Another misconception is that people actively trading cryptocurrencies don't need to record those trades. The way cryptocurrency holdings will be dealt in your taxes with will vary depending on how you used it. People actively trading cryptocurrencies, for example, will have to use different reporting methods than people using it to make purchases, or simply holding it. 'Grossly underreported'Hobbs said in the United States, cryptocurrency gains are "grossly underreported," but the Internal Revenue Service is pushing for change. Cryptocurrency transactions are anonymous, but they're not untraceable, and any exchange that has your information may be compelled to give it up.

Source: CBC News February 18, 2018 22:18 UTC