations. The secret societies were in a position to monopolize our government for their own commercial gains, namely, it was the Free Masons, operating through the Vatican (Pope), The King of The Netherlands and The Equestrian Order of the Holy Sepulchre of Jerusalem and the university system in the United States, the most prominent ones being Georgetown and George Washington Universities. Georgetown University, the trade name of Georgetown College, is literally the seat of government for the District of Columbia.

The Declaration of Independence and the U.S. Constitution do not involve people living today. These documents are not the source of peoples’ rights or protecting the rights of any people. This entire system is operating under the Law of Nations and most of what is taking place is in violation of the Law of Nations and in violation of the Universal Declaration of Human Rights. Please search these two terms on the Internet with the term “PDF” to obtain free copies and begin reading for yourself. Is it any wonder that we were never introduced to these bodies of law? It’s time we begin to learn.

Identifying the Problem

You’re going to have to give yourself some more time to discover the supporting facts of this saga, it’s too much information to get into for this short article, and I only wanted to introduce you to a solution to many of the problems you are experiencing. Let’s consider some of the major ones

1) human trafficking and trafficking of persons

2) compulsory public schools intruding into our families (surveillance, vaccinations)

3) family courts and government agencies intruding into our families,

4) having to take on long-term debt just to get the basic needs for living,

5) being tricked into taking on long term debt for a fake education,

6) state and federal taxes and regulations,

7) everyone is a suspect in money laundering and domestic terrorism

8) perpetual and intrusive surveillance

9) being taxed by foreign agents (“judges”) for the exercise of intangible property rights

10) being excluded from society because of your credit rating

The list is quite lengthy but these are the most important items that can be eliminated by correcting your legal status. I’m going to explain what is meant by this term.

Since you were assigned a social security number and since you assigned your children a social security number, each of you have been trafficked out of your home state, one of the States of the Union (The United States of America), and thereby denied any national status. You have never signed a social compact and joined a political party (today’s so-called political parties are nothing but “527” organizations under 26 U.S.C. §527, not political parties). True political parties are not registered with any government agency. The Democrats and Republicans are not political parties, they are tax exempt organizations.

Your “person” has been trafficked out of the state in which you were born and into the United States as the property or surety of the debts for one or more internal revenue trusts situated in the U.S. Virgin Islands, Common Wealth of Puerto Rico, Guam, or the American Samoa or some other federal territory. This made you a resident alien and an enemy of the state in which you live. Since then you have been living as an enemy of the state and described as such under The Trading With the Enemy Act as amended on March 6th 1933 by Franklin Delano Roosevelt (see Title 5 U.S.C. §552(a) “Government Reorganization Plan)

This is why your children can be taken, why your votes don’t count, why you are censored and under surveillance and the reason why you are being taxed and regulated out of existence. This structure has prevented good people from consolidating capital that was intended for the benefit of people, such as to advance certain technologies. Whenever the banking system sees that someone is consolidating capital, the money and property is seized and the Securities and Exchange Commission, or the IRS or Financial Crimes Network (FINCEN) gets involved. The victims naively ask attorneys for help and the attorneys, who are working for this system and against people, take the matter into bankruptcy court and the property is then stolen by the very people who are preventing the consolidation of capital. It’s not only about taking your money, it’s about preventing you from having money or resources, at whatever cost is needed.


Are you really tired of this system? Here’s why you are being abused, because you don’t have a nation, you are a citizen of a corporation, you have no country, no political affiliation. The remedy is to change your affiliation and become a national, specifically, an American National, join your State Assembly, take a real oath and sign a compact with people in your nation. Once you’ve done these basic things, you will have removed yourself from the U.S. system of taxation, regulation, abuse and exploitation.

The first step is to declare your residency. First, using your home address, you obtain the latitude and longitude for your home address at and then convert these coordinates into the natural area code (NAC) using The NAC coordinates will look like a series of capital letters and numbers. The postal system will deliver mail to this address, even though you may encounter some resistance or interference, all existing postal systems use the same software which does include the NAC database. This has been adopted by the Universal Postal Union around the world. Send yourself some post cards with this address until you begin receiving them on a regular basis. This will be the first step to getting you out of the U.S. jurisdiction. Before you begin, please have patience, realize this takes time, and be sure to watch and take notes from the 103rd Broadcast of the T-ROH Show.

Once you have this information, visit the website for The United States of America at The first thing you’ll want to do is the declaration of residency from the link on the main site:


Use the name that appears on your birth certificate, and it will result in your legal name being published, and your trafficked person will be returned to the state. The bonds will then collapse, and you’ll want to order the service to take the oaths and that is a 90-120 day process of collecting records. Once that is done, you can take the oaths and then you can get your passport and give up your state driver license and vehicle registration in exchange for the only real identifying records that will not be used to traffic your person or tax you or hold you as a surety. You will then be able to register your car in The United States of America (States of the Union) and export your land (home) into the States of the Union.

You will also want to join the American National Union once you register the existence of your name as a business, such as a limited liability company or a private membership association (PMA). This is the main website, and there are unions for every trade and profession. Join the discussions and please take time to learn more about the PMA at As a quick example, your family is a private membership association and no government or police power has any authority to intrude into your PMA unless it is engaged in acts considered to be substantively evil. Knowledge of this one item alone would be enough to stop most of the family court abuses.

Mothers and fathers don’t realize that the term “neglect” is being used in these family court proceedings without any set of facts, nor any set of facts established with evidence of any kind. Moreover, the set of facts that is not disclosed, involves the presumption that you are involved in money laundering. Yes, family court accusations of “neglect” involve the judges taking silent judicial notice of the mother and father being involve in money laundering. This is why no matter what your argue, it will have no effect on whatever the court want to do with your children, and your attorney is helping the court and the state. You will discover how this is done as you begin to learn more about what I’m explaining in this article.

You’ll want to begin learning about the Bank of North America and the Continental Dollar (UCD) and the Continental Public Bank at This bank is approximately 240 years old and its currency is pegged to silver bullion in a 1 to 1 ratio, that is, 1 UCD : 1 oz. Ag bullion.

The pension program of The United States of America can also replace your U.S. based social security pension, you will have to research to learn more about this. Once an American National, you can join its military and run for public office, a real public office where the voters’ votes really do result in a real office holder being elected to serve the people.

You should also know that the United States exists in grid system of approximately 500 rectangular regions, not the fifty states we were told in school. This is a survey or map of your current residency.

On the other hand, The United States of America includes all of the 50 states with which we are so familiar.

Becoming an American National is not intended to solve your tax or court problems. If you decide to become an American National, you will want to do it for the purpose of changing your affiliations and enjoying the benefits of being part of a nation, and not for the purpose of solving problems related to a debt collection or court process.

Having the American National status will end your own human trafficking and the trafficking of your person and free up your access to money and the enjoyment of property. It will remove your person from the purview of the United States and all of its agencies, such as the Securities and Exchange Commission, IRS, state agencies, etc. You will have new obligations, but they will be fair and lead to your prosperity.

You will certainly want to re-mediate yourself to compensate for all of the propaganda you’ve been surrounded with for an entire life-time. Please watch/listen to The T-ROH Show by searching the channel “The Government of The United States of America” and the phrase “The nth Broadast of The T-ROH Show” and replace “nth” with “first”, “second”, “third”, “fourth”, etcetera. There are over two years of weekly T-ROH shows and you will want to hear all of them, from the first to the last.


Imagine organizing your investment company or business outside of the United States, and within The United States of America. Once you become an American National sign the social compact, take your oath and join your State Assembly, you may conduct your business and lawfully managing your investments in The United States of America and outside the United States while avoiding all of its unjust taxes and regulations. This fact alone may be a decision maker for many of you, but as you learn more about this, you will discover many more reasons to change (or correct/restore) your affiliation.


Many of us are anticipating substantial windfalls on this next crypto-rally near August and September, and we have a need to take short term profits, but not with $20,000. Many of us need a way to manage $10,000,000 or more. It’s easy enough to go into a stable coin, but the adage of never put all your eggs in one basket is foretelling. I’ve described a few options here, many of which I’ve used over the years for different reasons, basically to move large amounts of money and valuables between jurisdictions.

However, if you want to source hundreds of thousands of Bitcoins, or the equivalent, in currency, precious metals or even loose diamonds, or move from your large currency position into another other asset, and move money across different jurisdictions, I do have a turn-key solution and it’s time tested, insured by the world’s largest re-insurers, including tier 1 escrow, allocated vaults, multi-currency accounts and insurance for your crypto-currency holdings. Simply send an email to [email protected] and in the subject line include the phrase “special treatment”. Do not include financial information, but maybe a general description of what you need.

How can we temporarily take profits for the short term and get back into our crypto-graphic assets, without pooling all of our windfall into one place while staying liquid enough to get back in quickly? You want to stay liquid but get out of your crypto-assets while the price drops, and then quickly buy back in as the price continues to rise. You want to avoid having your money frozen and being accused of money laundering or something similar.

The biggest risk in these situations is the government and banking institutions. There has always been a hidden motive to prevent people like us, who are not “in the club” with the elite, from consolidating substantial capital. Now with the onerous anti-money laundering and terrorist laws and policies, it’s just easy enough for any bank to seize your money and impose conditions on you to prove its origin before gaining access again. The banks and regulators actually have a profit motive for this. How then do we stay liquid while avoiding falling crypto prices and keeping our short-term profits, so we can get back into the assets as the prices begin to rise again?

The criteria include moving into a stable coin, one or more, with a secured exchange, application or other device. The strategy may also include getting into cash, preferably away from any financial institution, but you should be okay using a financial institution as I’ll explain. And moving your crypto value into precious metals, most practically in vault services that deal in crypto-currency themselves. We have several options. Keep in mind that you want to move from cryptos into something that is liquid, and that is not manipulated anywhere near a 1:1 ratio as your crypto-coins may be, it’s a tricky process to navigate.

The “Stable Coin”

There are several strategies, most involve using a reliable stable coin, a crypto-currency pegged to fiat. The top three are mentioned here, but keep in mind, the strategy is to avoid volatility while retaining liquidity. This can be done with cash, precious metals, commodities and stable coins.

Stable coins are one way to take profits without going into your fiat currency, and stay liquid for the purpose of buying back into cryptos when there are substantial price drops. This also allows you to avoid any financial institution. Here are the three most reliable stable coins in the crypto world.

TrueUSD (TUSD) is likely the most reliable “stable coin”. TrueUSD provides its token holders regular attestations of escrowed balances, full collateral, and also the legal protection against misappropriating underlying USD. It is regulated and independent of the exchange marketplace while backed (exchangeable) 1 to 1 with U.S. Dollars issued by trust token. Unlike USDT, TrueUSD ( does not hide anything from users. It’s bank account holding proofs is published each month. All funds equivalent to TUSD are stored in professional trust firms’ banks. In addition, TrueUSD never touches those funds. Another good thing is that users can directly exchange TUSD with USD without even using any exchange. It only requires your typical “Know Your Customer / Anti-Money Laundering” disclosures.

The purchase and redemption process is completely handled by TrustToken Smart Contract, in case you are not using any exchange service. Many people believe that TUSD is far better than Tether in terms of safety and legal protection. You can decide for yourself, but these are the recommended exchanges for TrueUSD: Bittrex, Binance, Huobi, Okex, Kucoin and Cryptopia.

The second recommendation for a stable coin is the GEMINI Dollar. “GUSD” as it’s abbreviated, is another trusted stable coin issued by Gemini Trust Company, LLC, a New York trust company. Gemini Dollars, equivalent to U.S. Dollars are at State Street Bank and Trust Company. Proof of funds in banks account are examined by BPM, LLP, a registered public accounting firm, in order to verify the 1:1 peg. GUSD is the safest coin as it comes under U.S. regulators. I don’t trust any regulators, but at least we have a good idea of the organizations and people with whom we are dealing. These are the preferred (most popular) exchanges: Okex, Okcoin, DigiFinex, and BitForex

A third stable coin that is recommended includes USDC. It is a regulated stable coin backed by the U.S. dollar. All USDC are issued by Circle Internet Financial Limited. The USDC equivalent U.S. dollar is deposited with its accredited bank partners account after that it issues the tokens for circulation. This is an ERC-20 token, and the token can be stored on a trust wallet, Ledger, BitFi or other hardware wallet. Recommended exchanges include: Poloneix, OKEX, DigiFinex, CoinEX, and Kucoin.

There are more stable coins available in the market but those are not very popular and listed in only a few exchanges that are not trusted as well as having very low volume. Currently, USDT is the only stable coin which listed in almost all crypto-currency exchanges in the world. But, due to the recent crash of USDT, it’s not as trust worthy as the three I’ve mentioned.

Precious Metal Vaults

Moving between any money and precious metals does not always give you the liquidity you might require, except that some very reliable vault services and exchanges implement the use of cryptos with the vault storage of precious metals. You need to be able to buy and sell with at least one reliable crypto-coin, and have your holdings stored in a vault that can be sold any time via your crypto-coin.

Use Uphold to store your cash in 23 different currencies, any of four precious metals (gold, silver, palladium and platinum) and two of the stable coins. You can link your wallet to your bank account or debit card. This service includes instant conversion and seamless exchange between major digital and fiat currencies. Transact with any wallet on seven crypto networks.

The most important aspect of buying precious metals to get out of crypto-currencies, is that the metals must be stored in the custody of the exchange in order to have the liquidity needed, and you should be able to exchange back into your crypto-currency just as easily.

Keep both cash and bullion on your account! This enables you to trade in and out of positions at your convenience.

As a BullionStar account holder, you are able to keep funds on your BullionStar account in Singapore Dollars, US Dollars and Euros. Funds on your BullionStar account can be used towards purchases of bullion or be withdrawn anytime.

Bitcoin holders who are thinking of diversifying or taking some profits on their Bitcoin positions may be interested to know that in addition to transacting in US Dollars, Singapore Dollars, and Euros, BullionStar also accepts Bitcoin as a payment option for its precious metals products, and has done so since May 2014.

Using the BullionStar website, customers can quickly and efficiently purchase gold bars and gold coins, as well as silver bars and silver coins using Bitcoin. Customers can also sell gold and sell silver to BullionStar and receive settlement proceeds in Bitcoin.

The maximum transaction size for a purchase order using Bitcoin is currently set by BullionStar at BTC 200 per transaction. There is no minimum transaction size for a purchase order using Bitcoin. For sell orders that settle in Bitcoin, the standard maximum transaction size is currently 30 BTC per transaction, but this can be higher upon discussion with BullionStar.

Vaultoro (

Vaultoro is another platform for purchasing Gold with Bitcoin (and vice-versa) effectively and within seconds. The beauty of the Vaultoro platform is that it gives investors the power to instantly exchange between two of the world’s most popular Alternative Assets, which can protect you against inflation and volatility. Watch these introductory videos about using Vaultoro,

Cash / Currency

While you can store cash (fiat) at BullionStar and Uphold, Caleb & Brown in Australia has additional solutions.

Caleb & Brown

This Australian firm provides the best of both worlds. This is not a banking institution but it can store your cash and crypto-graphic currency and it does provide services much like a brokerage firm. I like this very much, especially for U.S. Citizens, because there is no reporting obligation for Caleb & Brown nor for U.S. Citizens on Form 5471 for the reason that clients are not account holders at any financial institution and have no interest in any foreign corporation, and there is no duty to report on their investment activities. It leaves all reporting, if there is to be any, in the hands of the client. You can establish a personal or business (e.g. LLC) account with Caleb & Brown, and it’s not a bank account, and it’s not ownership in any foreign corporation, nor are you a signer on a foreign account.

In my opinion, the best way to get involved with Caleb & Brown is to join Crypto Jay’s Trade Calls. He is an institutional trader, his website is at and you can receive daily charting and get the best forecasting you can find. You may also want to get in on special announcements about imminent trends in crypto pricing at ( The patreons get to know which trades that Crypto Jay gets into and out of, what his target are, and the reasons. A typical exit usually produces 1,500 to 2,000% return because these are trades lasting six months to a year.

You can take profits and move them into cash, or you can transfer from one wallet address to another, or you can use qualified escrow to move the value of your crypto-currency into other assets anywhere around the world. There is no need to wire transfer funds to other countries. The key feature in these services is that you can move from your crypto coins into another asset such as precious metals without first converting to cash and without using the bank wire system.

While you might wire money to open your account at Caleb & Brown, or simply transfer from one wallet to a wallet in its custody (Caleb & Brown), you will not need to wire transfer profits in cash anywhere. You can simply move from your wallet at Caleb & Brown to another wallet, for example, at an exchange in your country, and then sell for local cash. If you’re in the states, simply move from your Bitcoin wallet “in Australia” to your Bitcoin wallet access in your exchange account in the states, and then sell for cash. There is no need for a wire transfer. And if you are doing a very large transaction, such as trading your coins for other assets such as real estate, you can use qualified escrow.

Schiffgold (

Peter Schiff has been brought into the crypto-currency sphere kicking and screaming, but we still respect him. He manages a precious metals vault service that can be accessed via crypto-graphic currency, much like BullionStar.


TradersHome (

Here you can choose from currencies, commodities, stocks, derivatives, and more to diversify your portfolio. I don’t believe it provides vault storage services such as for precious metals, but then base metals and other commodities are not typically stored in vaults. You’ll have to gauge your own risk tolerance.


At the right time you take profits with the intention to get out temporarily and back into your crypto holdings within about 90 days, you want to move the value of your cryptos into something that is mostly if not totally out of the banking system, but something that will allow you to get back into your cryptos quickly, including stable coins, cash, precious metals in vaults that are accessible via Bitcoin. I would like to see more ways to exchange my cryptos for base metals, such as copper, in the same way there is for precious metals. Traders Home may be one of the services I have found, but I’m still looking for more.

Consider these criteria:

1) A stable coin that is reliable and not manipulated in same pattern as exchanged coin.
2) Cash or currency outside of the banking system, such as in a vault.

3) Must be able to buy and sell using crypto-coins, or at least cash and currency

4) Avoid wire transfers of currency

My research shows that all of these solutions may require “know your customer” and anti-money laundering disclosures from signers of account holders, they also allow account holders to be businesses such as limited liability companies and limited partnerships. In some isolated cases, you may not need to use a company as an account holder, but most of the time it will be to your advantage, not just for tax purposes and estate planning, but for managing other types of risk normally associated with large amounts of money.

If you need “special treatment”, send an email with this phrase in the subject line to [email protected].

My last recommendation is to avoid acting with fear, instead, simply be pragmatic.


Listen to my latest conference call on this subject:

December 20th 2018

Receiving a 1099-K and How to Avoid the Taxes

Did you know that transactions between crypto-currencies are not re-portable by the exchanges in which they are held.  The 1099-K is deliberately erroneous so that people will mistakenly include the information on their Form 1040 and then be subject to paying taxes on property that was not subject to the tax.  It’s not because of a law, it’s because of how people are mistakenly reporting information on their 1040 that creates the tax situation. The Secretary of the Treasury confirms that trading between crypto-coins is not taxable.

There is no income tax between crypo-graphic currency exchanges; however,the IRS is mis-applying the “backup withholding” provisions under 26 U.S.C. §3406 to force the exchanges to sell 31% of the dollar value of your crypto holdings and pay it to the IRS unless you request a determination letter and file a current W-9 Certification. This is specific to personal accounts at the exchanges, not business accounts such as LLCs that do not file returns.

Why do you request a determination letter? Because backup withholding applies only to “re-portable payments”. Re-portable payments are only payments of interest or dividends in U.S. Dollars. Trading between crypto-currencies has nothing to do with receiving payments from interest or dividends. The IRS is doing this to escape the normal tax assessment procedures that would allow people to scrutinize what is being done and you will not find any accountant or attorney who understands this well enough to correct it.

How do you request a determination letter? You must request a determination from the Secretary and it must be in a particular format as described in the most recent IRS Revenue Procedures Manual. I’m not trying to be cryptic here, but the language of the request is fairly technical and specific to 26 U.S.C. §3406 and 26 C.F.R. §31.3406(a)-1. I’ve used this process for nearly 20 years and it is very effective.

This works whether or not you are using the limited liability company and Blockchain Tax Immunity Trust or not. Everyone who is filing a 1040 and receives a 1099-K reported in his or her name and his or her social security number or EIN can use this process to eliminate any taxes resulting from the amounts reported on the 1099-K. One request will need to be made with regard to each 1099-K.

This needs to be corrected immediately, do not try to use the falling prices of crypto-currencies to claim losses with the IRS because you will be on the hook for taxes as the currencies increase in price against the dollar. Don’t play this game, correct it now or it could cost you tens if not hundreds of thousands of dollars.

When people begin receiving 1099-K forms from their crypto-exchange accounts, for crypto trades that did not involve selling cryptos for dollars, all hell is going to break lose. They will probably, and mistakenly, report the information on their tax returns because they don’t know any better, or ask a CPA or attorney for advice, who will mistakenly tell them to report the amounts on their tax returns. This report pertains only to people who have personal accounts on the crypto-exchanges, and does not apply to tax deferred limited liability companies and those using the Blockchain Tax Immunity Trust.

There is no tax liability for trading crypto-currencies for other crypto-currencies; however, if you can be tricked into reporting what you believe to be taxable income on your tax return, then it becomes taxable.

If you want to keep your money, and legally avoid the taxes, you must EXclude the 1099-K information from your tax return and send the exchange an updated Form W-9 certifying the correctness of your social security number and that you are not subject to backup withholding for the most recent tax period. Additionally, you must request a determination letter from the Secretary regarding the issue of backup withholding. This is where almost no tax professional will understand what to do, including attorneys.

You must have filed your tax return for the same period, and filed a current Form W-9 with the exchange, retaining a copy for yourself and have kept a copy of the Form 1099-K from each exchange. These documents must be sent to the Secretary of the Treasury, to each of three mailing addresses, via certified mail, along with a properly written request for determination letter. You cannot simply send a letter to the IRS or to the exchange claiming that the Form 1099-K is incorrect, this will be ignored. You must use the proper administrative procedure, as published by the IRS, and request a determination as to backup withholding. This will allow you to exclude the Form 1099-K data from your tax return, minus the amounts of cash you took in your own name.

Please follow this blog for updates and information. You should expect a Form 1099-K from each exchange before January 31, 2019; and in response, you will need to prepare and send one request for determination letter for each.

The following is the legal analysis for the reason why no taxes are owed, but I must caution you that simply using this analysis in some kind of protest letter will do nothing, it must be part of a six-page request for determination letter as instructed within the Internal Revenue Bulletin.

STATEMENT OF LAW: The law is certain and unambiguous. Please be advised that 26 C.F.R. §1.1471-1through 7 is defined as:  “Reportable payment” to mean,“The term reportable payment means a payment of interest or dividends (as defined in section 3406(b)(2)) and other reportable payments (as defined in section 3406(b)(3)).”

ANALYSIS: The 1099-K incorrectly reports dollar amounts that were not remitted or distributed to the payee as stated on the form. The payor has retained ownership of the underlying property (amounts erroneously reported as payments in dollars on Form 1099-K) and never dispersed any payments to the payee, other than those reported on the payee’s filed tax form or statement (i.e. Form 1040). The “taxpayer”herein was not the “payee” of any interest, dividends or other re-portable amounts identified under 26 U.S.C. §3406(b)(3). Additionally, the dollar amounts erroneously stated on the disputed Form 1099-K do not represent dollars paid to the payee (settled transactions) and do not identify any amounts of interest or dividends paid to the payee and therefore, are not subject to backup withholding.

Specifically,“other re-portable payments” as they relate to this transaction,are identified in 26 C.F.R. §31.3406(b)(3)-5(a)“Payment card and third party network transactions subject to backup withholding.”

26 U.S. Code § 6050W(c) identifies a “reportable payment transaction”to mean “any payment card transaction and any third party network transaction”, and as it pertains to the transaction herein, Form 1099-K, “The term third party network transaction means any transaction which is settled through a third party payment network.”  Assuming for a moment that the reporting party (payor) is a third party payment network, the dollar amounts stated on the pertinent Form 1099-K were never “settled transactions” within the meaning of the regulation and the dollar amounts stated on the Form 1099-K are incorrect. No payments were made to the “payee” as erroneously stated on the disputed Form 1099-K.

CONCLUSION: I am not subject to backup withholding for the period ending December 31,2018.

Crypto-Currencies Are Not Taxable

Imagine for a moment that we had a taxing framework and did impose taxes upon the use and ownership of crypto-graphic currency. As all income tax systems operate, anywhere in the world, the taxpayer is the owner of the thing being taxed. We all understand very well that if we don’t own it, we don’t owe taxes on it. Even sales taxes are imposed upon retailers, not the actual customer. Itemizing the business expense of sales taxes on your receipt is a trick to make it appear as if the customer is paying the sales tax when in fact it is the retailer. The same is true of crypto-graphic currency. The owner of the currency in a central exchange such as Coinbase, is the taxpayer. If you don’t already know how the software for crypto-graphic currency functions, there is a blockchain, a ledger that keeps track of all transactions, a “mining” operation which is software that produces the units of currency or tokens through mathematical calculations, and then we have the actual unit of the currency, the “coins” that are held in wallets, individual databases where this data is stored for use. The individual units of the currency are controlled by keys, or lengthy codes that come in two parts. One part is the public key that allows anyone to see the value of the wallet or key and then the private key which is only known by the owner of the wallet or coin and which is used to “spend” or transfer the currency. The owner of the private key of a crypto-graphic currency is the owner of the currency.

In the case of central exchanges, the exchange is the owner of all of the private keys. Even if some tax was imposed on exchanges between currencies, the taxpayer would be the owner, or the central exchange, not the user such as the account holder, or the exchange customer (people using the exchange). This tells the whole story, and all the misleading news articles just play upon our lack of knowledge.

In the situation where the exchange owns the private keys for your wallet, we have a trust relationship. The customer is the grantor and the exchange is the trustee who owes the private keys back to the grantor on demand. The trust collapses at the point that the currency is transferred away from the exchange and into private keys held by the customer. The way to have this properly recognized, for example in a tax audit, is to declare the existence of the trust within a written declaration of trust.

Lacking this understanding, you’re probably setting yourself up to pay way too much in taxes from crypto exchanges because of all the misleading statements in recent articles published by mainstream periodicals and their attorneys. There has to be a specific taxing statute, and taxable activity and rate in the statute, and then the agency must have promulgated a regulation to implement this specific taxing statute.

Because people don’t understand the law, they report items that are not required to be reported and because the tax return is signed under penalties of perjury, the IRS just accepts that you are telling the truth and what was not taxable before, becomes taxable because it was reported incorrectly. For example, because people don’t read the definitions, nor do tax professionals, they act as though their business is a “trade or business”; however, the statute under Title 26 section 7701 defines “trade or business” as “the performance of the functions of a public office”. If you’re a Congressman, agency employee or federal judge, you’re involved in a taxable trade or business, but if you’re a plumber, you are not.

That is how the system works, and your accountants and attorneys help you make those mistakes. Here is an easy way to understand this one aspect being described in the news lately. It pertains to one word being added to limit the application of “1031 exchanges” to only “real property” and not just any property. If you sold real estate and made a profit, it was taxable unless you bought another similar property within so many days. If you took your taxable profits and bought another “like” property, you qualified for the “1031 exemption”. You went from property to “dollars” back to another like property. There is no such thing as a “crypto-exchange of like cryptos”. Adding the word “real” to the statute did not create a whole new legal framework that now imposes taxes on crypto-currencies of any kind or in any way.

This change simply limits the exemption to “real” property. Property has always been taxable to the extent that a gain is realized by a taxpayer. Here is an example you can ask any tax professional. “Does a taxpayer incur a tax debt when he buys gold, which is property?” “Does a taxpayer have a tax liability if he trades his gold for silver?” Or, “does a taxpayer have a tax liability when he sells his gold for dollars?” What if I exchange my gold bullion for gold coins? It’s the same question, and same answer.

In the cryptographic currency example, going from one crypto to another does not involve first going back into “dollars”, so this is a completely different situation, assuming it’s even taxable in the first place. Stay out of fiat, reinvest, and, even if you would personally have a taxable event, use a tax deferred structure such as an LLC in the states and use its EIN and not your name and SSN and you can defer the fiat tax liability, assuming there will ever be one. It can be deferred forever if you plan it correctly.

Even if there were eventually a taxing statute and regulation imposing a tax in a crypto currency, one or all, how would you pay the tax, in crypto? A taxing statute and its regulation would specifically apply to a taxable activity, and it would specify a rate along with the type, kind or class of tax. There is no such statute or regulation at this time. Even if there were, you could never pay the tax in the crypto-currency. It just isn’t taxable, anymore than words can be taxed, or taxing the use of words, no such thing, and no such tax on cryptos. This tax myth is based upon incorrect premises, read the statutes and regulations. I know that some people have good intentions, but everyone should really do some research first, and don’t just rely on a tax attorney or accountant as those are just agents of the system to get you to buy into the false premises.

True story: In the early nineties, my first debt collection case assigned to me by my partner involved a flower farmer who had spent 35 years building up an incredible seasonal flower farm business. When I got the case, the IRS and bankruptcy trustee were tagging every item in his home, his farm and had taken all of his equipment and vehicles. He only filed bankruptcy because he thought he could deal with the IRS better that way, but it just made it easier for them to take his property. After a few months of collecting facts in the case and corresponding with the IRS and different offices, I discovered that the IRS had been taxing this flower farmer for “manufacturing surface coal mines”. This is actually a crime, so I filed a formal report of my findings to the Federal Bureau of Investigation. It wasn’t 30 days later that my fax machine (remember this was back in the nineties) began spitting out page after page my client was sending, of notices from the IRS, releasing every lien and levy it had and returning all of his property. The IRS vanished and he never had another problem again. That’s when I began to realize what kind of a racket these pirates have been perpetrating. It should make you wonder about cryptos, because I can tell you from additional research I had done following that case, that the IRS is taxing people under Title 27 of the Code of Federal Regulations, for activities involving the manufacture of alcohol, tobacco products and firearms and related industrial activities such as mining.

Don’t be so quick to believe that there is some “new law” or “new rule” just because Forbes published an article with lots of misleading and erroneous conclusions. Adding a word to a statute does not create an entirely new taxing statute, or class of tax. The next thing we’ll probably discover is that the taxing authorities want to tax our brilliant, million-dollar ideas, before we even write them down on paper or make any money with them.