Coinbase states the new IRS reporting system for digital assets is over-reporting gains from stablecoin transactions and very small gas fees, prompting calls for correction.
Millions of U.S. cryptocurrency holders have received IRS 1099-DA forms requiring them to report digital asset gains, including transactions involving stablecoins and minor gas fees reportedly as low as $0.50. Coinbase has stated that the current IRS system appears to over-report these activities, potentially misrepresenting taxable amounts. The issue underscores ongoing challenges in accurately regulating the crypto market, particularly as digital asset reporting rules expand under federal oversight.