According to ChainCatcher, the U.S. Internal Revenue Service (IRS) proposed new rules on Thursday that would allow crypto exchage to require customers to receive tax forms electronically, such as the 1099-DA form reporting total revenue from digital asset trading, whereas previously exchanges were required to offer paper form options.
Under the new tax filing system implemented this year, crypto exchage to report total revenue and cost basis. The IRS will automatically obtain detailed profit and loss data, thereby strengthening compliance oversight of crypto asset holders. The new rules also allow exchanges to terminate business relationships with customers who refuse to receive tax returns electronically. This proposal has not yet been finalized and is currently open for public comment. It is understood that crypto tax software platforms have reported a significant increase in the number of warning letters received by US users from the IRS, reminding them that crypto transactions may be subject to taxation and required reporting.
