A16z Crypto Comments On IRS's Draft 1099-DA Form

According to Odaily, a16z Crypto recently made comments on the draft 1099-DA form of the United States Internal Revenue Service (IRS). The key points of their comments include the following: The requirement for multiple brokers to submit a 1099-DA form for each digital asset transaction results in unnecessary duplication of information reporting, imposing an unreasonable burden on the declarer. They argue that the requirement for brokers to report wallet addresses is unnecessary and puts sensitive taxpayer information at significant risk. The cost of providing the information required by the 1099-DA form is too high, and in some cases, it may even be impossible to achieve. They suggest that the final regulations should delay or 'gradually advance' the effective date of the digital asset information reporting requirements. Non-custodial wallets and digital asset payment processors should be removed from the 'broker' category listed in the 1099-DA form. The IRS should not require the submission of a 1099-DA form when disposing of fiat-supported stablecoins and most NFTs (Non-Fungible Tokens). The requirement to submit a 1099-DA form should include a minimum threshold, allowing brokers to aggregate transactions for reporting purposes. This would streamline the process and reduce the burden on both brokers and taxpayers.