Key Points:
The company argues that the extensive data requirements outlined in IRS crypto regulations will impose substantial compliance costs.
Specifically, Consensys contends that the IRS’s provisions fail to adequately consider the challenges faced by entities not traditionally engaged in reporting obligations, labeling these requirements as unduly burdensome. The firm is advocating for a postponement of the implementation date for any reporting obligations pertaining to software developers.
Moreover, Consensys is pushing for the adoption of multi-broker rules aimed at easing the compliance burden and cost implications for millions of taxpayers.
The IRS recently previewed the draft Form 1099-DA, which is slated to become mandatory starting January 1, 2025. The new tax form is intended for cryptocurrency brokers, including trading platforms, payment processors, and certain hosted wallets. To comply with IRS crypto regulations, these brokers will be mandated to use Form 1099-DA to report digital asset transactions to both the IRS and their clients.
In a related development earlier this year, the IRS hired Sulolit “Raj” Mukherjee, a former executive from Binance.US and ConsenSys, to bolster its expertise in cryptocurrency tax matters.
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