Ernst & Younger (EY) has launched a brand new software that helps U.S. cryptocurrency merchants calculate and file their taxes with ease.
The EY Cryptoprep app, a Software program as a Service (SaaS) web-based crypto tax engine, helps customers calculate crypto-related beneficial properties and losses that need to be reported on Kind 8949, a type used to report gross sales and exchanges of capital belongings.
In keeping with a June 18 statement from EY, one of many 4 largest accounting corporations on the planet, the engine provides step-by-step steerage by means of the crypto tax course of. Customers of the appliance, which helps main digital belongings, can join it to numerous exchanges to gather information about all their transactions.
EY Cryptoprep will then combination and reconcile the info earlier than making use of the related tax guidelines to provide an account of crypto capital beneficial properties or losses. Afterward, a accomplished Kind 8949 for all relevant years is issued. The app additionally permits customers to submit amended returns for previous tax liabilities, not solely the present yr.
Ernst & Younger vice-chairperson for tax companies Marna Ricker claimed the agency is responding to rising demand.
“Our purchasers more and more maintain and commerce crypto belongings, creating the necessity for an modern resolution to deal with the evolving complexity round submitting crypto taxes. The EY Foundry, our inner company venturing unit, created EY Cryptoprep to modernize the crypto tax accounting course of,” mentioned Ricker.
This isn’t the primary providing from EY concentrating on digital monetary belongings. The agency unveiled an auditing software program for cryptocurrencies referred to as EY Blockchain in April 2018. EY Crypto-Asset Accounting and Tax, a software that facilitates accounting and tax calculations for crypto transactions, focused at each institutional and retail traders, was launched final yr.
“EY Cryptoprep expands our modern portfolio of profitable new digital companies,” mentioned Chirag Patel, Ernst & Younger foundry chief, within the assertion.
The Inside Income Service deadline for tax returns is July 15, 2020.
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Picture Credit: Shutterstock, Pixabay, Wiki Commons, EY
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