a16z submits feedback on IRS cryptocurrency tax proposal

a16z commented on the draft 1099-DA form of the US Internal Revenue Service (IRS). The summary of a16z's comments and opinions are as follows:

· Every digital asset transaction requires multiple brokers to submit the 1099-DA form, resulting in unnecessary duplicate information reporting and unreasonable burdens on filers.

· Requiring brokers to report wallet addresses is unnecessary and puts sensitive taxpayer information at significant risk.

· The cost of providing the information required by the 1099-DA form is too high and, in some cases, even impossible.

· The final regulations should delay or "gradually implement" the effective date of digital asset information reporting requirements.

· Non-custodial wallets and digital asset payment processors should be removed from the "broker" category listed in the 1099-DA form.

· The IRS should not require the submission of the 1099-DA form when disposing of stablecoins backed by fiat and most non-exchangeable tokens.

· The requirement to submit the 1099-DA form should include a minimum threshold that allows brokers to aggregate transactions for reporting purposes.