IRS proposes allowing crypto exchanges to issue tax forms electronically

The U.S. Internal Revenue Service (IRS) has proposed a plan to grant crypto exchanges like Coinbase and Kraken the authority to issue tax documents electronically, The Block reported. Previously, exchanges were required to offer users the option to receive paper copies, but this proposal would remove that obligation, allowing for electronic-only issuance. This change is in line with the cryptocurrency transaction reporting system implemented this year, which requires brokers, including exchanges, to report gross proceeds and cost basis from cryptocurrency sales to the IRS. The agency plans to use this data for taxation. The proposal will be discussed for implementation following a public comment period.