Depends. Where did you buy your crypto with your USD? Coinbase? IRS is getting Bitcoin address information from them. Did you re-use your public address? (Don’t). Privacy is possible with Bitcoin by buying from a private party or mining your own and never re-using an address and maybe by “mixing”, but usually it is just easier to use a “privacy coin” like Monero. There are already “blockchain analysis” companies out there whose only mission is transaction/address tracking/analysis (for the IRS, etc).
I just don’t understand why the IRS is invoved anyway. You’re basically trading one currency for another. If I trade USD for Yen, I don’t give the IRS a cut. It’s silly.