Why people pay tax to gov? is it a donation?
Some people might see it that way. Most people are just complying with tax regulations because evading them can land you in jail.
I earned more than 2300 bitcoin since 2015, and exchange a part of them on localbitcoin,paxful using westernunion. But i never pay any taxes to gov and i dont own any bank account.
In march 2017 i decided to form a llc in delaware , on december 11, i received a letter from the registered agent that i have to pay taxes from january to may 2018.
Not having a bank account might have helped to keep you under the radar, but I assume you had to provide ID to Western Union on every trade? Those records still exist. The LLC definitely puts you on the IRS' radar, and if you are now running large transfers through bank accounts, banks file Suspicious Activity Reports to FinCEN. I believe that Western Union may file SARs on high value or structured transfers as well.
My question , do IRS can see my BTC and BCC address? is it illegal to run an exchanger without a Money Transmitter Licenses?
The IRS can't know identify your addresses just by looking at the blockchain. But they do work with Chainalysis to link addresses to identities, and fiat exchange is one of the easiest ways to do that.
If you trade above certain volumes, you are considered a money transmitter and you are supposed to register with FinCEN. You are also supposed to enforce some AML/KYC procedure to comply with money laundering regulations. Many people have been arrested for running unlicensed money transmitter services for exchanging Bitcoin for cash. But it should be noted that in most of the cases, there are additional investigations into guns and drugs underlying that activity.
