Got your attention? We thought so. In a recently published Notice, the IRS seems to be offering some cautionary advice about the legal risks associated with using cryptocurrencies to avoid capital gains taxes. Likely displeased by the volume of folks who have utilized cryptocurrencies to avoid reporting capital gains, the IRS may be signaling its intent to crack down on cryptocurrency trading activity. At this point, there can be no doubt that the IRS is well aware of how cryptocurrencies are used, and how to tax virtual currencies.