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Read more: Kraken Is Requested By The IRS For Customer Information From $20,000
The proposed IRS crypto tax form floated on August 8 changed drastically from its April predecessor to help improve reporting digital asset transactions.
The new Form 1099-DA, “Digital Asset Proceeds From Broker Transactions,” would make crypto reporting easier on both the taxpayer and the filer. This revised draft would eliminate burdensome requirements on the part of the filer to disclose specified transaction times, wallet addresses, and transaction IDs—all of which were at least concerning from a privacy perspective in the prior draft.
U.S. taxpayers will report cryptocurrency transactions—mostly tied to centralized exchanges, including Coinbase and Kraken—conducted through brokers from the start of 2025, due by April 2026.
These latest adjustments heed criticisms from the crypto industry that this draft was overly complex and intrusive on the question of privacy. Crypto lawyer Drew Hinkes highlighted that the renewed IRS crypto tax form had been improved “massively” by reducing data reporting.
Further guidance on decentralized and noncustodial brokers will be issued by the IRS at a later date in 2022. In response to the digital currency sector’s thundershower of criticism and agitation, it has opened such a current draft to the public for comments in the following 30 days.
The IRS crypto tax comes shortly after finalized crypto broker reporting regulations from the IRS in June exempted decentralized exchanges and self-custody wallets from new reporting requirements.
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