I apologize if my post seemed confrontational. If you are a US citizen there is some information which might be relevant. Legal counsel or tax professional advice might not even be sufficient since this is still new and fairly obscure legislation; adding Bitcoin into the mix results in multiple unknowns.

The legal standing certainly hasn't been officially determined yet, although in the US any financial instrument or income-generating asset valued over USD$10,000 and held outside of the US must be declared; not necessarily taxable, but the Gestapo IRS must be informed of its existence by using a TDF 90-22.1 (PDF) form. I see no reason for Bitcoin to escape similar treatment, since it is basically a supranational currency outside of any regional jurisdiction. Oh, did you get the memo about the new TPS reports?

Be warned: if you do report your Bitcoin holdings, you may be risking more than you bargained for. The initial reaction of most governments in the face of potentially threatening uncertainties is to shoot first and ask questions later.

No service that any gov't provides is anything that couldn't be provided as a utility. If emergency services of police, fire and medics (to name a few) were paid for on a utility and/or per-use basis, there would be little to no justification for the bureaucracies that dwarf the actual work force. The same goes for conflict mediation and legal services. There is empirical evidence that shows private contract services which develop just such a utility system cut costs while providing a better level of service.

Control of commerce through the money supply has historically marked the transition from a government that respects its constituents to one that demonizes them. In the latter stages of a government's lifespan, arbitrary retribution can be exceptionally harsh.

The services I linked to in my previous post provide extensive information on how to protect yourself and your assets from needless government waste and aggression. Make use of them if you can.