Core Insights - Starting in 2025, U.S. crypto brokers will be required to issue Form 1099-DA, reporting gross proceeds from crypto transactions to the IRS and users, without including the original purchase price or cost basis [1][2] Group 1: Tax Reporting Changes - The new Form 1099-DA will only report gross proceeds, making it the user's responsibility to track their original cost basis for capital gains tax calculations [2] - Full cost basis reporting by brokers like Coinbase is expected to begin in the tax year following the first reporting year, with complete implementation scheduled for 2027 [3] Group 2: Complications and Criticism - Coinbase executives, including VP of tax Lawrence Zlatkin, have expressed concerns about the complexity of the new tax rules for crypto users, particularly regarding the reporting of small transactions and stablecoin holdings [4][5] - Zlatkin criticized the requirement to report transactions involving stablecoins and gas fees, arguing that these do not generate income and should be exempt from reporting [5][6] Group 3: System Limitations - Current systems used by crypto brokers lack the sophistication to handle transfer statements and cost basis transfers effectively, which complicates the reporting process for users [7]