The IRS's decision, if actually enforced, is going to make legitimate transactions with bitcoin almost impossible. Filling out a 1099 is a pain in the ass, even with relatively light trading, in which you might buy a block of 1000 shares at 55 dollars, and sell two blocks, one of 600 at 57.568 and another 400 at 57.569. Try doing that with the fluctuations in currency markets. If you buy 10,000 dollars worth of bitcoins, you'll need a new entry for every time you spend them, with a different price for each.

And, if they enforce wash sale laws, you could be liable for totally innocent trades. That probably won't happen though.