Mobile payments processor Cash App has integrated crypto tax and accounting software TaxBit into its services, giving Bitcoin (BTC) holders a more streamlined approach to reporting their taxes.
As of Feb. 28, Cash App users can now keep track of their Bitcoin transactions for tax reporting purposes using TaxBit, both companies announced. TaxBit’s chief operating officer Lindsey Argalas said her company’s platform simplifies tax reporting “for everyone who has integrated digital assets into their portfolio.”
Cash App launched its Bitcoin trading services in 2018 and rolled out BTC deposits the following year. The company claims to have over 10 million Bitcoin users. Cash App’s parent company, Block Inc., has generated billions of dollars in Bitcoin revenue over the years. According to United States Securities and Exchange filings, Block Inc. generated $1.96 billion in Bitcoin revenue during the fourth quarter of 2021.
TaxBit launched TaxBit Network in 2022 to provide crypto traders free tax forms. The industry consortium launched with over a dozen U.S.-based companies, including PayPal, Coinbase, Binance.US, Paxos and Gemini.
Washington’s Internal Revenue Service, or IRS, set Jan. 23 as the start of the 2022 tax filing season. Most taxpayers have until April 18 to file and pay taxes owed. In January, the IRS reminded taxpayers of their crypto income reporting obligations — this includes capital gains from trading, mining and staking activities.