IRS proposes letting crypto exchanges like Coinbase require electronic delivery of tax forms

The Internal Revenue Service (IRS) has issued a proposal that would permit cryptocurrency brokers, such as Coinbase and Kraken, to require customers to receive tax reporting forms electronically. This change would eliminate the previous requirement for brokers to offer clients the option of receiving paper copies of forms, like Form 1099-DA, which reports gross proceeds from digital asset trades. This proposal coincides with the implementation of a new system requiring brokers to report both gross proceeds and the cost basis of digital asset sales to the IRS starting this year, providing the agency with detailed gain/loss data to increase compliance. The IRS stated that under the proposed regulations, brokers would generally not need to furnish paper 1099-DA statements unless a customer consents to electronic delivery, and brokers could terminate business with clients who refuse electronic delivery. The rule change is currently subject to public commentary.

(Source：The Block)