The high volatility of cryptocurrency prices and the number of exchanges on which these coins are traded leave traders and investors with the difficult task of filing accurate tax reports about their earnings and losses.
Big four auditing firm, Ernst and Young (EY) have offered to solve the challenge by unveiling a new tool that handles crypto tax filing and reporting for clients.
As per a press release by EY, the new tool dubbed EY Crypto-Asset Accounting and Tax (CAAT) will help both institutional investors who hold cryptocurrencies and small scale traders to turn in their crypto tax returns efficiently.
The software which is reportedly available to U.S residents can source transactional information from “virtually all major exchanges” and consolidate it with data from multiple sources. The output would be automated reports and dashboards as well as the option to prepare Internal Revenue Service (IRS) tax returns.
The auditors admit that there is a spike in the number of their clients getting involved with cryptocurrencies and they created the new tool as an answer to the already existing market demand.
Michael Meisler, a partner and leader of blockchain initiatives at EY even confirmed that the rollout had met profound success straight out the door.
"The initial validation we have received from the market has been phenomenal, but it only represents the beginning," Meisler said in the release.
The new solution was made available to those who use EY’s TaxChat service and EY Private clients.
Interestingly, while the latest development seems like a big win for EY, it also represents a significant achievement for the cryptocurrency industry as it continues the march towards mainstream acceptance.
A big four auditing firm recognizing the need to simplify crypto tax filing is a big sign that new industry is here to stay. It also adds up beautifully to the acceptance of Bitcoin for crypto taxes in U.S State, Ohio.
Subscribe to our Telegram channel to stay up to date on the latest STO and crypto regulations news