You presume that the IRS has to actually conduct an audit in order to assign a tax due.
Not at all. This happened to me once when I was running my business in Maryland and then moved to Nevada in late 2007. They sent me an unannounced tax bill of $3200 for the year 2006 (for which I paid taxes in NYS). Fortunately I drove all the way down from Seattle to Las Vegas to check my POB and then submitted a dispute using my NYS 2006 tax return just in time for it to not become automatically due.
And then there’s 20 year prison for those Americans who are accepting funds that are not AML/KYC compliant and the fact the no one on Steem knows where all their rewards are coming from. One can argue they come only from the blockchain as minted supply, but the upvoting is what causes the rewards to be targeted and the former interpretation opens a huge hole for money laundering.
I'm expecting things to get ugly which is why I say to stay armed near the bottom. At the same time, I know there are many in government at high levels who are involved in crypto as well which will cause a lot of opposition to the IRS and fascist elements.
But when the IRS starts seizing bank accounts (that's their preferred method of payment) as this starts to go down, how many do you think will still have bank accounts? The pensioners (I'm one of them) and those slaves forced to accept payment in USD. The rest of us are already starting to switch to crypto.
I believe that there will be a civil war at the congressional level that will create indecision as most of this transpires. My family is somewhat politically connected and I can probably get Senator Barclay's ear if I really had to (we live on Manwaring Rd - that is also my last name). Senator Barclay owns a long stretch of land on the Salmon River just west of Pulaski not far from our 70 acre homestead.
RE: Why Tax FUD actually benefits the Cause of Crypto HODL’ers