TechFlow news — According to Cointelegraph, the Digital Chamber of Commerce has submitted feedback on the IRS's proposed Form 1099-DA, raising concerns about privacy issues in reporting digital asset transactions. As a leading trade association for the blockchain industry, the Digital Chamber recommends adding a field to the form enabling brokers to indicate whether a digital asset is subject to different tax rates—for example, taxing NFTs as collectibles—to prevent errors and ensure accurate reporting.
The Chamber's detailed feedback aims to simplify the form, making it easier for brokers handling digital assets such as cryptocurrency, while also addressing taxpayer privacy concerns by limiting data requests to only what is necessary for reporting digital asset transactions. Additionally, the Digital Chamber expressed concern over the draft form’s requirement to disclose sensitive information such as transaction IDs and digital asset addresses, noting these details could infringe on taxpayer privacy.
