Blockchain advocacy group has expressed concerns about the privacy of IRS crypto tax forms

The Chamber of Digital Commerce, a leading trade association for the blockchain industry, has submitted feedback on the Internal Revenue Service's (IRS) proposed 1099-DA form for reporting digital asset transactions. The Chamber's detailed response highlights the need to simplify the form and make it simpler for brokers dealing with digital assets such as cryptocurrencies to use. It also highlights privacy concerns, including requiring only the information taxpayers need to report digital asset transactions.
The chamber criticized the draft form for asking for too much information. The chamber suggested that the final form only asks for information needed for basic tax filings, while brokers should keep other details for use during specific IRS inspections. The blockchain advocacy group also raised concerns about the form's requirement for sensitive information such as transaction IDs and digital asset addresses. It argued that such details could violate taxpayers' privacy and should only be collected if criminal activity is suspected.