Ledgible — the makers of Crypto Tax Pro — introduced the Ledgible Crypto Platform, which allows tax professionals to make tax estimates on digital asset liabilities.
The software, which supports multiple integrations across different blockchains, exchanges and wallets, aims to help tax pros determine cryptocurrency tax liabilities and deliver that data to their own filing systems. It also produces an IRS Form 8949, among others, which can be directly imported into the practitioner’s filing system, where users can then apply their own tax and accounting solutions.
“Tools like Ledgible Crypto make it easy for tax professionals to connect their client’s exchange accounts and wallets to identify taxable transactions, calculate the correct tax gain/loss, and import the results directly into traditional tax packages,” said Ledgible CEO Kell Canty in a statement. “For those who need a bit more time, we are offering the ability to estimate crypto taxes in order to file an extension of taxes due with the IRS.”
The announcement comes at a time when the scrutiny of digital assets by tax authorities has reached new heights, with the IRS placing questions about cryptocurrency activity near the top of individual tax returns. A PwC report from January noted that the number of jurisdictions with cryptocurrency tax guidance has grown from about five in 2014 to almost 30 in 2021.
At the same time, the report noted a dearth of guidance in all but the most basic aspects of the field: Of the 19 issues named in the report, the only ones where the majority of jurisdictions had guidance were:
- Direct mining income;
- VAT/GST sales for trading payment tokens; and
- Calculations of gains and losses for businesses and individuals.
In contrast, only 7% of jurisdictions have guidance for nonfungible tokens, only 24% have guidance for initial coin offerings, and literally none have guidance for value-added tax, goods and services taxes, and sales taxes on staking income.