For years, the IRS has been scratching its head over how to tax cryptocurrency. Now, they're dipping their toes into the digital waters with a new form: the 1099-DA. But this dive isn't exactly graceful, and it's causing ripples in the crypto community.

This form, expected for use in 2025, aims to shine a light on crypto transactions by requiring brokers (think anyone from exchange platforms to digital wallet providers) to report details like token codes, wallet addresses, and even blockchain transaction locations. The goal? To catch those who might be hiding their crypto gains from Uncle Sam.

The crypto community isn't exactly thrilled. Some experts argue the form misunderstands how decentralized finance works, where there might not even be a broker to report the transaction. Others worry about the burden it places on brokers, who might be flooded with paperwork.

But the biggest concern? Privacy. Many see this as a step towards the government monitoring every crypto purchase, even a simple cup of coffee.

Tax experts also see challenges. How will the IRS track cost basis (basically, the purchase price) across different platforms, especially for self-transfers where it's unclear if a taxable event even occurred? And what about those using foreign exchanges? The form won't catch them directly, but the IRS might still track those assets if they eventually move to a U.S. exchange.

This new form is just the opening act in the ongoing drama of crypto taxation. While it will likely improve tax collection, it also raises questions about privacy, practicality, and the ever-evolving world of digital assets.