Ernst & Young, international consultancy and audit firm, have rolled out a cryptocurrency tax app titled EY CryptoPrep. It is a mechanized, web-based Software-as-a-Service (SaaS) product to help customer to file tax in the US.
EY CryptoPrep acquires info from several exchanges and key cryptocurrencies, applies appropriate tax laws on an automated mode or uses it as a portion of an administered service.
Marna Ricker, EY America’s Vice Chair, detailed that the application was straightforward response to increasing interest in cryptos:
“Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes.”
Cryptos have created chaos and complexity for several users due to tough recording rules for traders along with reasonably unclear tax guidelines in some situations. The application has come at the right time as the IRS seems to be preparing for a crackdown on non-compliance of crypto tax.
Last month, they issued a Statement of Work (SOW), inviting private contractors to assist in auditing tax returns associated with cryptocurrency assets.
Last year’s cryptocurrency related tax guidelines remains vague and IRS is yet to provide necessary clarifications. As of today, the only thing that is known clearly is that it is compulsory for the US citizens to reveal their cryptocurrency holdings, irrespective of gains or losses.
Notably, US do not stand alone in drafting crypto taxation laws. Earlier this week, South Korea’s finance minister affirmed they will enforce a crypto tax in the immediate future. He also stated that the government is involved in global negotiations about a fresh digital tax framework.
