TaxBit Simplifies Cryptocurrency Taxes with Innovative Reporting and Audit Tools
Leading cryptocurrency tax software firm TaxBit simplifies the process of filing taxes to just a few clicks for cryptocurrency traders. TaxBit offers cryptocurrency holders and investors a slew of robust services including the easy calculation of profits, losses, tax liabilities, and generation of IRS-compliant tax forms, to make crypto trading a pleasant experience for traders.
Crypto Taxes Made Easy with TaxBit
Filing taxes doesn’t particularly rank high in the list of tasks one would ideally want to do. Add to it the element of cryptocurrencies, and the process starts sounding all the more cumbersome. Fortunately, TaxBit is here to relieve crypto traders from this ordeal.
Headquartered in Salt Lake City, Utah, TaxBit’s is the only cryptocurrency tax software founded developed by industry-leading blockchain CPAs and cryptocurrency tax attorneys. A leader in the cryptocurrency tax software space, TaxBit provides tax solutions for more than 4,200 cryptocurrencies, equities, commodities, and all fiat currencies.
TaxBit reduces the process of filing taxes to just a few clicks. TaxBit enables its users to connect their exchanges via its read-only API keys to the software in less than a minute. This rapid process allows TaxBit to pull the user’s entire cryptocurrency transaction history and feed the data into its tax engine.
Once the trading data has been fed into the engine, users can then see the real-time tax impact of their digital currency transactions. They can also download their yearly tax reporting forms to facilitate quick tax filing with the tax regulators.
Innovative Tax Filing Features
As mentioned earlier, TaxBit’s innovative user interface has been carefully designed by top blockchain CPA’s and cryptocurrency tax attorneys. TaxBit’s cryptocurrency tax engine holds the capacity to process millions of transactions with the highest accuracy.
Most notably, TaxBit takes immense pride in providing a fully immutable cryptocurrency tax audit trail to its users. This essentially means that during an audit, the user’s CPA or IRS investigator can narrow-down into any single transaction to determine how exactly their cost-basis and subsequent gains or losses were calculated.
The tax software provides its users with a suite of ready portfolio analytics tools that can help them track the performance of their crypto holdings throughout the year. Thanks to its dynamic tax-reporting mechanism, TaxBit displays users’ real-time portfolio metrics as and when they trade rather than producing a tax-form at the end of the financial year.
Additionally, TaxBit gives its users the option to calculate individual tax rates – both federal and each state – for their gains or losses so they can have a fair idea about the estimated total tax liability or refund.
Last but not the least, with TaxBit, users can generate one-click IRS 8949 cryptocurrency tax forms. TaxBit users are only required to connect their exchanges to the software to generate and download the IRS cryptocurrency tax forms in their account. Its Plus and Pro plans allow users to retrospectively amend prior years (up to 2014) tax forms for cryptocurrency transactions.
Commitment to User Privacy and Security
TaxBit treats user security and privacy with the utmost respect. This shows in its various security mechanisms reviews to date.
As TaxBit only gains access to read-only API keys, the platform, essentially, has access to view a user’s crypto transactions and not their actual digital assets. Basically, it means that TaxBit has absolutely zero access to view a user’s crypto portfolio or any data pertaining to their actual crypto holdings.
This privacy-preserving mechanism ensures that in the hypothetical event of a hack, the perpetrators would only be able to view a user’s transactions and not their total crypto holdings.
It’s also worth highlighting that TaxBit stores no user personal information at all including their social security numbers or tax identification numbers.
TaxBit has cemented itself as a pioneer in the cryptocurrency tax filing space. Having partnered with various leading cryptocurrency exchanges, TaxBit enjoys goodwill in the rapidly growing cryptocurrency industry.
Backed by some of the most influential and reputable VC firms in the fintech and crypto space, including the likes of Peter Thiel’s Valar Ventures and Winklevoss Capital, TaxBit is playing a significant role in shaping the tax facet of the cryptocurrency industry as we know it.