Multinational professional services company Ernst & Young (EY) has launched an application for crypto currency tax returns called EY CryptoPrep. It is a fully automated web-based software as a service (ScuS) product to help clients with their U.S. tax return.
EY CryptoPrep collects data from numerous exchanges and major crypto currencies, automatically applies the relevant Immediate Edge tax rules, and completes Form 8949. Clients can choose to use the program themselves or have it as part of a managed service.
The U.S. tax court says you must sell your crypto currency savings if you owe the IRS
EY’s vice president of tax services, Marna Ricker, explained that the application was a direct response to the growing interest in cryptomonies:
„Our clients have and are changing more and more crypto currencies, creating a need for an innovative solution to address the increasing complexity surrounding crypto currency tax filing.
Crypto currencies have caused confusion and difficulty for many users due to strict identity verification requirements on the platforms, as well as somewhat opaque tax regulations in certain cases.
The IRS is looking for outside contractors to help calculate taxes on crypto currency transactions
The IRS takes action
The application comes just in time when the U.S. Internal Revenue Service (IRS) appears to be cracking down on the failure to comply with the cryptomoney tax. In May of this year, they filed a Statement of Work (SOW), asking private contractors to help audit tax returns related to digital assets.
The IRS has not yet clarified what its 2019 cryptomoney tax guidelines are, but it did note that U.S. citizens must report their cryptomoney holdings, including any profits or losses.
South Korean Finance Minister Confirms Plan to Tax Crypt Coin
Global tax uncertainty
The United States is not the only country that is still developing its tax laws around crypto-currency. Earlier this week, South Korea’s finance minister confirmed that he will create a tax on cryptomonies in the near future. He also said the government is conducting international discussions on a new digital tax structure.