Paying your cryptocurrency taxes just got a lot more easier. According to a March 4 press release. Ernst & Young (EY), popular auditing and financial services firm has launched a new tool for taxes on cryptocurrency.
This new tool will allow users to account for and report their cryptocurrency taxes. Called EY Crypto-Asset Accounting and Tax (CAAT), this tool will bring about more effective tax calculations for digital currency transactions.
The tool will serve both institutional customers who trade cryptocurrency on a larger scale and even small time traders who engage in cryptocurrency trading for personal use. Customers currently using EY TaxChat and EY Private Client Services, will have access to this new and improved tool.
If you have read our piece on Everything About Cryptocurrency Taxes, you will realize the importance of being more mindful about paying off your cryptocurrency taxes. Services like the EY CAAT are important tools for those trading on multiple exchnages, since it collects data about transactions from “virtually all” major exchanges.
This data is then organized and transferred into comprehensive reports, which includes cryptocurrency-related Internal Revenue Service (IRS) tax returns. With the increase of cryptocurrency trading, it is now more important than ever to have a tool like this for users to file their crptocurrency taxes without much of a hassle.
Some other major developments have also taken place in the U.S., relating to cryptocurrency taxes. The U.S. state of Ohio became the first state to allow businesses to pay taxes using Bitcoin (BTC), which is the top cryptocurrency. Upto 23 different taxes can be paid in BTC, using an online portal set up by the state treasury office.
Additionally, major cryptocurrency exchange Coinbase, has added options for customers in the States to claim crypto trades on their taxes through an integration with TurboTax.