Because a major feature of Bitcoin is: anonymity.
For the 100th time, Bitcoin is not anonymous. Bitcoin is pseudo-anonymous.
While in theory nobody knows if a certain address is yours, everybody can see all the transactions made with that address.
If I use BTC to make a purchase, do I need to pay taxes to the IRS? If BTC is anonymous, how does the IRS know?
Similarly, if I buy cryptocurrency on the cash app and transfer it to my personal wallet, will this be considered a sale of my coins? How will the tax bureau track all this?
Similarly, if I buy cryptocurrency on the cash app and transfer it to my personal wallet, will this be considered a sale of my coins? How will the tax bureau track all this?
If you gave your details for one of the transactions your address is involved into, IRS can link that address (and related transactions) to your person.
Provided that tax is required in the trade of cryptocurrency, do I still need to pay the tax when I'm losing money in the market?
Afaik no, but this depends from country to country and I don't know exactly how it is in US.
