Crypto exchange Coinbase has raised fears about new tax reporting rules in the United States. The exchange says that these rules could create confusion for many ordinary users.
The new rules require exchanges to send form 1099-DA to crypto users and the U.S. tax authority. The goal is to make crypto taxation akin to how stocks and other financial assets are reported.
Coinbase has already started sending these forms to millions of American customers.
However, the company says the rules may create unnecessary work for small investors. Many retail traders make small transactions, sometimes worth only $50 or less, yet they still have to report gains or losses.
Coinbase executives also pointed out that stablecoin transactions must be reported, even though stablecoins usually maintain a fixed value and do not generate profit.
Another issue is gas fees, which are small payments used to process blockchain transactions. These fees can be just a few cents or dollars, but under the current rules, they must still be included in tax reporting.
This year, Coinbase will report only the gross value of crypto sales to the Internal Revenue Service. Investors themselves must calculate their actual profits by adding information about how much they originally paid for the assets.
The company believes this could confuse many people, especially those who are new to investing.
Coinbase says it plans to develop tools that will help customers calculate their taxes more easily in the future.
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