IRS Proposes Mandatory Electronic Tax Forms for Crypto Users

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The Internal Revenue Service is proposing a new rule that would require crypto exchanges to deliver tax forms electronically rather than providing paper copies on request. The proposal centers around Form 1099-DA, the tax document used to report digital asset transactions conducted through centralized crypto platforms.

If implemented, the rule would allow exchanges to end relationships with users who refuse electronic delivery of the forms. It would also prevent customers from revoking their consent for digital forms after initially agreeing, signaling a shift toward fully digital tax reporting for the growing cryptocurrency industry.

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love that refusing electronic forms means your exchange relationship might just vanish