The IRS could receive as many as eight billion tax forms tied to cryptocurrency transactions this year, with many reporting routine, low-dollar activity that generate little to no revenue. Instead of focusing on tax compliance and enforcement, the agency risks being buried in paperwork.

The IRS is in the midst of a 25% staff reduction, so it’s precisely the wrong moment to burden remaining employees with additional, ineffectual inbound reporting.

But this looming administrative nightmare is avoidable. Targeted, bipartisan crypto tax reform needs to reflect the technological reality of the digital asset economy, and Congress can deliver a win for taxpayers, reduce unnecessary and burdensome reporting, and allow the IRS to focus on…