April

The Chamber of Digital Commerce, a leading trade association in the blockchain industry, has submitted its feedback on the United States Internal Revenue Service’s (IRS) proposed Form 1099-DA, which is intended for reporting digital asset transactions.&nbsp;
The chamber’s detailed response <a href="https://digitalchamber.org/wp-content/uploads/2024/06/Digital-Chamber-1099-DA-Comment-6.21.241651.pdf" target="_blank" rel="noopener nofollow">highlights</a> the need&nbsp;to simplify the form, making it more straightforward for brokers dealing with digital assets such as cryptocurrencies to use. It also highlights privacy concerns, including requesting only the necessary information for reporting digital asset transactions by taxpayers.
<h3 data-ct-non-breakable="true" id="excessive-information-requests-and-privacy-concerns">Excessive information requests and privacy concerns</h3>
The chamber criticized the draft form for requesting excessive information. It suggests that the final form only requires information necessary for basic tax reporting, while brokers should retain additional details for use during specific IRS examinations.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/fc2185ef-da66-44cf-9a3d-7a9a61da820c.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/DigitalChamber/status/1804214790371565725" target="_blank" rel="noopener nofollow">The Digital Chamber</a>
 </figcaption>
</figure>
The blockchain advocacy group also raised concerns about the form’s request for sensitive information such as transaction IDs and digital asset addresses. It argues that such details could infringe on taxpayer privacy and should only be collected if there is suspicion of criminal activity.
The feedback points out that the draft form implies the need for specific broker instructions, which were not included. The chamber advises the IRS to release the instructions for public review before finalizing the form to ensure brokers can accurately complete it.
Related:&nbsp;<a href="https://cointelegraph.com/news/blockchain-association-objects-irs-broker-rule">Blockchain Association objects to IRS broker rule in letter</a>
It also suggested that the form should allow brokers to indicate if a digital asset is subject to a different tax rate, such as non-fungible tokens that might be treated as collectibles and taxed at a higher rate. It states that this would help prevent errors in IRS processing and ensure accurate tax reporting.
The IRS <a href="https://cointelegraph.com/news/irs-draft-2025-digital-asset-reporting-form-us-taxpayers">released the draft form</a> on April 18 and&nbsp;invited comments. The chamber’s input follows its earlier comments on related proposed regulations submitted in November 2023.
According to the draft form, the brokers will prepare Form 1099-DA for every customer who sells or exchanges digital assets. Brokers include kiosk operators, digital asset payment processors, hosted wallet providers, unhosted wallet providers and others. 
After <a href="https://cointelegraph.com/news/irs-releases-draft-proposed-reporting-rules-digital-asset-brokers">announcing the proposed reporting requirements</a>, the crypto community weighed in. The Blockchain Association <a href="https://cointelegraph.com/news/crypto-advocates-proposed-irs-rule-brokers">said the rule contains</a> “fundamental misunderstandings about the nature of digital assets and decentralized technology.”
Magazine:&nbsp;<a href="https://cointelegraph.com/magazine/crypto-zero-knowledge-voting-finance/">Beyond crypto: Zero-knowledge proofs show potential from voting to finance</a>.

Blockchain advocacy group raises privacy concerns over IRS crypto tax form

Table of Contents

Cointelegraph

دیگر آرٹیکلز 22 جون، 2024 پر پبلش کیے گئے ہیں

Solana and BitBot Face Rejection As MoonBag Gains Global Approval During Top Crypto Presale in 2024

Breaking News: Binance Issues Statement on BTCTurk Hack

New Solana Memecoin Daddy Musk Will Surge 14,000% in Two Days – Should You Buy?

MoonBag Dominates As The Best Presale In 2024 Raising Over $2.7 Million With Staking Rewards Whil...

Altcoin Market Poised for Potential Rally Amid Current Uncertainty

Solana Price Witnesses Brief Uptick Amid Strong Bear Dominance

Join our free newsletter for daily crypto updates!