The US Internal Revenue Service (IRS) has unveiled the early draft of a tax form for reporting income from cryptocurrency transactions. The newly released Form 1099-DA, tagged as “Digital Asset Proceeds from Broker Transactions,” is currently open to comments from relevant stakeholders in anticipation of its final version by the IRS.
Crypto Community Opposes Latest IRS Draft
In a rather unsurprising response, the general crypto community has criticized certain aspects of the IRS Form 1099-DA. Ji Kim, the chief legal and policy officer of the Crypto Council for Innovation, has specifically expressed disappointment over the agency’s inclusion of “unhosted wallet providers” as brokers.
In a post on X, Kim stated that such a listing shows that the IRS does not recognize the limited access of wallet providers to the details of users’ transactions as well as the identity of these users. Meanwhile, Shehan Chandrasekera, Head of Tax Strategy at CoinTracker.com expressed the proposed tax form threatens the privacy and pseudo-anonymity of the US crypto space.
Presently, the early draft of Form 1099-DA remains subject to comments, and certain aspects of the form may change in response to the general feedback.
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Author: Semilore Faleti
