I doubt the IRS has the manpower to keep up with EXACTLY how much everyone is doing, or that the return is designed just for us to mess it up ... but I'm quite sure that if the algorithm says a variation is high enough, things are checked.

That said, I look at it this way: since I gotta pay taxes, it behooves me to know the code. The IRS treats crypto like an asset, so, short-term vs. long-term capital gains come into play, as does knowing what has to be done every year and when. What I am about to say is not financial advice, but just how I think about the matter... I try to shine a light, rather than being frustrated by the darkness.

Situation A: I buy an asset and sell it inside of 2021 -- short-term capital gains taxes are due by April 15th of this year. Whatever the bracket is for the amount of income, I pay it like regular income.

Situation B: I buy an asset on or after February 2, 2021 and don't sell it until today -- taxes are due by April 15 of NEXT YEAR, meaning I have 14 months to use the whole amount and increase it through other investment before paying short-term capital gains taxes.

Situation C: I bought an asset at anytime BEFORE February 2, 2021 and don't sell it until today -- holding it at least a year and a day makes it a LONG-TERM capital gains situation, and I don't have to pay taxes AT ALL on the first $40,500 of that, and then only ten percent in the next bracket up and 15 percent in the next bracket up.

Situation D: All of the above applies for situation C, giving me a functional tax date of April 15, 2023 to pay taxes on the portion of my gains above $40,500 -- but I can also file an extension to October 15, 2023, making my 14 months into TWENTY MONTHS to work with the whole amount to make me more income. Of course, in October, there will be a penalty attached to how many months I delayed paying, but with that extra time, I might offset that through other investments and still come out in the green...

Situation E: Imagine Situation C with a gain on EACH crypto asset BELOW $40,500. I have to report all that by April 15, 2023 ... but because it is LONG-TERM capital gains, I have to report each gain in each asset, but I owe taxes on NONE OF IT AT ALL. That's the power of holding a year and a day, and why long-term swing traders make a good living in crypto even in the United States... pick X number of good crypto assets and sell them off at or below $40,500 profit each at least a year and a day later ... zero taxes due, and you can do this as many times as you want.

The loss of privacy is a bad thing ... but you can offset it by careful planning to save your profit from excessive taxation ... hodl one year, and one day. Think about this when the bear market hits ... four-year cycle ... find proven projects, invest at the bottom ... wait and hodl two years ... sell anywhere below $40,500 in profit ... rinse and repeat. You are 23 ... plenty of four-year cycles left for you to see...