Prominent cryptocurrency exchange Gemini announced its partnership with the tax compliance firm Taxbit on Thursday. This step was taken by the exchange to automate and optimize crypto tax reporting.
According to the announcement:
“When Tax Center Suite is fully implemented on Gemini, customers in the United States will be able to download a completed tax report that can be uploaded for use in a variety of popular tax filing software or handed over to an accountant in the same format that the IRS requires.”
Looking at the unclear atmosphere regarding crypto taxation in the US, many users have been left confused, and with TaxBit’s software, users will be able to track real-time tax impact on their crypto trades on Gemini. The Tax center suite will also provide tools to the customers to monitor and lower tax liability by using the exchange throughout the year.
Earlier this year, Taxbit with Uphold provided an industry-first suite of tax services for users to monitor their real-time tax liability or loss as they trade between currencies. The first phase of this was the issuance of 1099-B tax forms to all US residents, making Uphold the first crypto platform to furnish 10.99-B tax forms.
TaxBit has been doing its bit to enable widespread crypto adoption through automating the regulatory hurdle of tax compliance. Many crypto users are independently using its software and with popular exchanges like Gemini joining hands, it looks like one pain point among the crypto masses can be resolved.
