IRS is a weird one like that. They make you pay the taxes so that you would pay the right price and not tell you how much you owe, and if you pay the wrong amount then they will collect it with some interest. Meaning, they already knew how much you should have paid, if they didn't know at all then you could have paid 100 bucks instead of 1k dollars and they wouldn't know and you would get away with it.
But since they know, they can charge you with wrong amount, but if they knew, then why didn't they gave you the chance to actually learn what amount it is and then pay it? Why make people pay the amount they think they owe, instead of letting them take a guess?
How about you read more on the tax laws instead of saying they are weird? They know how to compute the correct capital gains taxes because there is a guide to follow and that guide is public for everyone to see. I bet professionals in the field of taxation knows the rules as well so you may tap on their skills if you find taxation too confusing.
They are weird. Think about it. If they know how much you owe, why not just hand you a bill with that amount? Also they realize most people get confused BECAUSE of the weird laws. Since in most countries you dont get taxed for every little trade, where as in the US you do. Of course tons of people aren't going to know what they owe. And afaik tax professionals cost a lot of money. Lets say you technically owe a few hundred or maybe even a thousand dollars on trades in a year. A tax professional is going to cost you nearly a thousand dollars (last I checked) to sift through the tens of thousands of little micro trades you've done. Unless you have an automatic software (not possible from just wallet trade functions) then you're going to have to manually calculate all that. Which could take a long time, maybe days or weeks in some cases and better not fuck up. So you're paying the tax professional more than what you owe in taxes.
I think many people, wouldn't mind paying taxes if they just TOLD you what you owed. It's like they know, but hope you are going to trip up and accidentally calculate incorrectly.
Hell, if the IRS wanted to tax trades, I could see if it's like a really large amount and you're trading for a stable coin to just hold, and you made so much that you would owe a few thousand dollars or more in taxes. But trades in which you literally would only owe a few cents? really? This is absolute insanity you have to calculate all of this if its thousands of trades. I think this is why most nations use fair common sense and just say okay, whatever you cash out, pay the gain you made on that. Be it 15% 30% or even at 50% it's more fair than wanting you to keep track of every single trade from one crypto to another.
Especially when you're literally only doing a trade to move from one wallet to another.
THEN on top of the fact that you could end up losing out.
So having a case in which lets say you traded in 2021, you technically owe money, then 2022 happens and you lose 80 to 90% of your wealth. Now you own more money than you even have! This is the most unfair unjust system in existence. Give us your blood and cut your right arm off to feed us is basically the IRS. Whoever creates these laws are either evil or really uneducated about crypto to the point of being extremely stupid to make laws on things they don't understand.
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