IRS proposes rule allowing crypto exchanges to deliver tax forms only electronically

The Internal Revenue Service (IRS) has proposed a new rule that would permit custodial crypto brokers, such as Coinbase and Kraken, to deliver tax forms like Form 1099-DA solely through electronic channels, eliminating the traditional requirement for paper statements. Under this proposal, exchanges could make accepting electronic delivery a condition for account maintenance and could terminate relationships with customers who refuse digital tax reporting. This change aligns with the IRS's broader expansion of oversight for digital asset transactions, mandated by the Infrastructure Investment and Jobs Act of 2021. Furthermore, beginning in 2025, brokers must report gross proceeds from customer trades on the new Form 1099-DA, and additional requirements this year will mandate the submission of cost basis data to help the IRS track crypto trading gains and losses.

(Source：Crypto Briefing)