IRS Extends Comment Period for Proposed Crypto Tax Rules

United States Internal Revenue Service Prolongs Comment Period

The United States Internal Revenue Service (IRS) prolongs the comment period for proposed crypto tax reporting rules until November 13, 2023. These rules, known as "Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realised and Basis for Digital Asset Transactions," These rules aim to streamline tax reporting and reduce evasion by requiring brokers to use a new reporting form, Form 1099-DA. The rules are set to take effect in 2026, affecting transactions in 2025. Although the crypto community has criticised the rules, with leaders like Miller Whitehouse-Levine, DeFi Education Fund CEO calling them "confusing" and "misguided." US Senators, including Elizabeth Warren and Bernie Sanders, have requested swift discharge of crypto tax reporting requirements.