Regulation
Digital Chamber of Commerce Raises Concerns Over Proposed IRS Crypto Tax Form – DL News
The Digital Chamber of Commerce, the world’s largest blockchain trade association, has submitted feedback to the US Internal Revenue Service’s proposed 1099-DA form for reporting crypto transactions.
The Chamber’s response cites the need to simplify the form and also highlights concerns about individual privacy.
“We recommend that the final Form 1099-DA request only the information necessary to facilitate reporting of digital asset transactions by taxpayers, and that other information be retained by the digital asset broker in case it is needed in the context of the examination “, the document reads. three page letter by Policy Officer Cody Carbone.
The Chamber expressed concern about the form’s request for sensitive information, including transaction IDs and digital asset addresses, which it said should not be sought unless there is suspicion of criminal activity.
The Chamber also recommended that the IRS amend the draft form to include ways for intermediaries to clearly indicate whether activities are subject to different tax rates.
In April, the IRS released draft Form 1099-DA, “Digital Asset Proceeds from Broker Transactions,” for reporting revenue from crypto transactions and invited feedback.
It could come into use in 2025 for the following year’s reporting.