Coinbase says new U.S. crypto tax-reporting rules are cluttered, confusing

Coinbase said new U.S. tax-reporting requirements are overly onerous for many crypto holders and add unnecessary clutter to the tax system. The IRS’s 1099-DA form for reporting digital asset gains, the company’s tax team warned, creates a burden of over-reporting by requiring details on stablecoin transactions—whose value by definition doesn't change—and tiny network fees known as gas.

The Nasdaq-listed exchange is sending millions of American crypto holders the new 1099-DA forms meant to align crypto reporting with other parts of finance. The new rules require trading platforms to share customers’ digital asset transaction details with the IRS, with customers copied in on the form so they can reconcile gains and losses voluntarily.

This year Coinbase will provide the IRS only with gross proceeds of digital asset sales, not net value or cost basis, leaving traders to supply acquisition costs and actual tax basis. Coinbase plans to begin calculating cost basis on behalf of customers starting next tax year.

United States

coinbase, 1099-da, irs, crypto tax, digital assets, stablecoins, gas fees, gross proceeds, cost basis, nasdaq