The Chamber of Digital Commerce, the world’s largest blockchain trade association, submitted feedback to the US Internal Revenue Service’s proposed Form 1099-DA for reporting crypto transactions.
The chamber’s response cites a need to simplify the form and also stresses concerns about individual privacy.
“We recommend that the final Form 1099-DA request only that information necessary to facilitate reporting of digital asset transactions by taxpayers and that the other information be retained by the digital asset broker in the event it is needed in the examination context,” read the three-page letter from Chief 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 maintained should not be sought unless there were suspicions of criminal activity.
The chamber also recommended that the IRS should amend the draft form to include ways for brokers to indicate clearly if assets are subject to differing tax rates.
The IRS in April released the draft of Form 1099-DA, “Digital Asset Proceeds from Broker Transactions,” for reporting income from crypto transactions, and invited feedback.
It may come into use in 2025 for reporting on the following year..