I don’t know. However, some things I do know:

1)Once the IRS is on you, they may not get off for years. My buddy has been audited for like 3 yrs. He didn’t do anything wrong, but his wife died and they decided his return suddenly showed 1/3rd the money as normal and voila, flagged. I think they finally left him alone.

2)People often don’t realize how it may affect you. I knew someone that knew someone that wasn’t turning everything in, getting paid in cash. Well, he went to buy a house and no one would approve him for a loan (not enough income). He had to rent, lol.

3)There is a paper trail a mile long if he bought via an exchange. I’m convinced the govt has close ties to Coinbase. They scan and analyze the chain/wallets regularly, GUARANTEED. There is nothing anonymous about it coming from an exchange. They almost all have KYC. It could one day be a hard bite on that arse.

Sure, you MIGHT get away with it, but why take the chance.

If these goobs were long-term holders instead of short term traders, taxes aren’t even that bad. LT capital gains is 0% for many depending on income.