CryptoTrader Tax launches new software for cryptocurrency tax reporting! CryptoTrader Tax is a Missouri-based software maker and their product is designed to help firms, CPA’s, and professionals counsel their clients about taxes from crypto!
CryptoTrader.Tax has the software that is in accordance with tax guidelines set out by the United States Internal Revenue Service – they released the news in a Press Conference yesterday.
The new tool provides step-by-step directions for importing crypto transactions by clients. The tool allows tax professionals to auto-generate client tax reports using transaction data imported into CryptoTrader.Tax.
Since the IRS released its guidelines for crypto-based tax reporting in October, roughly 150 million American taxpayers will have to answer the question on Form 1040 whether they received, sold, sent, or exchanged any virtual currency.
CryptoTrader.Tax stated that the IRS expects that roughly 12 million tax returns should contain some form of crypto investment.
David Kemmerer, CEO and co-founder CryptoTrader.Tax stated that the new question on 1040 means that all tax professionals have to start asking whether or not their clients had participated in any crypto-related financial activities for the year, but they also need to be ready to handle crypto taxation for clients.
According to the report, CryptoTrader.Tax already has thousands of users on its platform to date and has processed over $10 billion in crypto transactions over the past two years. The new software is free-to-use for tax professionals.
Keep in mind, in 2018, 0.04% of tax filers reported capital gains from crypto in 2018. US Persons are subject to US tax 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 people receive crypto as a gift, there is reportedly no immediate tax.