Gemini, the American cryptocurrency exchange, has partnered with TaxBit, the tax compliance firm, to help its customers report their crypto taxes with TaxBit’s Tax Center Suite solution.
It has been reported that Tyler Winklevoss, the CEO of Gemini, said that TaxBit’s software will help reduce the “pain point of crypto tax” by enabling users to track the real-time tax impact on their crypto trades on Gemini.
However, the tool will also allow customers to potentially increase their tax refunds and lower their tax liability, providing trade alerts when tax-saving opportunities are available.
A spokesperson at Gemini said that TaxBit’s Tax Center Suite solution is the first crypto tax-related tool that Gemini has ever deployed.
The representative said that the company expects to integrate TaxBit’s solution in the first half of 2021 or sooner, as it anticipates definitive guidance from the Internal Revenue Service on how crypto should be reported.
As per the report, once the software is fully implemented on Gemini, the exchange’s customers in the United States will be able to download a tax report in a format required by the IRS.
It has been analyzed that the Winklevoss brothers invested in TaxBit earlier this year. In January 2020, their family office Winklevoss Capital participated in a $5 million seed funding round for TaxBit.
The spokesperson said that Gemini also has had a referral relationship with TaxBit since the 2019 tax reporting period.
According to its website, TaxBit’s platform supports over 2,000 currencies.
Thus, Gemini will soon integrate a new tool enabling users to automate their crypto tax reporting.