New Form 1099-DA Introduces Major Changes to Crypto Taxation
Tuesday, 23 April 2024, 14:00
Why Crypto Community Criticized the Crypto Tax Form
This post discusses the introduction of Form 1099-DA by the IRS to regulate crypto transactions, mandating reporting by brokers from 2025. The form aims to mirror securities standards and address concerns about tax compliance within the industry.
Key Features of Form 1099-DA
- Mandatory reporting for brokers
- Inclusion of wash sales provision
- Expanded reporting scope to real estate transactions with crypto
- Draft instructions for reporting types of transactions
- Brokers' identification requirements
Experts' Concerns and Impact on DeFi
Experts, like Shehan Chandrasekera, raise privacy concerns due to detailed transaction data disclosure to the IRS, potentially affecting crypto users' anonymity and the future of DeFi operations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.