ZenLedger, which provides digital asset tax software and blockchain analytics, announced it has renewed its contract to provide the Internal Revenue Service with forensic accounting and tax solutions tailored for use in cryptocurrency-oriented criminal and civil investigations.
As a data privacy measure, the IRS will provide its own data to ZenLedger independent of the company’s client base.
The move indicates the increased attention that agencies like the IRS have placed on cryptocurrencies and other digital assets as the sector evolves. The IRS has enacted a number of initiatives aimed at cracking down on abuse, such as the recent Operation Hidden Treasure, as well as reworking current resources, such as moving questions about cryptocurrency activity from the Schedule 1 to the top of the Form 1040.
Dan Hannum, chief operating officer at ZenLedger, noted that these efforts at the IRS are already bearing fruit.
“The IRS has a mandate to collect $30 billion in crypto tax revenue over the next 10 years and ZenLedger is poised to be the leading provider of software services. We saw the highest compliance rates among consumers and enterprises filing their crypto taxes for 2021 and expect to see the compliance rates grow exponentially year over year moving forward,” he said in a statement. “We are thrilled to renew our contracts with the IRS, and look forward to securing more strategic contracts both domestically and internationally as ZenLedger continues to lead the way in crypto compliance.”