As cryptocurrency increases in use and finds its place within the global financial system, one of the adjustments that have been needed to be made by consumers is reporting of tax. In the initial days of cryptocurrency being used, there was no tax code set up was used and many were unable to be taxed or simply did not pay tax. As cryptocurrency has expanded its reach, more and more countries are developing comprehensive tax code on how payments of tax regarding cryptocurrency will be calculated and paid and as this happens, more and more services are springing up to facilitate this.
One of the latest of these tools was announced on November 25, 2019, by CryptoTrader.Tax who have developed a new software through which accountants, firms and so on can advise their clients on reporting their crypto-related tax in order to remain in line with the guidelines set by the Internal Revenue Service.
Death and Taxes
The new software comes with a step-by-step guide for how to import crypto transactions made by clients and also helps in auto-generating crypto tax reports based on the data that is important as well as enables the management of multiple clients accounts. There is certainly going to be a need for the service as ever since the IRS amended its 1040 form, roughly 150 million people will have to answer the new question of whether they have sent, received or traded in any form of cryptocurrency. According to the report accompanying the new software, it is estimated at about 12 million people will have to report some form of cryptocurrency-related tax and this is a brand new market that will need software such as this.
This new development does not only affect individuals themselves as David Kemmerer, CEO and co-founder CryptoTrader.Tax stated as tax professionals will also need to begin asking the clients if they have carried out any-crypto related transactions and will then have to possess knowledge of helping them file these taxes and he also stated that this new development comes on the heels of increasing demand from tax professionals.
“We’re seeing that thousands of tax professionals are now looking for software tools to help them automate crypto tax reporting for their clients. We are excited to launch our crypto tax professional suite to provide a much needed solution for these professionals,” he said.