Yes of course it is possible to track your thru your IP. But the closest anyone will ever get is to your Service Provider and a approximate area that the ISP covers. Like a City. Without a warrant they wont get anything more.
Before you ask no you can not block or hide it completely. You can try to use Proxies for websites but you can still be traced through them if the person knows what they are doing. Not to mention your IP can not be proxied or blocked when trying to game.