Verady and Thomson Reuters co-develop blockchain tax return tool

Verady and Thomson Reuters co develop blockchain tax return tool

A blockchain tax return tool is a reality now. Verady and Thomson Reuters have co-developed the tool to track crypto transactions. Added to the conventional GoSystem TaxRS, the auxiliary tool will accomplish tax return purpose and also help with digital asset organisation for the accountancy professionals.

As crypto regulation becomes a reality, such a blockchain tax return tool will be a game-changer in the tax and accountancy realm. Professional accountants can certainly take a breather when it comes to tax returns for crypto and digital assets.

Blockchain tax return tool by Verady and Thomson Reuters

Media giant Thomson Reuters partnered with crypto accounting firm Verady to create new software that will help streamline classification, organisation and accountancy of digital assets. The auxiliary tool is integrated into the traditional tax bundle GoSystem TaxRS. The tool has been designed to keep an accurate track of the cryptocurrency trades and report the same on the tax returns.

Time is ripe for a dedicated Blockchain tax return tool

With blockchain and cryptocurrency trading reaching all-time highs, it was about time someone developed a dedicated tax return tool based on blockchain. As per the official announcement, the need for such a solution was overwhelming especially in the United States. Recently, the IRS reported that close to ten thousand (10K) taxpayers have discrepancies in their cryptocurrency transaction reporting.

IRS added a ‘Question – 0’ to their IRS 1040, which asks where the taxpayer undertakes any virtual currency-related trading or transactions. This represents the importance given by tax authorities to the rising graph of the cryptocurrencies.

The new blockchain tax return tool can account for digital assets acquired through straight purchase, exchange trading, forks or service work. However, Verady says that since cryptocurrencies are decentralised and widely spread, their accurate monitoring becomes difficult. Still, the tool gathers a substantial amount of crypto data helping tax authorities accurately track and report a user’s cryptocurrency transactions. As virtual currencies become mainstream, both accounting firms and taxpayers were looking for a reliable blockchain tax return software.

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Gurpreet Thind

Written by Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.