This is what the IRS does very well. Making criminals of innocent people like you.
The Internal Revenue Service has a message it wants to get out to recreational bitcoin investors who think they can dodge taxes on their cryptocurrency gains — it knows what’s going on, and people won’t be able to get away with it for long.
Instead of this, wouldn't a better use of their resources and time better directed to investigating certain multibillion and transnational companies for their tax evasion behavior? But of course, they'd like to target everyday Joes instead, with extremely tough tax codes that are hard to understand for specific circumstances.
It comes across like that they're trying to use some sort of scare tactic here, because they know that the enforce-ability of tracing all transactions over the blockchain, especially for anonymous blockchains, is quite hard. They can only track people effectively really through regulated channels.
Of course, you should lodge your capital gains, and I do believe that given the maturation of the tax code in regards to crypto, this increase in investigations in regards to CGT of crypto income will continue to grow. I'm not saying that people should evade tax. But instead of trying to regulate large corporations more effectively, they may be putting resources in the wrong direction.
