Re: [INFOGRAPHIC] What Are Bitcoins and How Are They Taxed? (Comments from TurboTax)
Guilt people into paying taxes? I suppose that's one way to look at it. You can declare your bitcoin earnings or not, as you see fit, but if you don't, and you get audited, be prepared to pay the consequences. Income tax evasion is a serious crime.
So, there must be such a thing as a tax prison?
I suppose the crime would be "being born"?
On a more serious note, I would like to see any taxman try to find my bitcoins.
On an even more serious note, I don't think you would like to see that.
There is no aspect of the IRS audit process that any rational human would enjoy seeing. Not to worry though. Unless you are laundering serious green through bitcoin, you're probably not a big enough target to show up on their radar.