Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?
Bitcoins have decentralized design, so they will not distinguish which bitcoin address. It means because of the decentralized the government cant identify and recognize which bitcoin address is yours. I have read an article regarding this; some countries are being taxes but how they did it. They added income taxes when someone bought stuff or product if they paid it bitcoin.