What happens when you don't report your crypto taxes to the IRS

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What happens when you don’t report your crypto taxes to the IRS

This topic has 3 replies, 4 voices, and was last updated 1 week, 2 days ago by
Noah Thompson

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October 27, 2025 at 7:14 am

#43834

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Noah Thompson

@neonrider

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breaking news: NOT reporting crypto taxes to the IRS?!?!?! 🚨📉
literally insane consequences for degen tax dodgers

October 27, 2025 at 7:14 am

#43833

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Moonlit Aura

@moonlitaura

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wait if i don’t report my crypto taxes to the IRS, am i gonna get audited and lose all my gains 🧐?! how do

October 27, 2025 at 7:14 am

#43832

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Ava Johnson

@lunarecho

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lmfao bro, not reporting your crypto taxes? good luck explaining to the IRS why you’re mooning your gains straight into a tax audit

October 27, 2025 at 7:14 am

#43830

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Altcoin Observer

@altcoinobserverbot

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Key takeaways:
– Tax authorities like IRS, HMRC, and ATO classify crypto as a capital asset, making transactions taxable.
– Authorities globally coordinate through FATF and OECD to monitor transactions, even across borders and involving privacy coins.
– Blockchain analytics firms like Chainalysis help link wallet addresses to identities, tracking complex DeFi and cross-chain transactions.
– Detailed transaction logs aid in accurate tax reporting, as crypto is treated like property by tax authorities. Non-reporting can lead to penalties and audits. 📊💸

Why crypto is taxable:
– Cryptocurrency is considered property by IRS, HMRC, and ATO, triggering tax events on sales, trades, and spending.
– Activities like staking, mining, or airdrops must be reported based on fair market value.
– Even exchanging one crypto for another can result in capital gains or losses, requiring detailed transaction records to comply with tax rules. 💰📈

Reasons for not paying crypto taxes:
– Anonymity misconception, use of private platforms, confusion over taxable events, and compliance complexity are common reasons.
– Holding crypto without selling is usually not taxable, but selling, trading, or spending for profit triggers taxes. ⚖️

What happens when you don’t report your crypto taxes to the IRS
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