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TaxBit allows US crypto users to file crypto taxes hassle-free

TaxBit, a US-based crypto tax firm, announced its plans of democratising the process in which users can file crypto tax form hassle-free. In the company’s press release dated January 11, 2022, it announced that the form, along with tax tools, will be available to users of platforms supported by the TaxBit ecosystem. 

The initial launch of the TaxBit Network included around 20 major crypto companies in the US including exchanges like Coinbase, Binance.US, FTX.US, Gemini and It also partnered with payment companies supporting crypto transactions such as Paypal and Venmo. 

According to Michelle O’Connor, TaxBit vice president for marketing, other crypto firms will be joining the network. In her statement to Cointelegraph, she said that these companies will be added to the network daily. 

‘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,’ she added. 

The Taxbit Network aims to help users remain tax compliant without facing added overhead charges just by filing the crypto tax firm. Historically, generating crypto tax forms can cost hundreds to thousands of dollars per year, as noted in the press release.

Services will be free of charge for any crypto users enlisted on the supported crypto companies which eliminate the bureaucratic barrier for users to remain tax compliant per the new crypto regulations. 

Every user of certified companies under the network will have access to free and accurate tax forms as well as tax reporting tools. 

‘​​With the recent passing of the cryptocurrency tax provision in the Infrastructure Bill, proactively providing our users with the tax reporting and forms they need is an important step in our commitment to safety and compliance,’ said Binance.US Chief Executive Officer (CEO) Brian Shroder in a statement. 

The recent tax provision requires US citizens to disclose all their transaction history of the past year, including crypto trading activities in their Form 8949 submitted to the Internal Revenue Service (IRS).

All supported institutions in the network can offer their users crypto tax tools for free by incorporating a one-click TaxBit signup on their respective native platforms to simplify the process. 

This will enable users to integrate their accounts and crypto activities from over 500 sources. The platform will provide line-by-line tax calculations and tax positions to help with the filing of IRS Forms 8949 and income tax reports.

TaxBit CEO Austin Woodward expressed his hope of making the software more accessible to crypto users. In a statement provided to CoinDesk, he said that the firm removed the concept of transaction limits to avoid racking up a big tax bill on trading activities.

However, additional costs may apply to any crypto transactions credited on a non-TaxBit approved network. This cost is comparatively low compared to hiring accountants or buying tax software to comply with the US government demands.

Browse through Cryptoshimbun for more information regarding crypto tax reforms and cryptocurrency updates.

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