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Summary
An early version of Form 1099-DA was released by the IRS, prompting concerns from blockchain company Consensys about compliance time for brokers before the filing deadline.
Introduction
Consensys recently sent a letter to the IRS requesting a delay in the implementation of tax legislation requiring exchanges and brokers to report specific cryptocurrency sales. The company highlighted concerns regarding the burden on brokers who may not have prior reporting obligations.
Main Points
An early version of IRS Form 1099-DA, based on guidelines proposed last year, treats crypto brokers similarly to conventional brokers. The form requires reporting of certain cryptocurrency transactions on behalf of clients, involving a wide range of entities such as kiosk operators and wallet providers. Consensys criticized the broad definition of brokers and the lack of specific instructions, warning of potential duplicate reporting.
Conclusion
Consensys also raised issues regarding data privacy and the tight compliance timeline for brokers. The company’s concerns highlight the challenges faced by the industry in adapting to evolving tax regulations. In the midst of these developments, Binance has recently completed Tether (USDT) integration on the TON Blockchain.
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