They still do. Bitcoin transactions are only pseudonymous. A layperson on the street can't tell but authorities have tracking systems that can trace movements from exchanges to addresses and link that up with network data to figure out who is sending what and where to.
No. But your current transactions are not anonymous in the least even without digital dollars.
when you buy from exchanges yes it's reported to IRS but bitcoin transactions themselves have no way to be traced back to the payer or payee.
They still do. Bitcoin transactions are only pseudonymous. A layperson on the street can't tell but authorities have tracking systems that can trace movements from exchanges to addresses and link that up with network data to figure out who is sending what and where to.