Crypto.com, a payments and crypto platform, has announced that it has simplified crypto tax reporting for its users. The company has managed to streamline the process through a new partnership with three tax providers.
Crypto.com announced on March 24 that it has collaborated with crypto tax software platform TokenTax, crypto tax calculator CoinTracker, and crypto tax reporting firm CryptoTrader.Tax.
Currently, Crypto.com’s users can import most of their historical crypto transactions from the platform and into one of the above-mentioned tax reporting platforms. Through the imports, Crypto.com can generate all the necessary tax reports.
Also, users can pass these forms along to a tax professional or transfer to tax filing software where further processing is done.
A Solution to crypto taxation worldwide
The new option comes as a response to the growing crypto adoption and the new requirements from the regulators throughout the world, compelling crypto owners to report on their holdings. Last summer, the US Internal Revenue Service (IRS) started urging all the digital currency holders to amend their tax filings. Moreover, they compelled others to pay back taxes and interest penalties.
At that time, the IRS confirmed that it was focused on enforcing the new law and ensuring that the taxpayers fully understand and meet all their obligations. The IRS issued its in-depth guidelines for crypto-based tax reporting last October. The guidelines needed almost 150 million American taxpayers to answer the question of whether they sold, received, sent, or exchanged any virtual currency.
Simultaneously, most member states of the European Union have a different approach to the tax codes that govern their respective crypto industries. In Germany, for instance, Bitcoin is not subject to any capital gains tax. Hence, investors can avoid paying large amounts of levies on their holdings in the case that the value of their BTC appreciates.