- Streamlines the aggregation and calculation of decentralized tax data to support clients’ tax reporting needs
- Integrates with upstream and downstream systems to support the new Form 1099 and Crypto-Asset Reporting Framework (CARF) requirements
- Complements other EY proprietary solutions, enabling a broad suite of services tailored to the digital asset ecosystem
LONDON, Dec. 16, 2022 /PRNewswire/ — The EY organization today announces an alliance between TaxBit, an industry-leading tax and accounting technology provider for cryptocurrency and other digital assets (e.g., non-fungible tokens (NFTs)), and Ernst & Young LLP (EY US) to help organizations meet tax reporting requirements for digital assets.
Regulators are starting to demand more formal reporting practices as companies are getting further involved in digital asset transactions. The EY–TaxBit Alliance provides organizations with a suite of solutions, along with services from EY US tailored to the digital asset ecosystem. This is intended to seamlessly help address tax reporting requirements (e.g., Internal Revenue Service (IRS) tax filings), meet regulatory deadlines and implement cryptocurrency and tax accounting software faster with less strain on business, technology and operations resources.
This alliance is part of the EY Digital Asset Tax Suite and enables the Digital Asset Customer Tax Operations solution, which combines TaxBit’s tax reporting software with EY tools such as the electronic Tax Form Validator (eTFV), Customer Tax Data Master (CTDM) and Withholding & Reporting Calculator.
The EY Digital Asset Tax Suite builds upon existing EY solutions, including the Blockchain Analyzer Tax (BAT) Calculator, and applies to the market participants including global cryptocurrency exchanges, emerging decentralized finance (DeFi), gaming platforms and first-timers.
Thomas Shea, EY Financial Services Crypto Tax Leader, Ernst & Young LLP, says:
“While we’re seeing a ton of progress in Washington, there’s still uncertainty amongst the taxpaying community. The EY Digital Asset Tax Suite attempts to bridge the current gap and assist those engaging the digital asset market in meeting their tax reporting obligations.”
The suite is composed of the following solutions and services:
- The EY Digital Asset Customer Tax Operations offering, supported by TaxBit, focuses on detailed information reporting, electronic tax validation, withholding, cost basis reporting and tax reporting.
- The EY Tax Analyzer for Digital Assets (TA-DA) serves as an interactive solution that simplifies tax reporting for digital asset-related transactions by directly pulling exchange and on-chain wallet data, such as trading, DeFi, gaming and NFTs.
- The EY Crypto and Payment Reporting service leverages an existing EY tool for Form 8300 e-filing. Under the new provisions in the Infrastructure Investment and Jobs Act, digital assets are required to report payments over $10,000 received in a trade or business.
- EY US also has a broad array of managed service offerings tailored for the digital asset ecosystem through the firm’s subject matter knowledge. These offerings include direct and indirect tax compliance and reporting, income tax and statutory accounting, payroll operations, entity compliance and governance and transfer pricing.
Mike Johnson, EY–TaxBit Alliance Leader, Ernst & Young LLP, says:
“The digital asset industry is a complex space that needs a comprehensive suite of services to adapt to the evolving regulatory requirements. Through our alliance with TaxBit, we are more ready to support clients with their digital asset tax reporting needs.”
Lindsey Argalas, COO, TaxBit, says:
“At TaxBit, we are focused on providing enterprises a single system of record to manage digital assets tax and accounting. Our alliance with EY US bolsters our solutions by integrating world-class expertise, services and support. We look forward to working alongside the EY US team to enable compliant digital asset adoption for the global economy.”
For more information, visit ey.com/alliances.
EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.
Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.
Designed by CPAs and tax attorneys, TaxBit is the leading tax and accounting enterprise solution for digital assets. TaxBit’s platform serves the industry’s top exchanges, institutional investors, governments, and individuals. TaxBit has raised over $235M from the world’s-top investors to enable widespread digital asset adoption by automating the regulatory hurdles of tax and accounting compliance at scale. TaxBit has HQ in Salt Lake City and Seattle.
View original content to download multimedia:https://www.prnewswire.com/news-releases/ey-announces-alliance-with-taxbit-to-support-tax-reporting-requirements-for-digital-assets-301704603.html