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 FinCEN already knows exactly every transaction you do through the fiat system.  IRS can easily figure out what is taxable or not and send you a summary asking you to agree or not.  
 Yes, but they can't peer into your personal accounting unless you let them. It's why filing is a violation of the 5th amendment. Everything about this practice is illegal and immoral. 

You're forced to incriminate yourself and then are guilty until proven innocent. If the IRS feels you owe, then you owe. Good luck proving you don't. Fuck the IRS. it's extortion.