The U.S. Treasury and IRS have proposed making electronic delivery the default method for sending crypto tax forms to customers, aiming to reduce compliance burdens for exchanges. The move comes as lawmakers like Representative Mike Carey push for clarity on taxing crypto staking rewards, which currently face potential double taxation under IRS guidelines.
The U.S. Treasury and the Internal Revenue Service (IRS) have proposed that crypto brokers use default electronic delivery for customer tax forms. This initiative seeks to overhaul the crypto tax reporting regime and reduce compliance burdens for platforms.
Currently, brokers must provide paper forms via physical mail to customers not signed up for email. For large exchanges with over a million users, this represents a significant annual cost and operational challenge. The new proposal would eliminate paper copies entirely, with stakeholders having 60 days to provide feedback before final guidance.
Separately, unresolved issues like crypto staking taxation persist. The IRS currently treats staking rewards as taxable income upon receipt, and also applies capital gains tax if the asset is later sold at a profit. U.S. lawmaker Mike Carey has been pushing for clarity and relief, stating in a hearing that “America needs to be the crypto capital of the world.”
Frank Bisignano, the IRS’s CEO, responded that he would brief the legislator on ongoing reviews regarding staking tax treatment. Critics argue the current double taxation risk could push investors to jurisdictions with more lenient tax regimes.
