Ernst & Young launches App to help U.S. crypto investors file tax returns
Ernst & Young (EY) has introduced a new application that helps U.S. cryptocurrency traders easily calculate and pay taxes.
The EY Cryptoprep application, a software-based cryptographic tax tool (SaaS), which helps users calculate the profits and losses related to cryptocurrencies must be reported on Form 8949, a form that is Used for reporting sales and exchanging capital assets.
According to a June 18 statement from EY, one of the world's four largest accounting firms, the tool provides step-by-step guidance through the cryptocurrency tax process. Application users, supporting large digital assets, can connect it to various exchanges to collect data on all their transactions.
EY Cryptoprep will then aggregate and collate the data before applying the relevant tax rules to create a crypto profit or loss account. Subsequently, Form 8949 completed for all applicable years was issued. It also allows users to submit revised refunds for past tax debts, not just for the current year.
Ernst & Young's vice president for tax services Marna Ricker claims the company is meeting growing demand.
Our customers increasingly hold and trade cryptocurrency assets, creating the need for an innovative solution to address the growing complexity surrounding cryptocurrency tax payment. EY Foundry, our company's internal venture unit, created EY Cryptoprep to modernize the cryptocurrency tax accounting process, Ricker said.
This is not the first offer from EY to target digital financial assets. The company revealed an electronic auditing software called EY Blockchain in April 2018. EY Crypto-Asset Account and Tax, a tool to support accounting and tax calculations for electricity transactions. Death, aimed at both institutional and retail investors, was launched last year.
In the report of Chirag Patel, the foundry leader Ernst & Young, in the statement.
The deadline for the Internal Revenue Service to file a tax return is July 15, 2020.