The United States Internal Revenue Service (IRS) has extended the commentaries period for crypto tax reporting rules proposed in August 2023. The public consultation will last until Nov. 13.
The “Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions” were made public on Aug. 29. According to the regulations, brokers will need to adopt a novel reporting form to streamline tax submissions and reduce instances of tax evasion.
The proposed Form 1099-DA would “help taxpayers determine if they owe taxes, and […] avoid having to make complicated calculations or pay digital asset tax preparation services to file their tax returns,” according to a Treasury Department statement. In 2026, the proposed rules will come into effect, impacting sales and exchanges conducted in 2025.
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The crypto community didn’t react well to the proposed tax rules. DeFi Education Fund CEO Miller Whitehouse-Levine called them “confusing, self-refuting, and misguided,” while Kristin Smith, the CEO of the Blockchain Association, highlighted the difference between the crypto ecosystem and traditional finance.
Paul Singh Grewal, Chief Legal Officer of the Coinbase crypto exchange, urged the crypto community to actively participate in the movement against the United States Treasury’s proposed regulations. If the proposed regulations become a law, he added, it would put “digital assets at a disadvantage and threaten to harm a nascent industry when it’s just getting started.“
Meanwhile, members of the United States Senate have called on the Treasury Department and IRS to advance a rule “as swiftly as possible.” Elizabeth Warren, Bernie Sanders and five other Senators criticized a two-year delay in implementing crypto tax reporting requirements.
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