IRS Set to Kill Pseudonymity in Crypto? Tax Form Proposal Raises Alarms
Summary
The IRS released a draft Form 1099-DA, suggesting that American DeFi users may need to report self-custodial wallet addresses. The form requires filers to specify the type of broker involved in crypto transactions, including "Unhosted Wallet Providers." This move could compromise user privacy and pseudonymity. Despite objections from crypto lobbying groups, the IRS seems determined to proceed. Legal experts anticipate potential legal challenges to the IRS's classification of DeFi users as brokers.
