Just pay your damn taxes you DO NOT want the IRS riding your ass and auditing you every 4 weeks.
Heh, but if you are mining through tor and bought your hardware anonymously as well, can they really hold you to anything?
Well there's a distinction between what you could do and what you should do legally. Yes, you probably could get away without reporting profits generated from mining, but if you were found out, it could be bad, especially if it's a significant chunk of change. The size of your operation also might determine your risk. Just as millions of people might sell a thing or two on ebay or craigslist and not report the proceeds as income, they legally should, though the IRS really focuses most of its resources on recovering the most in unpaid taxes. Yes, if you do anything that generates a profit, technically you should report it. If you do run a mining operation that's quite significant in terms of profits, you might consider registering with your state as a sole proprietor or S-Corp. It would allow you to deduct the cost of your rigs from your taxable income. I'm not a tax professional.
