The United States-based cryptocurrency tax software developer TaxBit is reportedly looking for new funding at a valuation of $1 billion or more, which would make it a unicorn startup.
According to Bloomberg, people with knowledge of the matter said TaxBit is in talks to raise capital, but the terms have yet to be finalized. TaxBit declined to comment on the reports.
TaxBit is a Salt Lake City, Utah-based startup founded in 2018 specializing in crypto-related tax processes for consumers and businesses. Developed by a group of CPAs, tax attorneys and software developers, the solution enables users to track the tax impact on their trades on crypto exchanges.
Earlier this year, TaxBit raised $100 million in a Series A round to bolster its expansion into Europe. Paradigm and Tiger Capital led the funding round while other participants included PayPal’s venture arm, Coinbase, Winklevoss Capital, hedge fund billionaire Bill Ackman, Qualtrics’ Ryan Smith and Anthony Pompliano.
According to the same report, TaxBit said that the Internal Revenue Service selected TaxBit to provide crypto-related data analysis and tax calculation support for taxpayers following Series A funding.
Marking it as a milestone for the crypto industry, Woodward then said that IRS’ decision indicates regulators are embracing the asset class, “but doing so in a way that ensures a straightforward approach to conform with existing regulations.”
“The United States Internal Revenue Service classifies crypto as property, meaning you can trigger taxes every time you use crypto to buy something,” explains Cointelegraph contributor and tax lawyer Robert W. Wood.