- Gemini has partnered with TaxBit and is set to integrate its Tax Center Suite according to an announcement by the Winklevoss led crypto exchange on Oct 29.
- This milestone comes as the U.S Internal Revenue Service (IRS) increases its oversight on crypto activity for tax reporting purposes.
According to the announcement, the partnership between Gemini and TaxBit is set to harmonize the tax reporting process according to the required IRS format. The blog highlights that ‘this will make it simple and easy for you to complete your crypto taxes.’
It's never too early to start thinking about your crypto taxes. Excited to announce our partnership with @TaxBit to integrate their Tax Center Suite technology to help you automate and optimize your #crypto tax reporting!
Learn more on our blog: https://t.co/QibPEU7hyA
— Gemini (@Gemini) October 29, 2020
As per the current market dynamics, tax reporting on crypto trading activity remains a challenge for most stakeholders. Gemini’s integration of TaxBit’s Tax Center Suite will solve some of the shortcomings through the automated reporting services. Also, the exchange users can optimize in cases where they stand a chance of getting tax refunds. Gemini’s CEO, Tyler Winklevoss, noted that this milestone would help to minimize the ‘pain point of crypto tax,’
“TaxBit's software automates the calculations required for crypto tax reporting, helping reduce the pain point of crypto tax for our users.
Investors will also be able to see real-time tax implications of any trades they make on Gemini.”
Gemini's representative revealed to Cointelegraph that TaxBit’s crypto tax solution is the initial tool of its kind to be deployed by the exchange. This integration is set to occur within the first six months of 2021, as stakeholders await further guidance from the IRS on crypto tax reporting.
Once the integration is complete, U.S Gemini clients will trail the tax attributed to their trades in real-time. Also, the Tax Center Suite will feature IRS compliant tax report downloads, making it seamless to report crypto taxes. TaxBit’s CEO, Austin Woodward, also commented on the partnership,
“We are excited to partner with Gemini to bring industry-leading tax technology to Gemini's platform. Gemini is making crypto taxes, something that historically has been viewed as intimidating and complex, simple.”
Notably, TaxBit has been operational since early 2019 and touts some key partnerships other than it's latest; the firm had earlier collaborated with Uphold, a crypto trading platform. According to its website, the Tax Center Suite offers support for over 2,000 digital assets. The company’s seed funding at the beginning of 2020 attracted prominent players, including Winklevoss Capital.