Tax On Bitcoin

Here is a sentence from some legal jargon about the possibilities of places like MtGOX and other exchanges to report your dollar amounts to the US Federal Government...

"There is a Report of Foreign Bank and Financial Accounts (FBAR) filing requirement for financial accounts in a foreign country when the aggregate value of the accounts exceeded $10,000 at any time during the calendar year. There is the likelihood that this requirement applies to bitcoins or USD funds held in non-US bitcoin exchanges or wallet services."

So, if you aren't close to that amount you probably don't have to worry about the feds 'knowing' exactly what you are doing. Kinda like doing side work for friends and family and not claiming it as income.

DISCLAIMER: This is not good tax advice. Just sayin'...

There's reasons why some people dream of owning a bar one day... same goes for trading BitCoins sorta. If they don't know... don't tell.