Leading cryptocurrency tax services provider, Taxbit is assisting users on Uphold, a digital money and cryptocurrency platform, to better track and report their crypto incomes, according to a press release on Tuesday.
Crypto Industry First Suite of Tax Services
The crypto tax firm will provide an industry-first suite of tax services for Uphold users, amid their partnership. This will enable users to track real-time tax liability or loss while trading between digital currencies while gaining a clearer insight into the tax impact of capital asset transactions.
Per the announcement, Uphold recently issued a 1099-B tax form to all residents in the US as the initial phase of the new offering, with the assistance of TaxBit. 1099-B tax forms make it easier for users in the US to prepare for IRS 8949, the tax form that reports taxable cryptocurrency transactions.
In Summer 2019, the United States Internal Revenue Service (IRS) issued numerous audits because it cross-checked 1099-K tax forms against the income section of a taxpayer’s return, thereby increasing the need for better tax reporting. Even the CEO of Uphold, J.P. Thieriot, was personally audited by the IRS.
“I got the (scary) Letter from the IRS, reaching back five years, across various exchanges. TaxBit solved my issue with unbelievable speed and competence. We are excited to be working with them,” said Thieriot.
Form 1099-B helps taxpayers to prepare for their crypto transactions tax form (Form 8949) without having any confusion and audits due to the 1099-K tax forms, TaxBit said. It is “the standard when it comes to reporting transactions involving capital assets.”
Aside from issuing the Form 1099-B, Uphold said they would be introducing a tax center suites within users’ accounts to help users to report their crypto taxes easily.
TaxBit Assists Crypto Users With Tax Regulations
Earlier this year, Coinfomania reported that TaxBit raised $5 million in a seed funding round in an effort to help crypto investors in the US to comply with the country’s tax regulations. This came after the IRS asked residents last year to report any profit or loss the made in crypto-related transactions.
Source: Coinfo mania