“Recognizing that virtual currencies are becoming a mainstream investment vehicle for many businesses, individual taxpayers, and traders, the IRS has made reporting of the gains and losses from cryptocurrency transactions a reporting requirement for the 2021 tax season,” said Cathy Rowe, CPA, CA and Vice President of Product Management at Wolters Kluwer Tax & Accounting North America. “Integrating these virtual currency tools with our expert solutions helps tax professionals accurately report on these unique investments for their clients.”
Now, with every virtual currency transaction considered a taxable event, it’s the tax professional's responsibility to calculate the gains and losses, track cost basis, and ensure tax returns are accurate, which can be especially complex if clients use multiple exchanges. With the addition of a virtual currency field in the 2020 IRS Form 1040, tax and accounting firms of all sizes will now find themselves needing to service more business and individual taxpayer clients who require reporting on their virtual currency holdings. This creates an opportunity for forward-thinking tax professionals to enhance their service offerings to include the cryptocurrency space.
"With the recent questions on the IRS tax forms and more individuals and businesses buying, holding, and spending cryptocurrency, there’s a growing need to understand how digital assets align with tax, accounting, and reporting as cryptocurrency adoption goes mainstream," added John Wandrisco, Chief Commercial Officer at Verady. “We’re very excited to partner with Wolters Kluwer to solve these challenges for professionals with Ledgible Tax Pro in a way that saves their practices both time and effort, while adding lucrative new advisory offerings.”
CoinTracker and Ledgible Tax Pro are designed specifically to automate IRS Form 8949 for virtual currency assets, and the integration with tax preparation and compliance solutions from Wolters Kluwer makes it easier for firms to import this data into tax returns.
“There are a lot of new clients coming into the virtual currency space these days,” adds Shehan Chandrasekera, CPA and Head of Tax Strategy at CoinTracker. “We’re excited to partner with Wolters Kluwer and integrate our tool with their solutions to help tax and accounting firms capitalize on this opportunity and become practice leaders in the space.”
You can listen to a podcast with Cathy Rowe, John Wandrisco, and Kell Canty, CEO of Ledgible, here, and a podcast with Cathy Rowe and Shehan Chandrasekera here to learn more about how these integrations will help tax professionals during the 2021 tax season and beyond.
CoinTracker is a trusted and secure cryptocurrency tax and accounting software with over 250,000 users. It was founded by a team of former Google employees in San Francisco, with the goal of increasing the world’s financial freedom and prosperity. Today, CoinTracker tracks over $10 billion of cryptocurrency across 300+ exchanges and 8,000+ assets. For more information, please visit www.cointracker.io.
Ledgible by Verady provides AICPA SOC assured tax reporting and portfolio tracking for crypto assets. The Ledgible platform is the proven crypto asset solution for professionals in use at leading accounting firms and major crypto companies around the world. Ledgible Tax Pro is used by hundreds of firms to make tax reporting easy for their professionals and clients. For more information, please visit ledgible.io.