Payments and cryptocurrency platform Crypto.com has simplified cryptocurrency tax reporting for its users through a new partnership with three tax providers.
On March 24, Crypto.com announced the collaboration with crypto tax calculator CoinTracker, crypto tax software platform TokenTax and crypto tax reporting firm CryptoTrader.Tax.
Now, Crypto.com’s users can import their historical crypto transactions from the platform into one of the aforementioned tax reporting platforms to generate necessary tax reports. Users then can pass the forms along to a tax professional or transfer to tax filing software for further processing.
A response to crypto taxation around the world
The new option comes in response to growing crypto adoption, as well as new requirements from regulators around the world making cryptocurrency owners report on their holdings. Thus, last summer, the United States Internal Revenue Service (IRS) began asking digital currency holders to amend their tax filings, while compelling others to pay back taxes and interest and penalties.
At the time, the IRS said that it was focused “on enforcing the law and helping taxpayers fully understand and meet their obligations.” Last October, the IRS issued its guidelines for crypto-based tax reporting, requiring roughly 150 million American taxpayers to answer the question whether they received, sold, sent or exchanged any virtual currency.
At the same time, most members of the European Union have a radically different approach to tax codes to govern their respective crypto sectors. For example, in Germany, Bitcoin (BTC) is not subject to any capital gains tax, thereby allowing investors to avoid paying significant levies on their holdings if the value of their BTC appreciates.