Consensys Requests Delay In IRS Crypto Reporting Regulations
Blockchain development firm Consensys formally requested the U.S. Internal Revenue Service (IRS) on June 21 to delay the implementation of proposed tax regulations requiring cryptocurrency brokers and exchanges to report digital asset transactions.
Consensys sent a letter to ask for a delay in IRS crypto regulation, following the proposed tax regulation that was introduced in August 2023 to treat crypto brokers like traditional brokers of stocks and bonds. Under these rules, entities defined as brokers would be required to file Form 1099-DA for specific crypto transactions.
Consensys expressed concerns that the regulations “do not sufficiently consider the burden on the would-be broker, which currently includes entities that do not traditionally have any reporting obligations.”
Another draft form that was published in April 2024 sparked controversy within the industry due to its broad definition of what constitutes a “broker.”
The IRS draft form lists various types of brokers, including kiosk operators, digital asset payment processors, and both hosted and unhosted wallet providers.
Consensys criticized this draft form for lacking clear instructions and potentially leading to multiple parties reporting the same transaction.
Just now, @Consensys commented on the #IRS's draft Form 1099-DA to provide our perspective that the information required under the proposed regulations and on the Draft Form is overly broad and imposes a costly compliance burden, particularly for a #blockchain software provider.… pic.twitter.com/B36XLhr1Qc
— Bill Hughes : wchughes.eth
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