a16z crypto submitted feedback on the draft of the IRS 1099-DA form

ChainCatcher message, a16z crypto recently commented on the IRS's draft of the 1099-DA form, with the following key points:

• Each digital asset transaction requires multiple brokers to submit the 1099-DA form, resulting in unnecessary duplicate information reporting and placing an unreasonable burden on filers;

• The requirement for brokers to report wallet addresses is unnecessary and puts sensitive taxpayer information at significant risk;

• The cost of providing the information required by the 1099-DA form is too high, and in some cases, it is even unattainable;

• The final regulations 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 in the 1099-DA form;

• The IRS should not require the submission of the 1099-DA form when disposing of fiat-backed stablecoins and most NFTs (non-fungible tokens);

• The requirement to submit the 1099-DA form should include a minimum threshold, allowing brokers to aggregate transactions for reporting purposes.