Bitcoin

The U.S. Internal Revenue Service (IRS) has issued an updated version of the 1099-DA tax form, intending to make it easier for crypto brokers and investors to report <a href="https://optimisus.com/press-releases/the-race-to-1-which-cryptocurrency-will-get-there-first/" rel="noopener noreferrer nofollow">digital asset transactions</a>.The revised edition, slated for use for the 2025 tax season, represents a notable enhancement over the April 2024 iteration. The latest revised regulations can be seen on the official IRS website for a period of 30 days, during which the public can provide their comments.The new 1099-DA form includes a significant change, which involves eliminating the obligation for investors to provide their wallet addresses and transaction IDs. This modification aims to address privacy concerns by eliminating the necessity to submit sensitive information.The current version of the form now simply requires the transaction date, hence eliminating the necessity to provide the precise time of the transaction. Brokers are now exempt from the requirement of specifying their type of brokerage, which further simplifies the form.The redesigned 1099-DA form has been lauded by crypto tax specialists as a significant enhancement. Jessalyn Dean, Vice President of Tax Information Reporting at Ledgible, specifically highlighted that the old version was perplexing and challenging to comprehend. Andrew Rossow, an attorney and CEO of AR Media Consulting, opines that the IRS has the potential to streamline the filing procedure for investors.The issuance of this latest version comes after the IRS’s recent instructions for brokers on the disclosure of virtual currency transactions and its intention to include decentralized and self-custodied brokerage firms in its renewed emphasis for the upcoming year. The 1099-DA form is currently in the process of being completed and is anticipated to be utilized for the tax year 2025.

The IRS’s new 1099-DA draft simplifies crypto tax reporting by addressing privacy concerns

Optimisus

Other articles published on Aug 12, 2024

BabyDogeCoin Launches BabyDogeKids YouTube Channel for Children's Educational Content

Bitcoin Analysts Predict Potential Price Surge in 2024

Cryptocurrency Filecoin Rises More Than 3% In 24 hours

Tech giants losing momentum as AI progress disappoints investors

Crypto startup funding grows to $2.7B in Q2 despite fall in total deals

World’s largest Bitcoin miner announces $250M raise to buy more Bitcoin

Join our free newsletter for daily crypto updates!