Core,
If any of this is true, then I was already screwed for 2013 anyway ... I don't think the few trades I made after October make much of a difference. But, as we already pointed out, how does posting a drastic policy change statement in "obscure corners" then not enforcing it, despite the fact that it could be easily enforced, qualify as notice? Until November, at least, the Folio FAQs still said any LC member could participate, and I was unaware that had been changed until I checked today. Apparently, if you call or email a question, you get no meaningful response. I bet most users who use Folio and don't read Lend Academy have no idea this is even going on.
My guess, if there is a tax related problem, is that LC and regulators are working out a solution, users will be held harmless, and it will be resolved without the IRS raiding my house.