Not filing taxes with bitcoin

[botany]

Only when the IRS sees bitcoin as a serious revenue threat, and exchanges start providing inputs to them, will they start going after people who have made gains on bitcoins.

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[sdp]

from what I have heard so far, you definitely do not want to be claiming losses from BTC at this point (as a write off on your taxes).   Even though it is quite possible for some people to have lost some money due to bad timing over the last year, since BTC is so new, it is almost like an instant way to get audited.  

Just because you are audited doesn't mean anything bad will happen to you. If you have done nothing wrong paid your taxes then an audit will be nothing more then a small headache. If you accurately report your income and don't over report your deductions then nothing bad will happen to you, and if you were to under report your deductions you could receive a refund.  

Fixed that for you.

[Mobius]

from what I have heard so far, you definitely do not want to be claiming losses from BTC at this point (as a write off on your taxes).   Even though it is quite possible for some people to have lost some money due to bad timing over the last year, since BTC is so new, it is almost like an instant way to get audited.   

Just because you are audited doesn't mean anything bad will happen to you. If you have done nothing wrong paid your taxes then an audit will be nothing more then a small headache. If you accurately report your income and don't over report your deductions then nothing bad will happen to you, and if you were to under report your deductions you could receive a refund. 

Fixed that for you.

Everyone does not owe taxes. There are some situations when people legitimately do not owe taxes. My example also covers people who have taken deductions that were correct to take. What most audits look for is to make sure that the deductions actually should have been taken, and that the correct amount of taxes was paid.

[anthonyvmaz]

Let's say i purchased 5 BTC through Coinbase, and made some killer altcoin trades and ended up with 50 BTC. Now let's say i send this 50btc ($21k at its current exchange at $420usd (lol)) back to Coinbase to have it deposited into my bank account, i'm assuming this would reach the irs and i'd get hit with a bill. Not a big deal really, I'm not crying over it, but what kind of percentage would they be asking for?

OR lets say i transferred this 50btc at $400/week into my bank account instead of all at once.... would this still be monitored/reported?

[TheArmorer]

In hopes that there is no future tax law associated with digital currency, is there truth to having to claim the money you transfer from your wallet to your bank account as income? The banks, as far as I know, only report interest earned on an account. Which would be fine if you are with a large bank, but a credit union reports the money the interest is earned from to the IRS.

Anyone have insight or thoughts as to how this tax on income actually works after transferring the money from a wallet?