One of the top big four accounting firms EY has just launched a crypto tax service for calculating the taxes imposed on cryptocurrencies. Ernst & Young announced the new service as we are reading more in the latest crypto regulation news.
Traders can use EY CryptoPrep to get to know the tax percentage when filing taxes on their crypto trades. EY’s service came after the increased pressure from the IRS to tax the capital gains form crypto trading and the top big four accounting firms launched the service of its in-hour crypto tax service CryptoPrep. The service is fully automated and it is a web-based product that will assist traders in filing taxes. Traders in the US will be able to utilize the newest crypto tax service from one of the major accounting firms EY when filing the taxes with the IRS.
Ernst & Young as one of the biggest accounting firms launched EY Crypto Prep which is a self-service application that will calculate taxes on crypto gains and losses as well. EY CryptoPrep is a software-as-service product which provides the users with an automated crypto tax engine according to the press release from the company. Marna Ricker, the vice-chair of EY Americas tax services, said that the service was the best answer to a growing need to address the evolving complexity around filing taxes. The EY Foundry leader Chirag Patel noted CryptoPrep showcased the company’s commitment to addressing the needs of the clients.
While the newly launched service does not affect filed taxes with the IRS, it will aggregate the users’ transaction history and produces capital gain and losses calculations which are needed to complete the IRS Form 8949. Now, the users can provide EY Cryptoprep with the access API keys from exchanges and enable the service to access automatically the history of transactions. The service also allows the users to enter any additional off-exchange transactions manually. The company also noted that they don’t support direct imports from crypto wallets.
The newly launched services come at a perfect time where companies are trying to follow the US regulations while larger institutions in traditional markets are entering the crypto industry. with the KYC requirements from the EY, we will yet to see how the privacy-conscious market will accept this service.
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