According to TechFlow, the Digital Chamber of Commerce has provided feedback on the Form 1099-DA proposed by the IRS, pointing out that the form has privacy issues when reporting digital asset transactions. As the leading trade association in the blockchain industry, the Digital Chamber of Commerce recommends adding a field to the form so that brokers can indicate whether digital assets have different tax rates, such as taxing NFTs as collectibles, to prevent errors and ensure accurate reporting.
The Chamber’s detailed feedback aims to simplify the form, make it easier for brokers dealing with digital assets such as cryptocurrencies, and address taxpayer privacy concerns, including requesting only the information necessary to report digital asset transactions. In addition, the Chamber of Digital Commerce expressed concerns about the draft form’s request for sensitive information, such as transaction IDs and digital asset addresses, arguing that these details could infringe on taxpayer privacy.