My second order went smoothly and I look forward to a 3rd, 4th etc.

Nice quick shipping and a good price. Look forward to another order..

 I appreciate the issue you are describing with BitPay, but I'd have been just this side of enraged at Amagi if I bought $80 face value of silver, paid for it, but got $10 face value in the mail.

What was Amagi's excuse for reneging on the sale? Seems shady...

You need to speak with a tax professional for all of your answers. But those forms are mandatory and tell the govt that you own a foreign deposit account, it isn't for a tax (yet). The IRS just needs to keep track of all foreign accounts so it can easily seize them when the time comes. That is why bank to bank transactions are a risky idea for sending usd out of the country.

And it doesn't matter if the usd has turned into btc, the govt knows you control a $20k account and you have to account for it. When the govt issues a confiscation order or a tax order a la Cyprus, if you don't cough it up, the Japanese govt will seize it for them and turn it over like the Swiss did. Or the feds can use the IRS powers to seize domestic assets or garnish wages.

So the only way to get untraceable btc is to trade for cash without ID. Once the feds seize your mtgox account, they will have your btc address and can trace your btc if you've sent it out.

And finally, people who exchange cash for btc are not always engaged in illegal activity. But all of them are asserting their basic human right to privacy. It is lamentable they must use btc to do that, but that is the bed we have made and know we all get to lay in it.

Talk to a tax lawyer ASAP.

To answer your query, use CryptoCurrent to take advantage of a major point of bitcoin: it is anonymous for all intents and purposes unless you do what you did. By doing a bank to bank transfer the US and Japanese govts have a record of your "very large deposit" and now you have to file at least 3 forms with the feds, form 8938, form TD F 90-22.1 and Schedule B.

With what is about to happen in Cyprus and now Spain, plus the concern all govts have disclosed about btc, telling the govt where you keep your money is risky. 

Folks like CryptoCurrent allow you to pay 5% for a completely anonymous transaction.

CryptoCurrent is my new choice in cash to BTC. Leaps and bounds better than bitinstant and even more private. From the time I clicked his "order" button to putting the paperwallet in the safe was less than 90mins. I look forward to many more transactions.

Edit: Want to make clear the 90 mins included traveling by car to the bank branch and standing in line on a Saturday.