TaxBit, a crypto tax compliance firm, launched the TaxBit Network today with hopes that it will help democratize crypto tax calculations and tax forms by offering necessary reporting data. A report unveiled this news noting that the company seeks to unite leading crypto companies and offer their users free 2021 tax forms.
According to the , the TaxBit Network had approximately 20 renowned crypto businesses in the US. These include, but are not limited to, PayPal, Binance.US, Coinbase, FTX.US, Gemini, Celsius Network, Blockchain.com, Venmo, Paxos, OkCoin, and BlockFi. Reportedly, the network plans to onboard new companies daily.
Apart from offering users of certified members of the TaxBit Network free, accurate 2021 tax forms, TaxBit also intends to incorporate a feature that lets users on select platforms sign-up to its platform. In so doing, TaxBit will offer users quick access to its tax reporting tools, simplifying the overall experience.
Explaining the benefits of dealing with crypto under companies that are part of the TaxBit Network, the firm said,
If a user has taxable transactions on platforms not part of the TaxBit Network, a cost will apply to retrieve tax forms from out-of-network platforms.
Eliminating barriers to mainstream crypto adoption
Through its network, TaxBit seeks to foster mass crypto adoption in the US by helping crypto adopters stay compliant without spending too much on taxes. According to TaxBit, the process of generating crypto tax forms saw users spend anywhere between hundreds and thousands of dollars, depending on whether they leveraged do-it-yourself software or secured the services of an accountant.
Michelle O’Connor, TaxBit’s vice president of marketing, touted the company’s tax reporting tools, saying,
Our portfolio performance and tax optimization solutions empower year around decisioning versus that tax season-only mentality. With market volatility so prevalent, we provide the retail consumer with tax compliant solutions to optimize their holdings through tax-loss harvesting.
Brian Shroder, the CEO of Binance.US, said the exchange decided to participate in the TaxBit Network because of its commitment to safety and compliance. He admitted that the decision was also influenced by President Joe Biden signing the infrastructure bill into law in November last year.
This news comes after TaxBit $130.00 million (?97.47 million) at a $1.30 billion (?0.95 billion) valuation in its Series B funding round in August last year. The IVP and Insight Partners-led funding round featured multiple investors, including Anthony Pompliano, Tiger Global, Paradigm, 9Yards Capital, Sapphire Ventures, and Madrona Venture Group.
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