Blockchain advocacy group raises privacy concerns over IRS crypto tax form
The Chamber of Digital Commerce proposes adding a field to the form for brokers to indicate if a digital asset has a different tax rate to prevent errors and ensure accurate reporting.
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.
The chamber’s detailed response highlights the need 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.
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.
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Author: Amaka Nwaokocha
