TaxBit Network to Offer Free Crypto Tax Forms

  • Users of participating platforms will be able to use the TaxBit ecosystem to generate their transaction history data for free when filing taxes.
  • More than 500 platforms have decided to participate in the TaxBit Network, amongst which are PayPal, Binance.US, Coinbase, FTX.US, Gemini, and more.
taxes

Shutterstock

TaxBit, a Utah-based crypto tax firm, is attempting to lower the cost of crypto tax reporting through its TaxBit Network, which will offer users free 2021 tax forms, the company said in a press release on 11 January.

According to the announcement, the newly launched TaxBit Network is trying to democratize crypto tax calculations and tax forms by making the needed software more accessible. Users of participating platforms will be able to use the TaxBit ecosystem to generate their transaction history data for free when filing their taxes. The CEO of Binance.US, Brian Shroder, said in a statement:

“With the recent passing of the cryptocurrency tax provision in the Infrastructure Bill, proactively providing our users with the tax reporting and forms they need is an important step in our commitment to safety and compliance. Binance.US is excited to make the tax reporting process simple and free to our users through the TaxBit Network.”

The TaxBit Network is currently being supported by over 500 platforms, amongst which are major names such as PayPal, Binance.US, Coinbase, FTX.US, Gemini, Celsius Network, Blockchain.com, Paxos, OkCoin, and BlockFi. Some of the participating platforms will further simplify the access to the tax reporting tool by incorporating a quick TaxBit sign-up on their apps.

The network will significantly improve the lives of U.S. taxpayers, who are required to generate Form 8949 to show their transaction history for the past year. Taxpayers need to fill in the description of the property, the date of acquisition, sell date, and the proceeds and costs basis of every short-term transaction, which could be burdensome to crypto traders that generate thousands of transactions per year. In order to resolve this issue, many were forced to hire an accountant or buy tax software, which could set them back thousand of dollars each year.

Discussion
Related Coverage
Tornado Cash to Use Chainalysis to Block OFAC Sanctioned Addresses
  • Roman Semenov, co-founder of Tornado Cash, explained that the blockade only applies to the platform’s frontend, and not the underlying smart contract.
  • The news came only a day after the Treasury Department alleged that North Korean hacker group Lazarus was connected to the $625 million Ronin bridge hack.
April 15, 2022, 5:12 PM
tornado cash

Shutterstock

BNY Mellon to Integrate Chainalysis’ Complience Software
  • BNY Mellon, which oversees almost $47 trillion in assets, will utilize Chainalysis software to track, record and make use of the data surrounding crypto assets.
  • The bank plans to integrate the full Chainalysis compliance software suite, which includes KYT, Reactor, and Kryptos.
Crypto Analytics Firm Elliptic Raises $60M
  • Raised in a Series C funding round, the investment will help the company expand its global team of experts, and accelerate its research and development.
  • The $60 million funding round was led by Evolution Equity Partners, and also saw participation from the Softbank Vision Fund 2.