Oct. 15, 2023
CC:PA:LPD:PR (REG–122793–19) Room 5203 Internal Revenue Service P.O. Box 7604 Ben Franklin Station Washington, DC 20044 Subject: Comments on Proposed Regulations - Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions Dear Internal Revenue Service (IRS) and Treasury Department, I would like to provide my comments on the proposed regulations discussed in the PDF document titled "Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions." Specifically, I would like to focus on two key concerns: privacy and poorly defined terms. Privacy is a paramount concern when it comes to financial transactions and the disclosure of sensitive personal information. While I understand the need for information reporting for certain digital asset sales and exchanges, I am concerned about the potential risks associated with allowing multiple third parties to have access to my financial data and social security number. It is important to ensure that suitable measures are put in place to guarantee the privacy and safety of individuals' personal information in accordance with applicable data protection laws and regulations. Another area of concern is the use of poorly defined terms in the proposed regulations. Terms such as "platform," which are susceptible to multiple interpretations, may lead to confusion and inconsistencies in the application and enforcement of the proposed rules. Additionally, the technical definition of terms like "wallet," "smart contracts," and "validator" may not align with the definitions provided in the document, creating further ambiguity and potential misinterpretation. It is crucial to establish clear and concise definitions for these terms to promote better understanding and consistent application of the proposed regulations. In conclusion, I urge the IRS and Treasury Department to address these concerns surrounding privacy and the use of poorly defined terms in the proposed regulations. By ensuring appropriate privacy protections and providing precise definitions, the proposed rules can promote transparency and confidence among users of digital assets while maintaining compliance with relevant laws and regulations. Thank you for considering my comments. Sincerely,