2024

United

Digital Wallet

Request

<a href="https://bitcoinworld.co.in/irs-removed-request-for-digital-wallet-addresses-from-updated-crypto-brokerage-tax-form-form-1099-da/" rel="noopener noreferrer nofollow"></a>
<ul>
 <li style="font-weight: 400">The IRS seems to have updated its crypto brokerage tax form, Form 1099-DA, to remove requests for digital wallet addresses, among other information.</li>
 <li style="font-weight: 400">The updated Form 1099-DA is slated to go at least partially into effect in 2025.</li>
</ul>
The United States Internal Revenue Service has updated the draft of its crypto taxation form 1099-DA for crypto brokerage accounts.
“As a refresher, this is the form that ‘brokers’ will start using in 2025 to report digital asset transactions to customers,” <a href="https://x.com/_jikim/status/1821914009911652533" rel="noopener noreferrer nofollow">wrote</a> Ji Kim, Head of Global Policy, Digital Assets and General Counsel at the Crypto Council for Innovation, on the social media platform X.&nbsp;
<blockquote class="twitter-tweet">
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" style="height: 1em; max-height: 1em;"> An updated draft 1099-DA form just posted on the IRS website, which reflects the final broker regs issued in June. As a refresher, this is the form that “brokers” will start using in 2025 to report digital asset transactions to customers. <a href="https://t.co/NSSu8prl4X" rel="noopener noreferrer nofollow">https://t.co/NSSu8prl4X</a>
 Initial…
 — Ji Kim (@_jikim) <a href="https://twitter.com/_jikim/status/1821914009911652533?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 9, 2024</a>
</blockquote>

“Initial review reflects that this draft form removed, among other things, wallet addresses, transaction IDs and time acquired. These are important changes.”
Form 1099-DA, which monitors “digital asset proceeds from broker transactions,” is slated to go at least partially into effect in 2025, according to its revised Aug. 8 <a href="https://www.irs.gov/pub/irs-dft/f1099da--dft.pdf" rel="noopener noreferrer nofollow">draft</a>.
The IRS, along with the US Department of the Treasury, first proposed the crypto brokerage taxation form in August 2023.&nbsp;
Early drafts of the form required filers to submit a digital wallet address and to note whether assets are a “non-covered security.”&nbsp;
However, members in the crypto industry raised privacy concerns in addition to how the taxation reporting could affect the decentralized finance industry.
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IRS Removed Request For Digital Wallet Addresses From Updated Crypto Brokerage Tax Form, Form 1099-DA

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