As digital currencies become mainstream, crypto tax software are evolving to offer more features. Taxbit, a crypto tax firm backed by Winklevoss twins, has joined hands with trading platform Uphold to offer a comprehensive tax suite aimed specifically at the crypto industry.
Cryptocurrency taxes can be quite complicated, considering that regulations are changed often, and there are still many grey aspects involved. The upcoming crypto tax software from Taxbit and Uphold aims to resolve tax dilemma since it includes extensive support for U.S. clients. It features an automatic IRS form that helps manage the crypto taxes.
Feature-laden Taxbit and Uphold crypto tax software to launch soon
Tax season can be tough, especially if you are into crypto. There’s a dearth of crypto tax software globally. The collaboration between TaxBit and Uphold wants to fill this void with their new suite. Austin Woodward, chief executive officer of TaxBit, that their software is up-to-date with the latest IRS regulations about cryptocurrencies. Still, the IRS needs to bring in more clarity when it comes to digital currency taxes.
Cameron and Tyler Winklevoss are veteran crypto enthusiasts for whom crypto is an indispensable asset. Also known as Winklevoss twins, their TaxBit crypto accounting firm has been at the forefront of offering virtual currency tax solutions. TaxBit is known as the ‘Turbo Tax for Crypto,’ and it received a seed funding of $5 million from Winklevoss Capital. They said that the U.S. users would get access to comprehensive crypto tax software that brings IRS 1099-B tax form integration and real-time crypto tax monitoring with extensive transaction details.
Crypto tax software with integrated IRS tax forms
The TaxBit and Uphold collaboration comes amidst the confusion created by 1099-K forms. Recently, the IRS sent warning letters to cryptocurrency owners and apprised them of penalties in case they fail to comply with tax norms. The form has created confusion in the U.S. crypto industry and often leads to tax accusations against crypto investors. The 1099-K form only mentions total gains and losses, which can cause anomalies in the final tax computation.
Interestingly, IRS form 8949 is a better option when it comes to submitting crypto tax information. Woodward says that 8949 offers better digital asset data submission allowing taxpayers to comply with IRS guidelines. The in-app feature makes it easier to report tax-related information through an automatic form-filling option.
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