[djf]

Well, Bitcoins don’t, afaik, claim to be anything like “legal tender” or “dollars”.

So I’m not sure the FED has any jurisdiction. I mean I could go on Amazon and sell single hairs off the top of my head and the FED wouldn’t have power to stop it.

But that, sadly, is the failure of our system. Even if the FED were to admit it didn’t have the power to stop it, if Bitcoin (or anything else) became a threat to the dollar (FRN), then the FED would somehow INVENT the power to stop it!
And the courts and police would suck up and agree.

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[Cementjungle]

So I’m not sure the FED has any jurisdiction. I mean I could go on Amazon and sell single hairs off the top of my head and the FED wouldn’t have power to stop it.

Any gains you make from Bitcoins would be taxable just like barter gains, or anything else. They just haven't yet hammered out the details (capital gains vs. ordinary income, etc.).

The IRS has the power to look into your safe deposit box, so I don't see why they wouldn't have the power to look inside your digital wallet if they have probable cause.