TaxBit, a Utah-based software company, recently launched the TaxBit Network. The network comprises 20 of the top crypto companies and exchanges, decentralized applications (dapps), and NFT marketplaces, in addition to traditional financial technology groups. It affords clients of the supported institutions simplified and cost efficient access to crypto tax forms. CEX.IO is a proud TaxBit partner.
TaxBit co-founder and CEO, Austin Woodward, outlined the scope of the software to CoinDesk. He noted that he hopes to democratize and demystify the crypto tax process by making the software more accessible to investors.
Crypto taxes in the U.S. can be compared to an intricate labyrinth. The majority of investors are left with no direction and annual filing costs, at times, in the thousands of dollars. The process can be even more expensive for those who take crypto taxes into their own hands. Consumer tax aggregators base the costs of their service by transaction volume, which makes calculating and filing especially expensive for those trading at higher-frequency or with higher volume. Hiring a professional to manage individual crypto taxes is the alternative to the do-it-yourself approach. This avenue can be equally expensive and bears the time cost of waiting in line for your taxes to be handled.
Problems and worries related to filing crypto taxes, and the accompanying costs, are now eliminated for CEX.IO users in the U.S. A TaxBit Network partner institution, CEX.IO allows users to integrate their account with the TaxBit software. This supports tax calculations seen line-by-line, and all necessary IRS forms and income reports generated at no cost. The reports produced by TaxBit can then be uploaded to the user’s choice of tax filing software, or passed on to an accountant. TaxBit’s team of industry-leading CPAs and tax attorneys have certified the accuracy of tax calculations related to platforms within the TaxBit Network, including reconciling tax forms and all 1099’s issued by such platforms.
CEX.IO has always operated with compliance top of mind. Joining the TaxBit Network is in line with this mission. We understand the concerns of regulators and are committed to advancing the space as the regulatory landscape evolves. CEX.IO offers products that keep its customers within the bounds of developing regulation, all while simplifying their experiences.
CEX.IO users can now connect to TaxBit after signing in to their CEX.IO exchange accounts. Accessing the “Transactions” tab under “Finance” along the top ribbon will prompt users with the option to sign up for, and access, TaxBit.