They just report to irs. Utxo aren't tied to you.. and you can make moves so they don't track
Oh ya like xmr bridge on houdiniswap.com
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Check out trocador.app if you like swapping between xmr and btc
btc -> xmr -> btc is not recommended though. Trivial to trace if not done right.
Just swap to Monero and spend
Or coinjoin your Bitcoin and spend
Ok