I am reading a lot about bitcoin IRS tax notices telling people to back and resubmit the taxes because they did not fully report income. I just got one and have been pretty compliant to the best of my ability in reporting. Do you guys know anything about Bitcoin with alt coin trading pairs and taxation on any gains with that? My understanding was that before 12/31/2017, if you made money by increasing your bitcoins from trading alt coins that you could try to utliize the "like-kind" clause which does not force you report a tax on that trade.

For example, if I make 3 BTC in profit from trading alt coins against BTC in 2017, then does my BTC profit count as a taxable event if I never cashed out?

Any opinions or thoughts on this would be much appreciated.