According to U.Today, the U.S. Internal Revenue Service (IRS) has released an updated draft of Form 1099-DA, which will be used by crypto brokers and investors to report proceeds from certain digital asset transactions. This new draft, unveiled on April 18, 2024, aims to calculate taxable gains or losses from brokered digital asset transactions. The form includes token codes and fields for wallet addresses, essential for reporting to both taxpayers and the IRS. However, the crypto community remains uncertain about how the IRS will identify brokers subject to these regulations, especially concerning different types of activities like kiosks, payment processors, and wallet providers. U.S. tax experts have also highlighted the lack of clarity in current tax regulations. For instance, the proposed regulation § 1.6045–1(a)(21)(iii)(A) defines a facilitative service as any service that directly or indirectly enables a sale of digital assets. It excludes persons solely engaged in providing distributed ledger validation services, like proof of work or proof of stake, without offering other functions or services. The updated draft of Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is an improvement over the earlier iteration. It no longer requires sections to be filled in with wallet numbers, transaction IDs, or the time of transactions. Additionally, it no longer asks filers to identify the type of broker they are, such as 'kiosk operator' or 'digital asset payment processor.' The IRS also announced plans to provide rules for decentralized and non-custodial brokers in a different set of regulations later this year. The IRS has invited users to submit comments on the draft form within 30 days.