This has started when the IRS agency collected data on Coinbase account holders who bought, sold, sent or received digital currency.

"Late last year, the Internal Revenue Service persuaded a federal judge to require Coinbase, a San Francisco-based digital-currency wallet and platform with about 20 million customers, to turn over customer information. Driving the IRS’s decision was its belief that few bitcoin investors appear to be paying taxes due on sales. The court order is one of the agency’s first moves as it clamps down on cryptocurrency scofflaws."

But of course if you never used Coinbase well than it might not so crazy after all, Using steemit of course its easy to see capital gains and easy to share the steem earned and bought you can also extract information from exchanges.

Pay your taxes on bitcoin…or else.

In a perfect world I would say fuck paying taxes.. hence we do not live an in decentralized world yet.

Coinbase is a fault in the system, since Crypto is supposed to be trail-less.

Now it is been said some cryptocurrency holders are now disclosing past tax lapses to avoid potential criminal prosecution, is that not crazy to think if you do not report your cryptocurrency gains you can get tossed in jail for missing on Taxes?

Regulation is coming no matter how it looks

Your Cryptocurrencies which are held for trading are treated as a commodity and if gains or losses are made, it must be reported as a capital gain or loss, with 50% being taxable so make sure you have all this data ready.