The 2017 tax deadline is almost upon us. Very early results indicate almost no filings reporting crypto currency earnings vs estimates of $25,000,000,000 in taxable earnings.
I want to implore people to properly report their crypto currency earnings and pay the associated taxes. It would be tempting to think the government isn't able to track your trades / mining efforts and thus will not be able to know about any tax evasion. That is a bet I wouldn't take.
The government knows enough to know to look hard for tens of billions of unpaid taxes and they have a reasonable idea of where to look. Cash flows into / out of a crypto securities exchange is an invitation to an audit. The exchanges themselves are on the hook for failure to file 1099's and for failure to follow regulations about "knowing their customers" < i.e. things like collecting proof of identity, social security numbers, verifying names and addresses. > Exchanges are going to face overwhelming pressure to disclose the identities of their customers.
It will be years before you hear from the taxing authorities. Often people think they are free and clear, only to find 2020 comes with an audit notice or worse. The civil and criminal penalties are potentially quite severe. Please don't court disaster.
Pay what you own now -=- DrStrange
PS I especially encourage people who disclose their earnings in public forums to properly pay their taxes, whatever the jurisdiction you live in. Your screen name isn't going to hide your identity vs a serious inquiry.
