The Internal Revenue Service released an early draft of a tax form for brokers and exchanges to report certain sales of digital assets, giving insight into how the IRS may categorize brokers. 

In the Form 1099-DA draft posted on Thursday, the IRS lists broker types: kiosk operator, digital asset payment processor, hosted wallet provider, unhosted wallet provider and others. The form also asks for a "digital asset address" and whether the asset is a "noncovered security." 

The form stems from rules proposed last year that say crypto brokers would be treated similarly to brokers for more traditional investments such as stocks and bonds. Currently, taxpayers owe tax on gains and can deduct losses on digital assets when sold, but the Treasury said it is hard for taxpayers to …