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Tax Tool for Reporting Cryptocurrencies Introduced by Ernst & Young

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According to a press release dated March 4, Ernst & Young (Big Four auditing and professional services firm) has come up with a tool in order to account and prepare taxes on cryptocurrency holdings. According to reports, this new tool by Ernst and Young is called CAAT (EY Crypto-Asset Accounting and Tax) and is essentially designed to boost accounting and tax calculations for transactions of digital currencies for everyone including institutional customers who have cryptocurrency in their balance sheets as well as individuals trading cryptocurrency in a smaller scale. Reports also suggest that this service will be available for everyone using EY TaxChart and to EY Private Client Services clients.

Reports suggest that the EY CAAT has the potential of accumulating information about transactions of cryptocurrency from ‘virtually all’ major crypto exchanges, consolidation of data from various sources, as well as automatically producing reports, including crypto related IRS (Internal Revenue Service.) According to EY, it has seen notable growth in terms of a number of customers owning cryptocurrency assets.

According to reports In the previous month, Turbo Tax Online (tax preparation software) has joined hands with CoinsTax LLC with the intention of adding cryptocurrency tax calculations to its services. The service will essentially enable users to import trading data from major crypto exchanges directly. Also, once the calculations are done, capital gains and income reports can be downloaded/uploaded straight into Form 1040 Schedule D.

In the month of January, Coinbase (A major cryptocurrency exchange and wallet service) added resources for their US based customers enabling them to claim crypto trades on their taxes through collaboration with TurboTax. According to reports, Coinbase users along with users of Coinbase Pro will be able to automatically import transactions into a new, crypto-specific section of TurboTax Premier software. Meanwhile, Ohio State in the US became the first ever state to allow businesses to pay taxes using BTC (Bitcoin). Reports suggest that businesses are allowed to pay a total of 23 different taxes using Bitcoin through an online portal set up by the treasury office of the state.

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