Cryptocurrencies
Crypto.com Partnering with Three Crypto Tax Providers
Just because Tax Day has officially been moved to July 15th doesn’t mean that individuals don’t need to be thinking about their 2019 returns. Moreover, with the Internal Revenue Service (IRS) taking an enhanced interest in cryptocurrency capital gains in recent months, it would behoove crypto holders to make sure they’re in compliance with the agency’s guidelines and properly filing their returns. With that in mind, Crypto.com has just announced an effort to help make this process a bit simpler for their users and help them stay on the right side of tax law.
This week Crypto.com announced that it would be working with three tax service providers that specialize in cryptocurrencies: CoinTracker, CryptoTrader.Tax, and Token Tax. As part of the partnerships, all three platforms will provide the ability for users to upload their historical crypto transaction data via the Crypto.com app. In turn customers will be able to easily generate the necessary tax documents, which can then be brought to a tax professional or uploaded to some self-service software. What’s more, Crypto.com users can also get a discount on these three services.
Notably, as mentioned, this partnership comes at a time when the IRS has been cracking down on those who fail to report their crypto earnings as part of their tax return. Last year the agency even sent out letters to approximately 10,000 taxpayers warning of criminal tax indictments if they didn’t make amends. Incidentally, these compliance issues also played a role in the startup TaxBit raising $5 million in a seed round earlier this year.
Commenting on the four-way partnership, Crypto.com co-founder and CEO Kris Marszalek said, “You can’t escape death and taxes, might as well attempt to make the latter as seamless as possible. We’re thrilled to partner with leading players in this space to simplify the reporting process for Crypto.com users.” Each of the three tax partners offered a statement as well, with CoinTracker COO Chandan Lodha saying, “We’re extremely excited to be partnering with Crypto.com, a market leading global cryptocurrency platform. By extending CoinTracker’s integrations with Crypto.com, we are one step closer to making cryptocurrency taxes and portfolio tracking simple and accessible for everyone.” Meanwhile Zac McClure, CEO of TokenTax, stated, “You can now seamlessly use the market leader in special tax situations, TokenTax.co to get started on taxes for your Crypto.com transactions today,” and CryptoTrader.Tax CEO David Kemmerer remarked, “We are excited to be teaming up with the Crypto.com team to bring an easy, automated cryptocurrency tax reporting experience to their users. I think this partnership demonstrates Crypto.com’s leadership in this industry. The whole team is committed to making every aspect of cryptocurrency as easy as possible for their users, taxes included.”
Although tax law can be confusing and some of the IRS’s previous guidelines have done little to clear up some major questions crypto holders had, thankfully things are getting easier. Of course this means that taxpayers with cryptocurrencies now have little excuse for not following the rules. Hopefully the influx in companies like CoinTracker, CryptoTrader.Tax, and Token Tax, as well as their partnerships with sites like Crypto.com, will continue to ease the pain taxpayers feel, making them and the IRS happy.
