I don't see how this is good news. I am not trying to troll here, I was just talking to people the other day and telling them my arguments for Bitcoin being around for a very very long time. I was really excited about Bitcoin.
But this is a deathblow. How will businesses keep track of what a coin was worth when they exchanged a good or service for said bitcoin? This Bloomberg article puts it perfectly
"Todays IRS guidance will provide certainty for Bitcoin investors, along with income-tax liability that wasnt specified before. Purchasing a $2 cup of coffee with Bitcoins bought for $1 would trigger $1 in capital gains for the coffee drinker and $2 of gross income for the coffee shop. "
Actually this is not a problem at all. Recording transactions is what Bitcoin is all about.
It should be easy to establish base for a Bitcoin transaction. It is all in blockchain. All that is needed is a simple change to client software, and of course all U.S. citizens will have to report their Bitcoin addresses to IRS.
There is absolutely no doubt I my mind, all patriotic U.S. citizens will dutifully do so.