I dunno about you guys but I'm going to continue mining my bitcoins and using my bitcoins and selling my bitcoins locally for cash without putting it on my tax return UNTIL I see some way for them to POSSIBLY track it in ANY way or a benefit to me for paying them.
The "you pay your taxes or you risk being found out and fined much more than what you would've had to pay" doesn't make sense to me here because the 'risk of being found out' IMO is 0% unless they waste millions trying to figure out how to track it, then enforce even heavier regulation on the few that actually have or use or want to use bitcoins.
Frankly it's not worth it at this time for any government, and by the time it is, it'll be too late.
Maybe in a few years I'll change my perspective...
If you get audited and they look at your bank accounts and assets will there be anything to show that you've purchased or mined or sold bitcoins? Do you have a regular job or other significant source of income?
Who says I am depositing the cash I make into my bank? Also, I might not even sell my BTC. Maybe I'll keep it an use it on goods and services, the availability of which are slowly growing around me. I don't make THAT much money for the IRS to come in and have a look inside my house for assets, like computers and miners.
Do you have KYC forms at any of the exchanges where you traded? If the IRS interviews your friends will any of them know you've invested or mined BTC?
I agree that risk of getting caught can be mitigated but for many people there might be a little denial if they think the risk is zero. Maybe you've done an awesome job and the risk of getting caught is zero.
Regardless I do agree that most people won't be reporting BTC profits.
I however will be reporting BTC loss since I got goxxxed.
No like I said I do not use exchanges - local only, as everyone else should who is buying/selling BTC. Friends? I HAVE NO FRIENDS. Lol joking - but yeah again I don't make THAT much for IRS to start questioning my friends and family. And hmm good point I should not be telling anyone I invest in or mine BTC, thanks!
Just curious - were you using GOX to trade or invest? I feel like exchanges should be for traders, investors should stay with local, semi-decentralized methods of getting into BTC. I heard it's property after all, if I sell used, is it taxable? xD