Coinbase (COIN) says new U.S. tax-reporting rules for crypto are cluttered, confusing

Coinbase's tax experts criticized the new IRS 1099-DA tax form requirements for digital assets, arguing they introduce unnecessary clutter and administrative burden, particularly for retail customers engaging in small transactions. The rules aim to align crypto reporting with traditional finance, but they mandate reporting transactions involving stablecoins, whose value does not change, and tiny gas fees, which Coinbase argues do not constitute taxable income.

Furthermore, for the current tax year, Coinbase is only providing the IRS with gross proceeds from digital asset sales, leaving the crucial cost basis information to the trader. This forces customers, especially those new to asset reporting, to reconcile missing data, leading to confusion. Coinbase plans to start calculating cost basis next tax year to ease this burden.

Coinbase emphasizes the need to focus reporting efforts where real income exists, rather than tracking negligible amounts like gas fees or stablecoin transactions, which currently lack blanket exemptions, thereby complicating compliance.

(Source：CoinDesk)