- Cryptocurrency tax calculation received a bit of extra respectable due to EY CryptoPrep, EY’s new crypto tax calculation software program
- The software program integrates EY’s industrial consumer methodology and the newest steering from the IRS
- Using EY CryptoPrep doesn’t make you immune from an IRS investigation
EY, the auditors at present entangled within the QuadrigaCX affair, have expanded their cryptocurrency affiliation by creating EY CryptoPrep, a bit of software program that goals to make your crypto tax calculations painless and simple. EY CryptoPrep makes use of your cryptocurrency trade transactions alongside any extra trades you need to create an 8949 tax report so that you can submit on the finish of the tax yr, taking the strain away from you and your calculator.
Established Name Boosts Cryptocurrency Tax Options
EY boasts that CrytoPrep makes use of the identical methodology that the corporate makes use of with its industrial shoppers and integrates the newest IRS steering, which shall be a aid to those that have been left scratching their heads by the ever altering pointers. The firm additionally says that EY CryptoPrep will solely ask for minimal figuring out data all through the method, which shall be excellent news to those that wish to retain no less than some parts of their crypto privateness. However, contemplating that the software program wants paying for and they’ll want sure data to fill out your 8494 correctly, there received’t be a lot likelihood of maintaining something vital withheld.
IRS Could Still Come After You
Calculating cryptocurrency tax is notoriously troublesome, with an nearly unimaginable burden of proof placed on merchants by the IRS at occasions. Numerous crypto tax aids have sprung up in recent times, from use-at-home software program packages to firms providing crypto-specific tax providers, however the reality stays that there’s nonetheless a component of capturing at a transferring goal about crypto taxes.
The presence of a longtime agency like EY within the house adjustments the cryptocurrency tax sport a bit of, with merchants extra more likely to belief their output than different unknown names. However, the actual fact stays that EY CryptoPrep can solely work with what knowledge it’s given, and if the IRS thinks that you simply’re leaving out earnings then there’ll be a letter by your door it doesn’t matter what software program you employ.