NewsletterDigital Chamber CEO Shares Vital Insights Into IRS’ Crypto Tax Form 1099-DA
Highlights
- Chamber of Digital Commerce (CDC) CEO spotlights the IRS' recent crypto tax form.
- The IRS aims to be scoping in on unhosted wallets, targeting digital asset transactions.
- Additional insights into the matter.
Perianne Boring, the CEO and founder of the Chamber of Digital Commerce (CDC), recently took to a post on X, offering critical insights into the IRS’ latest draft of Form 1099-DA and what it holds for the world of cryptocurrencies. In her post shared today, April 25, the CEO spotlighted the IRS’ (Internal Revenue Service) venture into collecting additional data on unhosted crypto wallets, garnering noteworthy attention among crypto trading participants.
Notably, the U.S. IRS recently revealed a new crypto tax form draft, offering insights into the future of crypto transaction reporting. Here’s a streamlined version of the crypto tax form draft.
Form 1099-DA: A Closer Look
According to the statutory body’s official draft presented on April 19, a fresh tax Form 1099-DA, aimed at revolutionizing reporting crypto transactions, specifically orbiting unhosted wallets, was notably brought to attention.
While the official announcement has yet to be released, the IRS is actively seeking feedback to refine its draft further. This proactive approach clearly indicates the agency’s undeterred commitment to improving the tax reporting process for brokers and customers involved in the digital asset trading landscape.
Notably, this decision by the agency zeroes in on encompassing unhosted wallets under its regulatory umbrella, further mandating KYC incorporation for crypto sales & exchanges through brokers. With this, the IRS additionally tightens its grip on digital asset trading, with the abovementioned chronicle substantially weighing in.
Also Read: Visa Crypto Unit Launches Stablecoin Analytics Dashboard
When Will The New Regulation Kick In?
Per the proposed draft, digital asset brokers nationwide, including digital asset trading platforms, digital asset payment processors, and specific digital asset-hosted wallet providers, remain poised to report digital asset sales or exchanges occurring on or after January 1, 2025. In addition, under specific scenarios, digital asset brokers would also be obliged to facilitate reports on gains or losses along with basis details for sales post-January 1, 2026.
Also Read: Bitcoin Whales Taking Unrealized Profits Could Impact The Market: Report
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