Let them audit bitcoiners. Bitcoiners that earn and spend bitcoin never touch dollars and are outside their purview.
Non-USD income (including BTC and barter) is taxed exactly like USD income. If you earn $100k worth of BTC in a year, the IRS will claim you owe taxes as if you had been paid $100k in USD. And if you bought stuff with BTC, they might try to apply capital gains taxes, because bartering qualifies as selling; and capital gains taxes apply when you sell BTC.
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It's not taxed if they don't know you earned it. And they can't apply capital gains if they don't know you spent it.
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Sure, you can hide your BTC income, but the IRS will audit your tenants and soon discover how much your tenants are paying you. And if you refuse to pay taxes on that income, the IRS will take your real estate.
To be clear, I'm not pro-taxes. I'm just saying that tax-evasion is riskier than you are making it seem.
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They get their compliance through fear. But in reality, who cares if you get audited? The chances are low, even with 80 billion more dollars to shake people down. They are not known for being efficient with money (lol).
So they find something and you pay some fines. Been there done that. With real estate you have options, and like a small business, you have more control than an income tax. The fear and propaganda need to be unwound. "Your duty", and "responsibility", "you owe", on the virtue side. "evasion", "fraud", "cheat" etc on bad side. It's all propaganda!
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