CryptoTrader.Tax Launches New Software For Reporting Crypto Taxes
November 26, 2019
CryptoTrader.Tax Launches New Software For Reporting Crypto Taxes
November 26, 2019

CryptoTrader.Tax, a Missouri-based software maker, has launched a new product facilitating cryptocurrency tax reporting.

On November 25, it has been announced by CryptoTrader.Tax that as the 2019 tax year comes to an end, the software is designed to help firms, certified public accountants and professionals counsel their clients about reporting their taxes from crypto in accordance with the tax guidelines set out by the United States Internal Revenue Service (IRS)

However, the newly released crypto tax professional suite by CryptoTrader.Tax provides a step-by-step process description for importing crypto transactions by clients, as specified on the website. The tool allows tax professionals to auto-generate client tax reports by using transaction data imported into CryptoTrader.Tax, manage multiple clients and operate automated importing.

Since the IRS released its guidelines for crypto-based tax reporting in October 2019, roughly 150 million American taxpayers will have to answer the question on Form 1040 whether they received, sold, sent or exchanged any virtual currency.

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In the report, CryptoTrader.Tax stated that the IRS expects that roughly 12 million tax returns should contain some form of crypto investment.

Likewise, David Kemmerer, the CEO, and Co-founder of CryptoTrader.Tax stated that the new question on 1040 means that all tax professionals not only have to ask their clients whether they had any crypto-related activities this year but also must be ready to handle crypto taxation for clients.

Kemmerer added:

“We’re seeing that thousands of tax professionals are now looking for software tools to help them automate crypto tax reporting for their clients. We are excited to launch our crypto tax professional suite to provide a much-needed solution for these professionals.”

David Kemmerer

So, according to the report, CryptoTrader.Tax already has thousands of users on its platform to date and has processed over $10 billion of crypto transactions over the past two years. The report also notes that the new software is free-to-use for tax professionals.

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It has been analyzed that on October 9, 2019, the IRS issued its guidelines for crypto-based tax reporting. According to the new rules, U.S. persons are subject to U.S. tax in case if they hold, sell or exchange digital currency as well as if they receive digital currency in the form of salary or as a result of a hard fork. If U.S. people acquire digital currency as a gift, there is reportedly no immediate tax. However, the IRS has reportedly not decided whether promotional airdrops should be treated as taxable to date.

So, according to a study by Credit Karma Tax, data released ahead of the close of the preceding tax year indicated that just 0.04% of tax filers were reporting capital gains from crypto investments to the IRS.

Thus, in the meantime, the number of Americans who own crypto reportedly almost doubled in 2019, from 7.95% in 2018 to 14.4%, according to a new survey published in October.

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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with experience of 1.5 years. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.