Crypto Tax Calculator Extends Reporting Services to FTX Crypto Exchange Users
Crypto Tax Calculator, a tax calculation software designed for crypto users, recently completed the integration of its services with the FTX cryptocurrency exchange. The integration will allow FTX traders to reconcile their crypto taxes without much hassle amid the ongoing crackdown by tax authorities around the world.
In recent months, tax authorities such as the US Internal Revenue Service (IRS) have stepped up their efforts to catch crypto tax evaders. Some of the actions the IRS has taken include sending “John Doe” notices to large crypto firms and exchanges such as Circle and Coinbase. The IRS has also requested $ 32 million in its 2022 tax budget for the sole purpose of strengthening crypto tax enforcement.
Notably, it’s not just the United States where tax authorities are slapping the whip on crypto investors and traders. Asian giants like South Korea are in the process of introducing taxes on crypto assets. The country is set to move forward with its proposed tax regime in which crypto assets will be taxed as intangible property. South Korea’s Finance Minister Hong Nam-ki previously confirmed to Reuters that,
“It is inevitable, we will have to impose taxes on gains from trading virtual assets”,
Solving the nightmare of crypto tax returns
The crypto ecosystem is a relatively new niche where most of the participants are still finding their way. One of the biggest nightmares in this industry is tax reporting, as most jurisdictions have yet to define a tax regime for cryptoassets. This cumbersome process has discouraged many people from investing in crypto while others are waiving their obligation to file taxes on crypto earnings.
It seems that there is some relief for both groups from the innovation of software such as Crypto Tax Calculator. This tax reporting service will now allow FTX users to take advantage of its reporting features. Some of the services offered include automatic categorization of transactions. Users simply enter or integrate data feeds, leaving the tax calculator to do the rest.
In addition, the crypto tax calculator can generate financial reports that date back to 2013. These accountant friendly reports reduce the work of crypto users and accountants since they are easily understood. Notably, the crypto tax calculator services support 21 tax jurisdictions, including the UK, US, and Canada, among others.
The platform also offers direct CSV and API files to facilitate the integration of crypto ecosystem data feeds. Other important exchanges supported by the crypto tax calculator service include Coinbase, Binance, and Bitfinex.
Cryptocurrencies have enormous growth potential in the future of financial ecosystems. However, this nascent industry must follow the line in complying with local and global tax regimes. Platforms like crypto tax calculators make it easier for crypto stakeholders to comply with taxation, creating an environment that works with authorities like the U.S. IRS and other tax authorities.