Earnest and Young have debuted in the crypto industry by launching their crypto asset accounting tool (CAAT). The tool will help in tax calculations and accounting of crypto transactions. The tool will make the payment of the cryptocurrency taxes lot more manageable, as per the company announcement made on 4th of March.
The CAAT launched by EY will make the tax calculation of the digital assets lot more effective and easier. The tool will be useful for both individual and institutional customers. The institutional customer who has cryptocurrency in their balance sheet and the single customer who trade crypto will be benefited by the tool. The clients using “EY TaxChat” and “EY Private Client Service” will have access to the new tool.
Looking at the growing number accounting firm getting into the blockchain and crypto services, the US has accepted CAAT as EY stated strategy for leading the blockchain related industry and services throughout the world.
The traders who are trading on various cryptocurrency exchanges, this tool will be extremely helpful for them as it will collect data from almost all the major exchanges. The data then will be transformed into a comprehensive report that will include the IRS Tax return. The increasing crypto trading has made it essential to have a tool like this that can make the filling of taxes for the cryptocurrencies hassle free.
The tool is developed EY by integrating technological assets, patents and other EY processes. The firms have reported an increase in the number of clients those trades crypto assets. The EY tool will benefit the customers who are particularly in the asset management firms. Over time high net worth individuals will get the advantage of the product.
The Tax calculation software TurboTax Online, of US, has joined their hands with CoinsTax for the cryptocurrency tax calculation. Their service will allow the user to add trading data to the software directly from significant exchanges.
The US is also passing through some significant developmental changes in terms of crypto tax. Ohio has permitted the taxpayers to make tax payment using their major cryptocurrencies, mostly Bitcoin. The state funds office has set up an online service for the tax payment using cryptos. They have allowed the user to pay for 23 diverse taxes using cryptocurrency.
Meanwhile, the major exchange Coinbase has also allowed their traders to claim taxes for their crypto trades. The service is only restricted to the customers of the US.