Tag: Tax Reporting

Revolut Integrates Crypto Tax Service

by Blockchain News

An automatic tax reporting solution for bitcoin transactions has been incorporated by Revolut, a digital financial services firm that has more than 28 million customers throughout the globe. The financial technology company has formed a partnership with the cryptocurrency tax solution provider Koinly in order to simplify the tax filing process for its customers. Users of Revolut who have their accounts integrated with Koinly will have the ability to produce cryptocurrency tax reports, which will make it possible for them to assess profits and losses based on their bitcoin transactions. This will make the often complicated process of filing taxes easier, particularly for those who have more than one cryptocurrency exchange and wallet.

As a result of the increased attention that tax authorities all over the globe are paying to the cryptocurrency industry, more and more people are turning to the usage of bitcoin tax software. Danny Talwar, the head of tax at Koinly, pointed out that many cryptocurrency traders have many exchanges and wallets, which makes it very difficult to maintain accurate records. Crypto tax software helps save time and automates tax reporting, which is especially helpful given the stringent and burdensome record-keeping rules that apply internationally.

Since December of 2017, Revolut has been providing bitcoin custody services, and the most recent addition to its cryptocurrency offerings is the inclusion of an automated tax reporting service. The regulatory permission for the digital bank has been obtained in a number of countries, including a banking license in Lithuania in late 2018. In September 2022, the United Kingdom’s Financial Conduct Authority granted the fintech company permission to sell bitcoin goods and services inside the nation after reviewing the company’s proposed plans.

The incorporation of the automated tax reporting service is a component of Revolut’s overall plan to grow its services all over the globe while adhering to the regulatory standards imposed by a variety of nations. Users of Revolut will find it much simpler and more convenient to comply with tax legislation and keep up with the rapidly shifting regulatory environment if they utilize tax reporting software.

In conclusion, the integration of Revolut with Koinly’s automated tax reporting service is a big step in simplifying the process of tax reporting for the cryptocurrency users of Revolut’s platform. Because of the continued expansion of the bitcoin industry and the accompanying rise in regulatory scrutiny, automated tax reporting solutions are quickly becoming an absolute must. This is a strong evidence of Revolut’s dedication to provide creative solutions that suit the increasing demands of its consumers, and the decision to offer this service to Revolut’s users is a clear indicator of that commitment.

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Cash App Integrates TaxBit for Streamlined Crypto Tax Reporting

by Blockchain News

Cash App, a mobile payments processor, has integrated tax and accounting software provider TaxBit into its platform to streamline the tax reporting process for Bitcoin users. The integration, which was announced by both companies, allows Cash App users to track their Bitcoin transactions for tax purposes using TaxBit’s platform. TaxBit’s chief operating officer, Lindsey Argalas, stated that their platform simplifies tax reporting for anyone who has integrated digital assets into their investment portfolio.

Cash App launched its Bitcoin trading services in 2018 and introduced BTC deposits the following year. As of now, the company boasts over 10 million Bitcoin users. Its parent company, Block Inc., has generated billions of dollars in Bitcoin revenue over the years. Block Inc. reported $1.96 billion in Bitcoin revenue during the fourth quarter of 2021, according to United States Securities and Exchange filings.

TaxBit, on the other hand, launched TaxBit Network in 2022, which provides crypto traders free tax forms. The industry consortium was launched with over a dozen U.S.-based companies, including PayPal, Coinbase, Binance.US, Paxos, and Gemini. The aim of TaxBit Network is to simplify tax reporting for cryptocurrency traders and investors.

The Internal Revenue Service (IRS) of Washington has set January 23 as the start of the 2022 tax filing season, giving most taxpayers until April 18 to file and pay their taxes owed. In January, the IRS reminded taxpayers of their crypto income reporting obligations, including capital gains from trading, mining, and staking activities.

The integration of TaxBit into Cash App’s services comes as more companies are exploring the potential of cryptocurrency and blockchain technology. As the popularity of digital assets continues to grow, regulators and tax authorities are paying closer attention to the tax implications of crypto investments. Platforms like TaxBit can help investors and traders stay on top of their tax obligations and avoid any potential legal issues.

In conclusion, the integration of TaxBit into Cash App’s services is a positive step for the cryptocurrency industry. It provides a more efficient and streamlined way for Bitcoin users to manage their tax obligations. As the industry continues to evolve, we can expect to see more developments aimed at making crypto investments more accessible and easier to manage.

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Court orders Kraken to provide information on user transactions to the IRS

by Cointelegraph

Kraken has been ordered to provide information on its users to who conducted the equivalent of $20,000 in crypto transactions in any one year, between 2016 and 2020, to the Internal Revenue Service.

A federal court in northern California authorized the IRS to serve a “John Doe summons” on Kraken yesterday. The exchange is not alleged to have done anything wrong.

The IRS is after the records of an “ascertainable group or class of persons” who may have failed to comply with tax reporting and internal revenue laws

In addition, the IRS will check if Kraken has been compliant with its record-keeping obligations such as the Know-Your-Customer rules.

“This John Doe summons is part of our effort to uncover those who are trying to skirt reporting and avoid paying their fair share, ” said IRS Commissioner Chuck Rettig in the court’s press release.

Acting Assistant Attorney General David Hubbert of the Justice Department’s Tax Division said:

“Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer.”

A John Doe summons is used by the IRS to get the names and information about all taxpayers from a specified description, such as the ‘$20,000 and over’ class stated in the latest summons.

According to the supporting declaration, the IRS is after information on five different classes of U.S taxpayer. Some of the activities the IRS are looking into, include: reporting limited income despite trading crypto between a range of $5 million to $56 million, operating multiple accounts while exchanging fiat currency to digital assets and back to fiat for no apparent economic benefit.

The IRS is also keeping an eye on people who submitted delinquent tax returns in 2017 and 2018 with income more than $2 million each year, with activity consisting of more than $23 million in deposits and withdrawals at various crypto exchanges.

The road to this latest fishing expedition was reportedly paved by the first John Doe summons on Coinbase in 2016, in which the IRS obtained the information of 13,000 Coinbase customers.

Coinbase has been under scrutiny ever since, and in November 2020 tax lawyers of Coinbase warned customers that it had been tracking an increase in IRS enforcement against users who fail to comply with tax and reporting requirements.

Cointelegraph reported on April 18 that a Massachusetts federal court had entered an order authorizing the IRS to serve a “John Doe summons” on Circle Internet Financial Inc.