Accounting firm Ernst & Young (EY) has rolled out a new digital currency tax tool to help traders file their digital currency-related tax forms. CryptoPrep collects information on a user’s trades made on and off major exchanges and compiles the information into a downloadable 8949 tax form, which can then be filed during tax season.
Many people have trouble when it comes to filing their digital currency taxes. Even the IRS is looking for a digital currency tax professional to help them monitor U.S. citizens’ tax filings and make sure that individuals are correctly filing their digital currency-related taxes.
“Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes,” said Marna Ricker, EY Americas Vice Chair of Tax Services. “The EY Foundry, our internal corporate venturing unit, created EY CryptoPrep to modernize the crypto tax accounting process.”
EY created CryptoPrep to simplify the accounting process for individuals who need to file digital currency-related tax forms. The account firm said they are also seeing more of their clients’ trade crypto, which indicates that interest in the digital asset space at an institutional level is increasing.
Is it cheaper than your accountant?
EY’s CryptoPrep allows individuals to pick amongst four packages: an option for individuals who have made between 1-20 digital currency trades in the year ($49); an option for individuals who have made between 20-100 digital currency trades in the year ($99); an option for individuals who have made between 100-999 ($399); and an “individual pricing” plan for individuals who may not fit the description of EY’s other packages.
“EY CryptoPrep expands our innovative portfolio of successful new digital businesses,” said Chirag Patel, EY Foundry Leader. “EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients.”
EY is looking to stay on the cutting edge of innovation and they know that to make that a reality they need to provide blockchain and digital currency-related services such as their latest tax tool. As the landscape for the blockchain and digital currency industries continually evolves, it is beneficial to provide services and resources that help others transition into the new digital age that we now live in.