>>This is tax fraud.
It is not; you only have a tax liability when you cash out, not when you hold, you could cash out and have a gain or have a loss and you need to reflect that on your income tax for that year.
It depends [1]. If you receive the Bitcoins for goods or services, they are taxed as income. If you hold them as capital assets, the IRS won't tax you for holding, though your state or local jurisdiction may. Either way, not reporting those holdings is tax fraud.
[1] https://turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/Tax...
Disclaimer: I am not a lawyer nor a CPA. This is not legal nor tax advice.