- One of the top trade associations in the blockchain space, the Chamber of Digital Commerce, has provided input on the US Internal Revenue Service’s (IRS) proposed Form 1099-DA, which is meant to be used for reporting transactions involving digital assets.
- The thorough answer from the chamber emphasizes the necessity of streamlining the form so that brokers handling digital assets, like cryptocurrency, can utilize it with more ease. It also draws attention to privacy issues, such as asking for only the data required for taxpayers to disclose transactions involving digital assets.
Overzealous requests for information and privacy issues
- The draft form was criticized by the chamber for asking for too much information. It proposes that brokers should hold onto extra information for use during particular IRS examinations and that the final form should only contain the information required for basic tax reporting.
- Concerns were also voiced by the blockchain advocacy group regarding the form’s request for private data, including transaction IDs and addresses of digital assets. It contends that gathering such information should only occur in cases where there is a suspicion of illegal activity since it may violate taxpayer privacy.
- The remark highlights the omission of specific broker instructions, which are implied to be necessary by the draft form. To guarantee that brokers can appropriately complete the form, the chamber recommends that the IRS publish the instructions for public review before finalizing it.
Source:
tradingview
