jeffmcpa2010
Level 11

Most virtual currency transactions do not go through brokerage accounts. 

Because of that the assumption is that the IRS wants the information so they can begin tracking those who have invested in virtual currency to be sure that they report any gains.

Suspicious minds might believe the IRS might create a list of taxpayers, whom the IRS should be watching more closely in the future. (That suspicion gives me just one more reason to stay away from virtual currencies.)