American cryptocurrency exchange Gemini is partnering with tax compliance firm TaxBit to help its customers treport their crypto taxes with TaxBit’s Tax Center Suite solution.
Tyler Winklevoss, CEO of Gemini exchange, said that TaxBit’s software will help reduce the “pain point of crypto tax,” enabling users to track the real-time tax impact on their crypto trades on Gemini. According to the announcement, the tool will also allow customers to potentially increase their tax refund and lower their tax liability, providing trade alerts when tax-saving opportunities are available.
TaxBit’s Tax Center Suite solution is the first crypto tax-related tool that Gemini has ever deployed, a spokesperson at Gemini told Cointelegraph. The representative said that the company expects to integrate TaxBit's solution in the first half of 2021 or sooner, as it anticipates definitive guidance from the Internal Revenue Service on how crypto should be reported.
Once the software is fully implemented on Gemini, the exchange’s customers in the United States will be able to download a tax report in a format required by the IRS.
The Winklevoss brothers invested in TaxBit earlier this year. In January 2020, their family office — Winklevoss Capital — participated in a $5 million seed funding round for TaxBit. Gemini also has had a referral relationship with TaxBit since the 2019 tax reporting period, a Gemini spokesperson noted.
Gemini, a cryptocurrency exchange founded by the Winklevoss twins, will soon integrate a new tool enabling users to automate their crypto tax reporting.