Summary
- The U.S. Internal Revenue Service (IRS) is reportedly reviewing a plan that would allow digital-asset exchanges to issue tax forms only as electronic documents.
- The proposal would drop exchanges’ obligation to provide paper copies, allowing issuance solely in electronic form.
- The plan is linked to the digital-asset transaction reporting system, under which the IRS will assess taxes based on reported gross proceeds and cost basis.
Forecast Trend Report by Period
The U.S. Internal Revenue Service (IRS) is reportedly reviewing a plan that would allow digital-asset (cryptocurrency) exchanges to issue tax documents to users exclusively in electronic form.
According to The Block, a digital-asset news outlet, on the 5th (local time) the IRS put forward a proposal to grant exchanges such as Coinbase and Kraken the authority to issue tax documents electronically. Previously, exchanges were required to provide users with an option to receive paper copies.
The proposal would remove that requirement and allow tax documents to be issued only as electronic documents.
The change is said to be tied to the digital-asset transaction reporting system that took effect this year. Under the system, intermediaries such as exchanges must report to the IRS users’ gross proceeds and cost basis from digital-asset sales.
The IRS plans to levy taxes based on the reported data. Whether to implement the electronic-issuance allowance will be discussed after a public comment process.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
