Very true.
Not only that,  but it an attack on avoiding the inflation tax, which by design Bitcoin was designed to avoid.
So the IRS is not only saying you are not allowed to have a competing currency against the dollar, but you will have subsidize the dollar debasement done by the FED.

Not allowing competing currencies is illegal, since  it is something the constitution allows.

Also not only it is an attack on Bitcoin, but also on all alternative private currencies.

The good news it is a sign that we are winning the war, we may have lost a battle, but not the war.

I am a believer in freedom, and in the spirit of Bitcoin, and this law is unenforceable, even for people willing to comply it will be a bookkeeping nightmare, so I believe the law will be enforce on large business dealing with Bitcoins, therefore severely hurting the Bitcoin economy.

You should ask yourself why are they afraid of letting Bitcoin and the dollar compete on a level playing field, with same laws applying to each currency instead of discriminating against Bitcoiners. Is it because the dollar will depreciate in value and Bitcoin will appreciate in value over the years.