Consensys has submitted a letter to the US Internal Revenue Service (IRS) urging for a postponement of the proposed tax regulation that would require brokers and exchanges to report specific cryptocurrency sales.
The letter expressed concern over the burden placed on potential brokers, particularly for entities that do not typically have reporting obligations.
The IRS had released a preliminary version of Form 1099-DA in April as part of the proposed tax reporting rules, which equate crypto brokers to traditional brokers for products like stocks and bonds.
As per the proposed rules, any entity defined as a broker would need to file 1099-DA forms for customers in the case of specific crypto transactions.
The draft form includes a list of types of brokers such as kiosk operators, digital asset payment processors, hosted and unhosted wallet providers, and others.
However, Consensys, the creator of the MetaMask wallet, criticized the draft form for being overly broad and lacking clear instructions, potentially resulting in multiple parties reporting the same transaction.
