How does the IRS keep track of crypto? And avoiding audits

Seems impossible. Worse for us in IM.

I am in US, but use out of country IP to trade on Binance. Because of these laws, Binance has nothing on me. No KYC.

I buy bitcoin occasionally with Cash App, which knows who I am.

The IRS knows I bought X amount of BTC with CashApp, but not anything after that.

I receive some payments in BTC, alt coins, some in XMR. The thing about XMR is it's completely anonymous.

If I were to just take the crypto I earned and exchanged for BTC, then put into and sold into fiat. The IRS would think it's a capital gain, when technically it's income. But because of crypto's way it's not possible to see the origin.

If I also just took the crypto I earned and put into my Binance trading account,then later took out and declared as capital gains. How do they know if or if not that it's from my initial purchase of bitcoin with cash app?

They also don't know which deposit it's from. Is it from his purchase of bitcoin this year or 3 years ago? So for capital gain they don't know if they tax me 35% for short term or lower term.

Now if anyone making a substantial amount and dealing with tons of different coins and sources of income of crypto, how do you take care of taxes? And not get audited?

I understand some just don't pay, but doesn't seem possible if exchanging $20k+ from crypto to fiat.

In my country they only check if you transfer to fiat. What you do on the blockchain is irrelevant to them. The tax applies on the withdrawal.

I think the US has different rules. You should ask an accountant.

If you work with more than 100k per month just register a company in a tax heaven get a bank account attach a credit card to that bank account....enjoy your money withoit paying tax.....make expensive purchases only in cash.

Everything with your name is tracked. Use something without your name to not be tracked.

Go stealth. There is always a way

Just wait for the US dollar to collapse so you don't worry about the IRS anymore