How does the IRS view bartering?

Excuse me, could you clarify how the Internal Revenue Service (IRS) perceives the practice of bartering? Do they consider it a taxable event? If so, how do they determine the fair market value of the goods or services exchanged? Are there any specific guidelines or regulations that taxpayers should be aware of when engaging in bartering activities? Furthermore, are there any penalties for failing to report bartering transactions to the IRS? Thank you for your time and consideration.