Cryptocurrency exchanges totaling more than 500 are now obliged to be submitted as investors’ income to the Internal Revenue Service for the 2023 tax season as the result of the 2021 Infrastructure Investment and Jobs Act, according to Nathan Jones, senior vice president and general manager of the public sector division of TaxBit.
“To help ease the transition, the IRS has contracted with TaxBit, the crypto tax leader, as they try to make sense of America’s crypto tax collection. TaxBit is concentrating on catering to crypto enterprises first of all,” Jones commented.
TaxBit is a company that intends to ameliorate questions and doubts surrounding taxes and accounting about the growing digital economy through its software services.
Its platforms are aimed to help corporate institutions, government agencies and individuals navigate new laws that have begun to regulate and systematize the up-and-coming forms of currency.
The Draper, Utah-based organization’s offerings include a core accounting suite, customer management suite and form issuance. Their team has also developed a real-time ERP accounting platform for commodities, equities and other digital asset investments.
“The TaxBit Network enables users to easily integrate their cryptocurrency exchange, DeFi, and NFT data from over 500+ sources, see their tax calculations line-by-line, and download completed IRS Forms 8949 and Income reports,” Jones elaborated.
Jones came to TaxBit in February after nearly two decades with Red Hat. His appointment was part of the former company’s efforts to enlarge its presence with federal government clients.
In April, Jones shared his perspective on President Biden’s executive order on digital currencies.
“Although many policymakers historically have been hesitant to adopt digital assets, the EO is a signal that the Biden administration wants the U.S. to embrace digital assets as a source of financial innovation,” Jones told ExecutiveGov.