As most of you know, I have been at this business for about two and a half years now. I recently re-enabled the bitcoin processing about a week later the first bitcoin payment came in, cleared fine, order shipped, went to exchange it for USD, Boom! Boy did that trigger some red flags. Two separate accounts of mine gave me 5 days to prove my identity or my accounts would be withheld, accounts that I have been using this entire time. I have to upload my Passport, DL, Business license, proof of address. This is on top of my long standing account that already has my name, address, and bank account numbers. All for a $220 transaction that had already been registered with my tax ID both federal and state previous to taking any money.
I would say there must be a ton of businesses out there avoiding the 35% tax, the 2.6% transaction fee +$0.30, and any currency conversion fees from other countries by using bitcoin. Not only is small business hard but we have to do all the same paperwork as the giant ones.
This to me is a very odd thing. I pay quarterly Fed tax, quarterly state tax, (different quarter for some stupid reason) quarterly Sales tax, so I pay taxes 13 times per year and have been for my entire working life. What would make them think I would try and cheat now, my account is registered in the business name, and has a wonderful standing and credit score.
$220 triggered the most insane document grab I have ever seen, Home loans do not need this much proof. As soon as you turn it back into US currency they want there cut ASAP.
I am not trying to go on a huge rant here but dam. Thankfully all my accounts are super legit, no tax funny business or stretching the truth. I feel an audit coming on…over a $220 sale.