Crypto tax compliance firm TaxBit is working to unite major industry companies like Coinbase and Binance.US within one network to enable free 2021 tax forms for users.
The crypto tax software provider on Tuesday launched the TaxBit Network, a group of companies aiming to democratize crypto tax calculations and tax forms by providing necessary tax reporting data to all network users for free.
The TaxBit Network at launch includes about 20 major crypto-related businesses in the United States, including firms like PayPal, Binance.US, Coinbase, FTX.US, Gemini, Celsius Network, Blockchain.com, Paxos, OkCoin and BlockFi. The network will be adding new companies daily, TaxBit's vice president of marketing Michelle O’Connor told Cointelegraph.
As part of the initiative, every user of the TaxBit network company will be able to receive free and accurate 2021 tax forms. Additionally, a number of participating platforms will be incorporating a quick TaxBit sign-up within their apps to simplify access to tax reporting tools.
“If a user has taxable transactions on platforms not part of the TaxBit Network, a cost will apply to retrieve tax forms from out-of-network platforms,” TaxBit noted.
The new development aims to eliminate barriers to mainstream crypto adoption by ensuring that crypto users in the U.S. are able to stay tax compliant without spending tons of money. “Historically, the process of generating cryptocurrency tax forms cost individuals anywhere from hundreds to thousands of dollars per year depending on whether they used do-it-yourself software or enlisted an accountant,” the announcement notes.
"Our portfolio performance and tax optimization solutions empower year around decisioning versus that tax season-only mentality. With market volatility so prevalent, we provide the retail consumer with tax compliant solutions to optimize their holdings through tax-loss harvesting," O’Connor stated.
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Binance.US CEO Brian Shroder pointed out that the company’s participation in the TaxBit Network is a crucial step in their commitment to safety and compliance, particularly after President Joe Biden signed the infrastructure bill into law in November.
TaxBit is a major crypto-focused tax compliance firm that brings together tax attorneys and software developers to build software to simplify and automate the process of crypto tax reporting. Backed by Winklevoss twins’ family office, TaxBit has seen notable growth recently, securing a $130 million raise at a $1.3 billion valuation in August 2021.