PANews reported on March 5 that according to The Block, the U.S. Internal Revenue Service (IRS) issued a new proposal to allow crypto brokers such as Coinbase and Kraken to provide users with tax forms such as 1099-DA only electronically, eliminating the need to provide paper options. Under the new rules, which will take effect this year, crypto brokers will be required to report the total transaction amount and cost basis to the IRS for digital asset sales, and the IRS will automatically obtain user profit and loss data to strengthen tax compliance. The proposal states that brokers can refuse to provide paper tax forms to clients who do not consent to electronic collection and can terminate business relationships with clients who refuse electronic service. The proposal is subject to public comment and final approval.