The IRS thinking might be: (a) People who order on Overstock using Bitcoin are likely to be dodging a small amount of tax. (b) People who dodge a small amount of tax in one transaction are more likely to be dodging a large amount of tax on another transaction.
Therefore, an Overstock order in Bitcoins could be a 'red flag' that causes the IRS to look into your other tax arrangements.
Therefore, an Overstock order in Bitcoins could be a 'red flag' that causes the IRS to look into your other tax arrangements.