Re: Reporting bitcoin mining earnings to IRS, Post FinCEN.
my big worry is if i do not report now, they may come at me 5-10 years from now with interested owed.
If Bitcoin is still worth anything 5-10 years from now and you own some now you'll likely be able to manage that risk by just moving outside their jurisdiction.Unless the OP renounces citizenship (not a bad idea right now), moving does nothing except offer a potential 95K tax credit if you live 330 days (or something like that) outside the USA.
The only country on the planet that taxes its citizens regardless of where they live.
...the land of the free
Sadly (AFAIK) the US the only country which bases tax obligation on citizenship not residency so your only option to avoid US taxes is to renounce your citizenship which is no easy task.
Also to renounce citizenship one must:
a) be current on all taxes (yes they will check with IRS and this will likely prompt an audit of your last 7 years of tax returns).
b) already have citizenship with another country (difficult in most countries to gain dual citizenship after birth but there are some nice caribbean nations willing to do so for a price).
c) pay an "exit" tax on value of assets at the time (I only wish I was kidding).
d) pay a processing fee of $540
In 2011 only ~1,100 people successfully renounced their US citizenship (on edit: looks like ~1,800 in 2012). Expect to spend thousands of dollars on legal & CPA fees and the process will take a couple months.
Renouncing US citizenship may eliminate future liability but it does nothing to eliminate existing liability.