So most of the time, you sell fiat to purchase Bitcoin. From there, you have to sell your Bitcoin to purchase another coin, say for example, ETH or LTC. If your Bitcoin went up, you have to pay taxes on that transaction.
(In before "you only pay taxes when you cash out to fiat." Depending on your country, that statement is incorrect, when you sell that Bitcoin, it's a taxable event, period).
Using an atomic swap, there's no sale at all here, as the transformation is done at the technology layer, you've never sold anything or cashed out.
I don't think there is a clear answer here since this is an emerging technology, but it does seem like it would fall under the like-kind exchange rule.
Curious to hear other opinions on anyone who has done atomic swaps, as I think this could be a solid technology to increase adoption and decrease friction across the entire crypto landscape.
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