Missouri-based software maker CryptoTrader.Tax has launched a new production facilitating cryptocurrency tax reporting.

As the 2022 taxation twelvemonth comes to an end, the software is designed to help firms, certified public accountants and professionals counsel their clients about reporting their taxes from crypto in accordance with the taxation guidelines prepare out past the Us Internal Revenue Service (IRS). CryptoTrader.Tax announced the news in a press release on November. 25.

The new tool allows to automobile-generate client's tax reports

The newly released crypto revenue enhancement professional suite past CryptoTrader.Tax provides step-by-step process description for importing crypto transactions past clients, as specified on the website. The tool allows tax professionals to auto-generate client tax reports using transaction information imported into CryptoTrader.Tax, manage multiple clients and operate automated importing.

Since the IRS released its guidelines for crypto-based tax reporting in October, roughly 150 million American taxpayers will have to respond the question on Form 1040 whether they received, sold, sent or exchanged any virtual currency.

In the written report, CryptoTrader.Revenue enhancement stated that the IRS expects that roughly 12 million revenue enhancement returns should contain some form of crypto investment.

CryptoTrader.Tax CEO: there's an increased demand for automating crypto taxation reporting

David Kemmerer, CEO and co-founder CryptoTrader.Tax, stated that the new question on 1040 ways that all tax professionals not only take to ask their clients whether they had whatsoever crypto-related activities this twelvemonth but likewise must be set up to handle crypto revenue enhancement for clients. Kemmerer noted that their crypto revenue enhancement professional person suite follows increased demand from tax professionals:

"We're seeing that thousands of tax professionals are now looking for software tools to help them automate crypto revenue enhancement reporting for their clients. Nosotros are excited to launch our crypto taxation professional suite to provide a much needed solution for these professionals."

According to the written report, CryptoTrader.Tax already has thousands of users on its platform to date and has candy over $10 billion of crypto transactions over the past 2 years. The new software is complimentary-to-use for tax professionals, the report notes.

0.04% of revenue enhancement filers reported upper-case letter gains from crypto in 2022

On Oct. 9, 2022, the IRS issued its guidelines for crypto-based tax reporting. Co-ordinate to the new rules, U.S. persons are subject to U.S. taxation in case if they hold, sell or substitution digital currency equally well as if they receive digital currency in the course of salary or equally a result of a difficult fork. If U.Southward. people larn digital currency as a gift, there is reportedly no immediate tax. The IRS has reportedly not decided whether promotional airdrops should be treated every bit taxable to date.

Co-ordinate to a study by Credit Karma Taxation, data released ahead of the shut of the preceding tax year indicated that just 0.04% of tax filers were reporting capital gains from crypto investments to the IRS. Meanwhile, the number of Americans who own crypto reportedly almost doubled in 2022, from seven.95% in 2022 to 14.iv%, co-ordinate to a new survey published in October.