Remember, a public ledger is public forever. Don't think you're going to cheat on your taxes and get away with it just because they don't catch you this year. They have forever to catch you.

In most countries (including the US, contrary to popular opinion) there is no statute of limitations on intentional tax fraud. Governments will eventually catch up and easily scrape blockchains for any transactions you make that originated from KYC exchanges (and all of the companies you KYC/transact with will eventually compile your complete blockchain financial history).

It doesn't matter how many DEXs and convoluted txs you made, unless you're using Secret Network or Monero, they will be able to follow all of it if they can tie your name to any piece. If they deem your under reporting to be significant, you will get a bill, with outrageous interest charges, and they will garnish your wages.

Unless you route all your KYC deposits and withdrawals through XMR and withdraw/deposit everything to your XMR wallet before trading on non-kyc exchanges, your tx history will be public information forever.

Governments and random companies will track every move you make in greater detail than has ever been possible. It might take them 10 years, but if you're leaving all of your txs on public blockchains, they have all the time in the world to setup automated systems to identify and track you (and FYI, if you're not using Brave or Firefox carefully, Google knows all of your wallet extension addresses).

Non-kyc exchanges examples include: Mandala, Kucoin, Coinex...

This message sponsored by:

Monero

Because the yearly global black market is larger than the GDP of any country in Europe ^TM

Edit: FYI, if you are audited by the IRS, you are presumed guilty until proven innocent. If they see deposits, you have to prove that you don't owe them money. So unless you want to live like a drug dealer, you are going to pay taxes for every dollar you cash out of crypto. Make no mistake about that. XMR might simplify your paperwork, but the end result will be the same. The title really is the point of this post.

Edit 2: No, there is no statute of limitations for intentional errors in the US (search for "fraud"): https://www.irs.gov/irm/part25/irm_25-006-001r