What Happens When You Don’t Report Your Crypto Taxes to the IRS

Key takeaways

• Tax authorities like the IRS, HMRC and ATO classify crypto as a capital asset, meaning that sales, trades and even swaps are considered taxable events.

• Tax authorities worldwide are coordinating through frameworks like the FATF and the OECD’s CARF to track transactions, even across borders and privacy coins.

• Authorities use blockchain analytics firms like Chainalysis to link wallet addresses with real identities, tracking even complex DeFi and cross-chain transactions.

• Maintaining detailed logs of trades, staking rewards and gas fees…