This is a complex answer to a complex question:

One the one hand, if one wishes to use government systems meaning fiat, accounting, taxes, etc., then there seems to be resources available by "crypto" lawyers and "crypto" accountants to guide you along the way.

Also, a good resource would be River Financal's support pages for this issue: https://river.com/learn/bitcoin-taxes-and-estate-planning/

Most people will go this route because they are too afraid to do things outside of governments and their enforcing departments and will stay in the government's jurisdiction.

Rightfully so, because governments hold all of us Under Duress because they threaten us with violence (fines, coercion, assault, battery, kidnapping, imprisonment, etc) when there has been no injured party, but only when their made up "laws" are not followed. These threats of violence loom over all of us, thus leaving us Under Duress.

In another world, one without violence, which is moral, I take Bitcoin in my private practice under my jurisdiction. I do it the right way via private contract and free will choice. No need now to "prove" or show "income" as I am no longer in their jurisdiction.

Some resources to understand the moral way are -

Mark Passio's Natural Law video series: https://odysee.com/@woeih:e/Mark-Passio-Natural-Law-Seminar-Part-1-of-3-2013-10-19:c

And then this is a good primer: https://freedom-school.com/mercier/index.htm