On Monday, November 25, 2019, Missouri-based software development firm, CryptoTrader.Tax announced the launch of its new tax professional suite. As per the press release, this stemmed into existence due to the lack of clarity among traders and professionals when it comes to reporting crypto-related taxes.
Ever since the U.S Internal Revenue Service (IRS) came to the realization that traders are heavily investing in cryptocurrencies, they’ve set up new guidelines for reporting purposes. The 2020 tax season supposedly marks a new chapter for cryptocurrencies. To be more specific, it has been shared that a crypto tax question will appear on 1040 Schedule 1, to which users will have to respond yes or no:
“At any time during 2019, did you receive, sell, exchange or otherwise acquire any financial interest in virtual currency?”
Co-Founder and CEO of CryptoTrader.Tax, David Kemmerer discussed heavily on crypto tax services. He notes that this new move on behalf of the IRS implies that tax professionals are required to have the crypto conversation with their clients and should be comfortable preparing their taxes. Given the gap in such tools, Kemmerer expressed excitement in launching this suite of tools. He said:
“We are excited to launch our crypto tax professional suite to provide a much-needed solution for these professionals.”
Speaking of crypto taxes, IRS not only came up some form of clarification for reporting crypto taxes but has also sent out over 10,000 letters to crypto owners reminding them of their tax obligations. That said, traders are now seeking softwares like that of CryptoTrader.Tax. As reported by Bitcoin.com, IRS’ new guidance resulted in traffic on sites like Beartax, Cointracking, and Tokentax.