EY Wants Crypto Tax Calculations Easy With New Tool
EY, a “Big Four” consulting company, has recently launched a tool that helps digital currency users when it comes to their accounting and tax calculations. The software solution has the official name of EY Crypto-Asset Accounting and Tax (CAAT). Here is everything about it in a nutshell.
Assisting Crypto-Related Tax Processes
According to the official report, CAAT is specifically designed in helping U.S.-based customers prepare their respective Internal Revenue Services (IRS) tax returns, particularly those that have something to do with cryptocurrency assets.
The aforementioned software has the ability to source transaction information directly from all major exchanges. The company added that it can pull data together from multiple sources and, at the same time, automate production of various dashboards and/or reports. And perhaps the most popular one among these is none other than tax returns.
CAAT’s goal is to serve both institutional clients and individuals. EY said that the software solution has experienced “significant” growth in terms of the number of customers that hold and trade digital currencies.
When viewed at a retail client perspective, CAAT is quite advantageous for high net worth individuals serviced by the company. It can also be leveraged by users of the mobile tax preparation service called EY TaxChat, which helps in pairing users with experienced and licensed EY professionals. The latter, on the other hand, are responsible for preparing individual tax returns.
The consulting firm further claimed that the software solution can benefit greatly a lot of asset management companies. This is due to the fact that cryptocurrency assets continue to show signs of evolution and utility increase.
Michael Meisler, a partner and global blockchain leader at the consulting company, said based on the initial validation they received from the market, the software solution has shown some phenomenal results. It should be noted, however, that the results only represent the start of what could be a much wider scope.
The Need For Such Software
With the calculation of digital currency taxes being a typically daunting and frustrating task, there is no doubt about the increase in the production of tools that could assist with the process. As a matter of fact, the titular crypto exchange Coinbase recently integrated TurboTax, which is the tax-filing software developed and offered by Intuit Consumer Tax Group. And much like EY, Coinbase is offering the software to its U.S. customers.
During that time, the crypto exchange also managed to integrate Cointracker. The latter, in particular, is basically a Y Combinator-backed cryptocurrency and Bitcoin tax software manager. Interestingly, this was developed by former Google employees in an attempt to help clients.