- 46d 1h 12m
Be very careful trying to be clever with taxes and crypto. The IRS is using services like Chainalysis to track transactions. You gave exchanges your KYC information when you bought the coins presumably. You are very trackable unless you do significant work to hide your coins. Even if you do hide the coins, they still know how much you bought.
Blockchains are entirely transparent on the base layer when it comes to transactions. If a UTXO can be assigned to you as an individual then your usage can be tracked. Trying to outsmart the IRS is gunna be a bad idea unless you really know what you're doing.
Worth at least skimming this. Its not correct to assume you're safe by default from tracking.
I'm not actually looking to do any such thing, I was just more curious about the reality of it. Not really having followed crypto for the past 10 years, my basic understanding (obviously flawed) was that it was a monetary system that was largely untraceable. Clearly not the case.
I don't even own any appreciable amount of crypto, but obviously looking into more.