The tax situation is a mess and unfavorable to all parties
There have been several posts on the subject of blockchain taxes and even if we find a way to help the majority of Steemit account holders to reduce their legal and regulatory risks, we still will remain in a very unfavorable dangerous and confusing tax environment. It is possible for account holders to owe more in taxes than their account is worth in some circumstances.
The solution
It is in the best interest of all on Steemit, all who hold Ethereum or anyone who has significant holdings of any crypto, to try to reduce their own risks. The best way to do that in my opinion is by contacting members of congress and by promoting the activities of CoinCenter.
The Blockchain Caucus is a group of congress persons who you can and should contact. These are the policy makers who are in a position to vote in the laws which dictate the future of the blockchain. The Blockchain Caucus must be made to understand some of the issues with the IRS, and the confusion with regard to taxes. The goal of contacting the Blockchain Caucus should be to convince them of the requirement to simplify the tax code as it regards blockchain and virtual currencies. The simplification which most of us probably want is simply to make it clear that holders of virtual currencies will be income taxed upon sale into fiat but not prior. This one change would solve the problem on Steemit entirely and end the confusion, but it would require either changing the tax code or the IRS clarifying the interpretation of the current code.
Of course I'm not a think tank or policy maker and there could be other ways to simplify the tax code. The taxes are simply too complicated and if left as is, it will suppress mainstream adoption of blockchain technology. It would seem a Blockchain Caucus would have the goal of promoting mainstream adoption of blockchain technology so they would be the group to contact.
If you agree with this strategic plan of action then please vote up this post and resteem it.
If you are a voter in Colorado: https://polis.house.gov/
If you are a voter in Arizona: https://schweikert.house.gov/