Crypto.com, the global cryptocurrency platform announced its alliance with three leading tax preparation providers. Effectively, these partnerships will simplify cryptocurrency tax reporting for Crypto.com users.
The platform is quite popular for encompassing a range of products to support the crypto ecosystem. And this is a welcome addition made on community demand.
Teaming up with Cointracker, CryptoTrader.Tax, and Token Tax, Crypto.Com aims to help traders stay on the right side of the law. This alliance will aid in crypto tax reporting compliance as seamless as possible.
As regulators like Internal Revenue Service (IRS) continue to invest efforts in cryptocurrency tax reporting and investigation for 2020, crypto traders can no longer skip reporting their holdings.
According to a recent update by the IRS, crypto tax reporting would be their focal point this year. Here is what the mandate states:
“The last in 2019, the IRS sent educational letters to more than 10,000 taxpayers who may have failed to properly report virtual currency transactions. The letters explained the tax obligations associated with virtual currency and describe how taxpayers can correct past filing and reporting errors. The virtual currency will remain an important focal point for the IRS in 2020. Our enforcement efforts are continually evolving to support the extensive efforts of compliant taxpayers.”
Crypto.com app is currently available to users in 49 states and US territories. These territories include Puerto Rico, American Samoa, Northern Mariana Islands, Guam, and the Virgin Islands.
How easy is it to report crypto tax now?
As a result of this partnership, the Crypto.com users can now import all the historical crypto trading data into any of the three platforms. The users would, however, need to import the data in CSV format.
Once the data is imported, the platforms are offering a one-click facility for the users to generate their tax reports. Additionally, the support provided by these crypto tax preparers for report generation of a number of jurisdictions is going to solve tax worries for many users.
Also, the tax report thus created can be imported into several of the prevalent tax filing software. Else, the users can take the help of tax professionals to file the taxes.
Crypto.com CEO and Co-Founder, Kris Marszalek, stated, “You can’t escape death and taxes, might as well attempt to make the latter as seamless as possible.”
He also expressed the excitement felt by his company to get into partnership with the leading players in this space. He was sure that the reporting process for Crypto.com users would become easier as a result.
Cointracker, CryptoTrader.Tax and Token Tax were equally excited about the alliance. They were vociferous about Crypto.com’s contribution to making every aspect of cryptocurrency easy for its users and concluded that the new partnership would go a long way towards making crypto tax reporting a seamless experience.
Last week, we covered Crypto.com’s first-ever Virtual AMA. Kris did mention tax filling support soon, but it comes as a pleasant surprise to see that happen so soon.