It basically doesn't really matter what you hold. If you hold something with a certain value that can be converted to fiat, the government will see it as something that is part of your total wealth. In that regard, it's easy to assume that you need to declare what you have, and after that you pay tax what the government think you owe them.

However, with Bitcoin there is basically no way the government (unless the government demands information from exchanges) to see what you have, and how much profit you have been making. It's your silence that will allow you to avoid paying tax over your coins. But if you're a completely honest citizen, and declare everything according to the law, then you are shooting yourself in your foot because of your honesty. 99% of the people will simply not declare any of their coins. I am part of that 99% as well.

Bitcoin and Tax: the way I look at it, just like my school days, during exams period, every semester brings about stricter supervision but you will still find out there is still exam malpractice, People will always find a way to get around tax, that is how God create human mind

I still don't get it. Are you going to say that the IRS is playing against Donald? If so, what does it all have to do with Bitcoin in general and the IRS interest in finally putting their boot on Coinbase's neck in particular? If Hillary won, would they refrain from meddling with Coinbase? Is the latter affiliated with the Clintons in some obscure way?

What's the catch?

What's so wrong with having to pay tax, anyway ? Isn't tax what paid for the road in front of your house ?

Paper money is already a tax in its own right. Because openly taxing people through seigniorage (inflation tax) would be an outrage even for the most corrupt governments and would lead to people abandoning that currency, like what happened in Zimbabwe, governments have contrived a myriad of other ways to tax people and yet more ways to justify doing that.

For example, the road in front of your house.

I don't believe there are taxes any where in the world for Bitcoin as they are a decentralised currency, no country into the world control them so no tax in near future. So I don't see any need to panic for this. As and when it shall come surely some loophole shall be discovered.

Well we are not fortune teller but i fell that it can be happen we know government are greedy and corrupt so bitcoin money they will take an action in the future and ask for taxes..  even it is decentralized currency..
This is just my own thought but there is still possibility that it can be happen in the future.

what if i say to you bitcoin was never anonymous 
And about the tax, i'm ok with it... as long as it is a small percentage. Here where i live taxes eat people alive... it's just too much and the government still doest give a good service to the people.

I agree with this. Taxation is sort of inevitable thing that is going to happen to btc if it is to be recognized by the governments and if it is to become a lot more popular than it is now. My guess is that it might slowly ruin the whole idea of btc, people might just start using another currency and we will have some kind of the war between taxations and new currencies to use till they aren't taxed. However, there are good things coming along with taxation. Ability to pay in the supermarkets or buy tickets using btc, for example.

This is the perks of being popular of bitcoin now, governments will try to use it for their countries benefit (as might they say) but for us bitcoiners it is a negative impact we use bitcoin to gain more and if ever it will be acknowledge by the government chances really is our btc will be lessen . Just like in our Jobs no matter how increase happens it cant be enough because the increase in tax goes high too.