The post IRS Updates Crypto Tax Form, Drops Wallet Address Requirement appeared on BitcoinEthereumNews.com.

U.S. tax authorities have unveiled a revised form for crypto investors, with the aim of simplifying digital asset holders’ taxes.  The 1099-DA, released as a draft on Friday, offers more “ease and clarity” to tax filers with crypto investments, the IRS said Friday in a statement. The revamped form omits requirements from its previous iteration, including questions that some digital asset proponents considered intrusive to crypto holders’ privacy.  Most notably, the latest version of the form no longer asks for filers’ crypto wallet addresses and transaction IDs, the latest version of the form shows—nor the time crypto transactions took place pertinent to their investment activity for the given tax year. Additionally, tax filers who serve as crypto brokers do not have to specify which type of broker they are.  While the latest 1099-DA revisions will mitigate some privacy concerns for digital asset investors, there is more the U.S. tax authorities can do to make the filing process simpler for these investors, Andrew Rossow, CEO and attorney at AR Media Consulting, told Decrypt.  “The new form may address some of these issues but doesn’t necessarily solve the underlying challenges of tax compliance in the crypto space,” Rossow said Friday. “The crypto tax landscape remains complex for both individuals and businesses, especially with SEC/CFTC still debating swimlanes.” In addition, he said, the IRS appears to be focused only on the most mainstream avenues, despite the diversity of the broader crypto market. “The focus on centralized exchanges like Coinbase and Kraken certainly overlooks the burgeoning DeFi ecosystem, which, as we know, operates on fundamentally different principles,” Rossow said. “This could create an uneven playing field and stifle innovation in the crypto industry.” The IRS could not only add compliance costs for crypto businesses, he added, but the collection of data could create new…

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Filed under: News - @ August 10, 2024 8:22 pm