The Digital Chamber of Commerce, a major trade association in the blockchain industry, has expressed privacy concerns over the IRS’s proposed Form 1099-DA, which is intended for reporting digital asset transactions.
In its feedback, the Chamber highlighted the need to simplify the form, making it more user-friendly for brokers handling digital assets like cryptocurrencies, and to address privacy issues by limiting the information requested.
Key Suggestions from the Chamber
The Chamber criticized the draft form for demanding excessive information. It proposed that the final version should only require essential details for basic tax reporting, while allowing brokers to keep additional information for use during specific IRS examinations.
The Chamber also raised concerns about the form’s request for sensitive data such as transaction IDs and digital asset addresses. They argue that such information could compromise taxpayers’ privacy and should only be collected if there is suspicion of criminal activity.
Additionally, the feedback highlighted the lack of specific instructions for brokers implied by the draft form. The Chamber urged the IRS to release these instructions for public review before finalizing the form to ensure brokers can accurately complete it.
Summary Review: The Digital Chamber of Commerce’s feedback underscores the importance of balancing efficient tax reporting with privacy protections. By suggesting revisions to the proposed Form 1099-DA, the Chamber aims to ensure that brokers can comply with IRS requirements without compromising sensitive taxpayer information. The Chamber’s advocacy for clear instructions and minimal data collection reflects its commitment to both regulatory compliance and the protection of individual privacy in the digital asset space.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
