Coinbase points out that the US IRS crypto tax form is too cumbersome and may impose an additional burden on users.

PANews reported on March 8th that, according to Interactivecrypto, Coinbase is currently sending out 1099-DA digital asset tax return forms to millions of US users. This system requires exchanges to report users' digital asset transactions to the IRS and provide users with copies so they can self-report profits and losses. Coinbase stated that this year's reports will only report gross proceeds from digital asset sales to the IRS, without providing a cost basis. Users will need to calculate their true taxable income themselves, which may confuse some investors. The company plans to start calculating the cost basis for users from the next tax year onwards to simplify the reporting process.

Coinbase also pointed out that the IRS's 1099-DA rule is overly cumbersome and may impose unnecessary administrative burdens on a large number of cryptocurrency holders. Lawrence Zlatkin, Coinbase's VP of Tax, stated that the new rule requires reporting small transactions such as stablecoin transactions and network gas fees. Since stablecoin prices are generally stable and gas fees are typically only a few dollars or less, reporting such information could lead to "over-reporting," further complicating the tax system.