For example you mined emc2 at $2 bucks last quarter irs counts that as income right away the day it's mined. However emc2 is now .20 cents And your screwed.
I wish the IRS the best of luck trying to enforce that...
To the IRS your a criminal for mining if you don't report your earnings accurately or your hiding your mined coins, According to them you will be faced with a 250k fine and be sent to prison for 5 years for not reporting or hiding your mined earnings of a buck a day for your 1080 ti. LOL
Seriously hire an accountant, its not worth testing the irs, They can audit your 5 years later for your past history.
https://www.irs.gov/newsroom/irs-reminds-taxpayers-to-report-virtual-currency-transactions"taxpayers could be subject to criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions. Criminal charges could include tax evasion and filing a false tax return. Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000."
happy mining folks, Enjoy your pathetic profits or losses and risking on catching your house on fire and be sent to prison.