EVERY TAXPAYER WHO ENGAGES IN CRYPTOCURRENCY FALLS INTO ONE OF THESE GROUPS:
This group are the taxpayers who are confused and who did not report their crypto transactions on any of their tax returns.
This group of taxpayers, are not only confused over all the many crypto tax-issues, this group did NOT disclose their foreign activity.
This group of taxpayers are those who DID report their crypto transactions and DID disclose their FBAR activity. However, this group very likely made some serious mistakes in HOW they calculated their capital gains and losses and as a result they very likely overpaid their taxes and do NOT even realize it!
You're the person who borrowed money, invested in a crypto deal; AND got ripped off! You don't know how to report your losses and you are scaredbecause you didn't reportyour crypto to begin with! (WE'VE GOT YOU COVERED!)
WHICH GROUP ARE YOU IN?
Here's the deal, nobody can tell you with any confidence if the IRS can or cannot identify a person with such an arrangement. What we can tell you is that IF you are careless enough to believe the U.S. Government does not have the tools and cyber talent to identify these types of taxpayers, you will need a criminal defense attorney as your tax return will be the least of your problems while serving time for tax evasion
See FAQ #1 as you will likely be roommates in Club FED with that person
The best advice we can give you is get it right, get the amount you may owe IF you owe anything, then let us work through EVERY option available in finding a solution for the liability. You actually have the cards on your side until the IRS catches you, then you have few choices most of which involve large sums of money and people with ESQ next to their name.
Make sure you keep in touch with your cousin and he always has your address. He will eventually want to write to you from Club FED during his 5 to 8 year prison term and likely arrange a visit so you can catch up on all that is happening.
Serious as a heart attack. I guarantee you there will be many people hiring many lawyers, facing many years in prison for tax evasion and other tax crimes. I'm betting it may take a few more years, but the drumbeats have already begun and the IRS IS on the march. What is your freedom worth?