Free Crypto Tax Forms Via The TaxBit Network• January 11, 2022 9:55 pm • Comments
Tax compliance in the crypto industry has always been a gray area as it can be hard to accurately calculate income with the various crypto exchanges and services that exist today.
Luckily for everyone, the TaxBit Network is a unicorn startup that focuses on providing the necessary tax reporting software and data for all users within the network.
This means that any users of any exchange or financial services institution that is within this TaxBit Network will automatically have all the tax reporting data that they need to fill out their tax forms without the purchase of any additional services.
The service is provided for free and many major companies have already joined this network including companies like Binance, PayPal, Coinbase, Gemini, Venmo, and more.
— Forbes (@Forbes) January 11, 2022
This new initiative aims to help democratize tax reporting within the crypto industry and will greatly help accelerate the adoption for crypto by making tax reporting simple and free.
The tax reporting services provided by TaxBit is not only limited to companies that are within the network however.
It is still possible for users of out of network platforms to utilize the services, but the company will charge an extra free in order to utilize it’s tax reporting services.
This recent change signifies a large shift within the industry and it has originally been very complex and expensive for users to stay tax compliant due to the lack of regulation and available tools.
The lack of tools often led to users having to hire accountants or purchase expensive tax software where there was very little direction on how to do the taxes correctly.
The reception of the crypto industry has also been very positive as many companies want to stay compliant with the new law regulations.
Austin Woodward, co-founder and CEO of TaxBit, told CoinDesk he hopes to make the software more accessible – both in terms of cost and ease of filing – and thereby democratize and demystify the crypto tax process.
Woodward told CoinDesk the response from the crypto industry has been positive, and he expects more companies to join the TaxBit Network before the end of tax season in April.
“The crypto companies want to be in good graces with regulators. They want to help their users report their taxes,” Woodward said. “This isn’t something that has been due to a lack of desire, right? It’s a technological hurdle, and it’s a cost hurdle.”
Participating crypto CEOs seem to agree with Woodward’s assessment.
“Compliance is a key pillar at Gemini and proactively providing our investors with access to tax reporting tools helps our clients stay on top of their cryptocurrency tax obligations while regulation continues to evolve,” Gemini CEO Tyler Winklevoss wrote in a press release.
With more and more companies in compliance with regulations, this will help remove one of the major obstacles that the industry has been facing and will encourage more mainstream adoption.
Users within the TaxBit network will be able to start accessing the tax forms starting next week for free and the company reports that it will continue to onboard new members within the network in an effort to provide tax compliance services for all companies.
Crypto tax compliance firm TaxBit is working to unite major industry companies like Coinbase and https://t.co/Ueqt4gUeQa within one network to enable free 2021 tax forms for users.
— Hopium (@Hopiumai) January 12, 2022
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