The US Treasury Department has recently published a proposed rule requiring cryptocurrency brokers, including exchanges and payment processors, to report user information regarding sales and exchanges of digital assets to the Internal Revenue Service (IRS).
According to a CNBC report, the move is part of a broader effort by Congress and regulatory authorities to crack down on tax evasion within the crypto space. The proposed rule aims to simplify tax reporting for cryptocurrency users while subjecting digital asset brokers to the exact information reporting requirements as brokers in traditional financial markets.
Crypto Exchanges Brace For New IRS Reporting Rule
The proposed rule introduces a new tax reporting form called Form 1099-DA, which would assist taxpayers in determining their tax liabilities. By providing comprehensive information on users’ cryptocurrency transactions, the form aims to alleviate the “complexities”…
