Digital Currency Revolution Series: Integration of American Taxation Software for Cryptocurrencies

The pioneer cryptocurrency (Bitcoin) and its counterparts sensed eye-catchy market-capitalization growth in the recent past, that puzzles quite a few investors and their CPAs struggling with uncertainties (as deadline nears, April 15thfor filing taxes in the United States) and surprises during tax season owing to many reasons (predominantly, lack of clarity in the regulatory framework). Some returns were given the extension, awaiting further guidance from the IRS, while other taxpayers found themselves faced with an unexpectedly large tax bill as a result of misconceptions surrounding how these transactions are taxed.

Amid these movements, the Cryptocurrency-targeted tax software CryptoTrader.Tax has integrated with leading American tax-software Intuit TurboTax.

The integration will purportedly allow users to export tax calculations from CryptoTrader.Tax to the TurboTax filing software, which will supposedly make the filing process easier. 

Ernst & Young also came up with an accounting and auditing tool, very recently, which is meant especially for accounting and preparing taxes on cryptocurrency holdings. EY introduced a new tool in the name of CAAT (Crypto-Asset Accounting and Tax) which enables both institutional and retail investors to compute and prepare taxes exclusively on cryptocurrency holdings.

CryptoTrader.Tax co-founder David Kemmerer said: “You simply import your cryptocurrency trades into the platform using the technology we have built. The software will automatically crunch your capital gains and losses numbers and generate the necessary tax documents including the IRS form 8949.”

The Internal Revenue Service (IRS) is the agency entrusted for tax collections and interrogating tax evaders, as the cryptocurrencies are to be treated as the assets tax computation. 

Currency Strength Index: FxWirePro's hourly BTC is at 138 (bullish), the hourly USD spot index is inching towards 82 levels (bullish) while articulating at 11:40 GMT. 

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