Popular cryptocurrency exchange Gemini recently announced its partnership with tax compliance firm Taxbit. The collaboration is aimed at automating and optimizing tax reporting on cryptocurrencies.
The TaxBit tool will allow Gemini customers to reduce the tax burden of the crypto business
According to the announcement: “When the Tax Center Suite is fully implemented on Gemini, customers in the United States will be able to download a full tax report that can be uploaded and used on a wide variety of popular tax return software or delivered. to an accountant in the same format that the IRS requires ”.
In the unclear atmosphere surrounding the issue of cryptocurrency taxation in the US, many users have been confused but, with TaxBit's software, users will be able to monitor the tax impact in real time on their cryptocurrency exchanges. on Gemini.
Tyler Winklevoss, CEO of the Gemini Exchange, said TaxBit's software will help reduce the “cryptocurrency tax pain point” by allowing users to monitor the real-time tax impact on their crypto transactions on Gemini.
According to the announcement, the tool will also allow customers to potentially increase their tax refund and reduce their tax burden, thanks to commercial notices that will inform the user of the availability of tax savings opportunities.
The partnership between Gemini and TaxBit was already in the air
The Winklevoss brothers have invested in TaxBit since the beginning of this year. In January 2020, their family office - Winklevoss Capital - participated in a $ 5 million funding round for TaxBit. Gemini also obtained a benchmark report of TaxBit's business from the 2019 fiscal reporting period, a Gemini spokesperson said.
TaxBit's Tax Center Suite solution is the first crypto tax tool Gemini has ever implemented, a spokesperson for the exchange said. Launched in January 2019, TaxBit's platform supports over 2.000 currencies, according to its website.
Earlier this year, Taxbit with Uphold provided users with a first suite of tax services to monitor tax disadvantages or losses in real time when trading cryptocurrencies. The first phase of this was the issuance of 1099-B tax forms to all US residents, making Uphold the first crypto platform to provide 10.99-B tax forms.
TaxBit has done its part to enable widespread adoption of cryptocurrencies by automating the regulatory hurdle of tax compliance. Many cryptocurrency users have already started using its software independently and with popular exchanges like Gemini coming together, it seems a sore point in the confusion that pervades the crypto industry can be solved.
