[logfromblammo]

I am sure the IRS could bust you for tax evasion even if you were the world's only completely honest person. The tax code is so needlessly complex that there is always some hidden land mine that could be used to nail you to the wall.

Just don't reveal your Bitcoin activities to the authorities, purposefully or accidentally, and they will never find any reason for their flagging algorithm to elevate your account to human scrutiny. Nor will they have evidence that could be used against you.

Anything passing through an exchange that follows state banking rules might get you into trouble, but you don't necessarily need to use an exchange to turn BTC into USD.