The IRS is trying to make life a little less complicated for crypto investors. They’ve released a new draft of the 1099-DA form, which is used to report crypto transactions. This new draft is much better than the original one they released earlier this year.
What’s Changed?
Here are the biggest changes:
- No more wallet addresses: You won’t have to share your personal wallet address or transaction ID anymore. That’s good news for privacy!
- Just the date: You only need to report the date of your transactions, not the exact time.
- No need to specify the type of brokerage: Crypto brokers don’t have to tell the IRS what kind of brokerage they are.
What People Are Saying
Crypto tax experts are happy with the changes. They say the original draft was confusing and hard to understand. This new version is much easier to read and use.
However, some experts say the IRS still needs to do more to protect privacy and make things easier for investors. They’re worried that the IRS is focusing too much on centralized exchanges and not enough on the growing decentralized finance (DeFi) ecosystem.
What’s Next?
The IRS is still working on the final version of the 1099-DA form. It won’t be ready until the 2025 tax year. The IRS is also looking at ways to improve how they handle crypto taxes in the future. They’re specifically focusing on decentralized and self-custodied brokerage businesses.
Overall, this is a step in the right direction for crypto taxes. But the IRS still has a lot of work to do to make the process easier and fairer for everyone.
