The hiding crypto from government entails im large part avoiding taxes, yet it seems like the government does not do much to recover lost taxes on current schemes such as fiscal paradises and so on. I doubt the governemnt would go as far as locating a harddrive, seizing it just for tax purposes. Something else must raise their flags for them to go that route. Also this route is very hit and miss in my oppinion and on a case by case basis

"Does not" and "cannot" are two different things.

My read is that tax enforcement failure is intentional, lubricated by political donations and influence, vs incompetence.

See the high-net-worth enforcement group at the IRS that was quickly shut down for murky reasons.