In October 2019, the Internal Revenue Service released its guidelines regarding the crypto-based tax. Around 150 million U.S. taxpayers will have to answer the question regarding the crypto assets. They must reveal whether they sold or bought as well as exchanged any cryptocurrency.
According to the IRS, a U.S. citizen should pay tax if a person either bought or sold the digital currencies. However, if someone received digital currency as a gift, they do not have to worry about a crypto-based tax.
Many companies are willing to create new products to attract crypto owners. One such product which is directly connected to Crypto-based tax is a new software created by CryptoTrader.Tax.
CryptoTrader.Tax is a software company from the U.S. state of Missouri. This company created a new product, which will make it easier to deal with cryptocurrency tax reporting.
Also, it is important to mention that in the U.S., the tax year is coming to an end; it means that crypto owners must provide information about their crypto assets.
Crypto owners and taxes
David Kemmerer, who is a CEO and co-founder of CryptoTrader.Tax made a comment regarding this software. Kemmerer stated that tax professionals should help their clients when it comes to dealing with crypto taxation.
The purpose of the crypto tax professional suite is to help companies, as well as certified public accountants and other professionals. This software will provide a step-by-step process description. As a result, it will be easier for companies to help their clients.
According to the software maker, its product allows us to automatically generate client tax reports by using transaction data imported into the CryptoTraderTax. Also, thanks to this software, companies will be able to manage multiple clients. The good news about this new software is that is free of charge for tax professionals.
Such products will make help to solve the problems for owners as well as authorities.