this link was fantastic insight. For others who may read this thread - it is on laws that make it difficult to comply with. A person can not comply with a law and challenge any penalty (if enforcedZ) through a jury trial. This article discussed a lot of weird laws that make it almost impossible to comply with.

My initial thoughts would be to track balances of lightning wallets at the start and end of year, documenting where large, easy to track deposits come from or large withdrawals went to. Screen capture wallet history (like here) when available.

Since I tutor others on how to use bitcoin and now getting into Lightning, it feels like I should have some logical system to address the IRS.

appreciate the link mucho!