According to ChainCatcher, a16z crypto recently commented on the draft 1099-DA form of the U.S. Internal Revenue Service (IRS). The main points are as follows:

- Each digital asset transaction requires multiple brokers to submit Form 1099-DA, resulting in unnecessary duplication of information reporting and placing an unreasonable burden on filers;

- Requiring brokers to report wallet addresses is unnecessary and puts sensitive taxpayer information at significant risk;

- Providing the information required on Form 1099-DA is costly and in some cases impossible;

- The final rule should delay or “phase in” the effective date of digital asset information reporting requirements;

-Non-custodial wallets and digital asset payment processors should be removed from the “broker” category listed on Form 1099-DA;

-The IRS should not require the filing of a 1099-DA form on the disposition of fiat-backed stablecoins and most NFTs (non-fungible tokens);

-The requirement to file Form 1099-DA should include a minimum threshold that would allow brokers to aggregate transactions for reporting purposes.