💲 The IRS Should Offer a Free Tax Reporting Tool to DeFi Users The Internal Revenue Service (IRS) is moving in the direction of providing a free software service to taxpayers, as evidenced by the Direct File pilot program in 13 states, starting in 2024. The project enables taxpayers to file their taxes directly with the IRS with the assistance of software similar to Turbo Tax. For decentralized finance (DeFi), the IRS should use open, traceable and tamper-proof public blockchain data to provide taxpayers with similar free tax assistance concerning their gains/losses and cost-basis reporting information. This would eliminate the need for DeFi protocols to collect personal user data and file 1099 forms with the IRS under a recently proposed crypto-broker rule.