EY CryptoPrep is a fully automated, web-based Software as a Service (SaaS) product to assist clients with U.S. tax filings. The app takes data from numerous exchanges and major cryptocurrencies while automatically applies relevant tax rules and completes Form 8949. Clients can choose to use the program themselves or have it as part of a managed service.
EY America’s Vice Chair of Tax Services Marna Ricker explained:
“Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes.”
This is not the first offering from EY targeting digital financial assets. The firm unveiled an auditing software for cryptocurrencies called EY Blockchain in April 2018. EY Crypto-Asset Accounting and Tax, a tool that facilitates accounting and tax calculations for crypto transactions, targeted at both institutional and retail investors, was launched last year.
Cryptocurrencies have caused confusion and difficulty for many users due to stringent recording requirements for traders. Moreover, there is prevalent of somewhat opaque tax regulations in certain cases. The app arrives just in time as the IRS looks as if it’ll be cracking down on non-compliance in cryptocurrency tax.
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The source news release has been issued by Ernst & Young LLP, a member firm of EY serving clients in the US.