Is bitcoin the perfect answer to IRS audits?

[SaintDevil]

I was just asking about the law. It's good to know. I love paying taxes because I always get a big return 
I just wish US had a flat rate system.

A big return just means that you paid too much taxes throughout the year.  Basically you gave the government an interest free loan for a year.  Instead of having that money available to you throughout the year when it might have been useful, you let the government use it free of charge, and then they just pay you back your money that they've been using throughout the year when you file your taxes between January 1 and April 15.

Generally it would be better to have your employer adjust your withholding so that when it comes time to file your tax forms, you neither owe anything nor get a refund.  Then you'll get all that extra money spread out throughout the year ahead of time.  You can then use it (to buy BTC?), put it in an interest bearing account, or loan it to someone who will pay you interest (and who you can rely on paying you back).

I just usually have interest from my debt that I deduct , and I am also in school. I have an accountant family friend who always did our taxes.
I had always claimed 1 on exemption when I worked in retail store.
But this year I got a new job as a web developer and now my form is w-9 instead of w-2 and I do not know how she is going to work around that.

[DannyHamilton]

No worries.  You can work with your accountant family friend to deal with your taxes.  If you haven't already, make sure you give them a call and let them know that you will be receiving a 1099 instead of a W-2.  Let them know approximately how much you expect to be earning per year.

Depending on how much you earn, you may be required to file (and pay) taxes quarterly.  If you aren't setting aside some money to pay taxes this year, you may be in for a big (and very unpleasant) surprise.  Since you are 1099, the person who is paying you is not withholding any income taxes for you.  At the end of the year when you file your taxes, you will be required to pay the entire year's worth of taxes (minus any quarterly taxes you have been paying yourself).  If you haven't been paying quarterly taxes yourself, then you aren't likely to be getting any sort of refund, and depending on how much you earned, you could be stuck with a very difficult to pay tax bill.

[DannyHamilton]

Note that as a 1099 income earner, you will be responsible for paying your own Social Security tax as well as your own Medicare tax in addition to your income tax.

[SaintDevil]

Sounds good, thx for your help.

[giga4less]

What if your father gave 10000 coins to you as gift two years ago as they were only worth $50. Since they were significantly less then $13000 (annual gift limit) you didn't have to report them. Do you need to report your gifts you have kept for 2 years as they have significantly appreciated? Do you need to report the gifts if you sell them?