An investor in OK traded 4x with a 10k account and of course was gun slinger relying on the lights. At the end of trading he traded over 10 million notional value and lost his money. At tax time he bought his statements to his accountant to claim his losses and offset his income.
The accountant listed the trades and showed the irs how he traded and moved the 10 million in different currencies using traunches of 200k per open.
What a night mare, the IRS was convinced this guy was dodging taxes and had money he didnt report. He was audited and taken to court to prove his case, the IRS got an education on spot 4x trading and he was not charged.
That happened 3 yrs ago when the IRS was still getting a handle on this market.
Moral of the story is when someone tells you that taxes in the spot 4x are self assessed maybe you should listen. lol