- IRS posted an updated version of crypto tax form.
- It eliminated the space for wallet addresses, among others.
- Further public comment on the form is invited.
The US Internal Revenue Service posted an updated draft of Form 1099-DA, to be used by brokers and taxpayers to report certain sale and exchange transactions of digital assets that take place beginning in calendar year 2025.
These forms will be sent by brokers to taxpayers in early 2026.
In April, the IRS had released for public comment a previous version of the form, which included spaces for taxpayers’ digital wallet addresses and the transaction IDs, as well as the type of brokers used in digital asset transactions, which have all been removed in the updated version.
The Chamber of Digital Commerce, the world’s largest blockchain trade association, submitted feedback in the form of a three-page letter to the IRS in June, DL News reported.
It 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.
“This new form will provide more clarity for taxpayers and give them another tool to help them accurately report their digital assets transactions,” said IRS Commissioner Danny Werfel in a news release.
The IRS said public comments can be submitted on the latest draft of 1099-DA for 30 days, and while it cannot respond to each because of high volume, it will review all of them.
The US Treasury completed new rules in June requiring that custodial crypto brokers — including exchanges and payment processors — report sales and trades of digital assets to the IRS, in a move aimed at curbing crypto tax evasion, DL News reported.
The rules don’t include reporting requirements for decentralised or non-custodial brokers that do not take possession of digital assets; they will be covered by different regulations, the IRS said.
Crypto market movers
- Bitcoin is down 0.78% today at $60,552.61.
- Ethereum is down 2.52% today at $2,624.85.