The cryptocurrency tax compliance company TaxBit is working to bring together leading industry companies such as Coinbase and Binance.US within a network to enable free 2021 tax forms for users.
The crypto tax software provider announced Tuesday the launch of the TaxBit Network, a certified network that aims to democratize crypto tax calculations and tax forms by providing the necessary data for tax return to all users of the network for free.
The TaxBit Network at its launch includes some 20 major companies related to cryptocurrencies in the United States, including firms such as PayPal, Binance.US, Coinbase, FTX.US, Gemini, Celsius Network, Blockchain.com, Venmo, Paxos, OkCoin, and BlockFi.
As part of the initiative, All users of a certified company in the TaxBit network will be able to receive free and accurate tax forms for 2021. In addition, several participating platforms will incorporate a quick TaxBit registration within their applications to simplify access to tax information tools.
“If a user has taxable transactions on platforms that are not part of the TaxBit Network, a cost will be applied to retrieve tax forms from off-network platforms”, pointed out TaxBit.
The new development aims to remove barriers to adoption of cryptocurrencies in general, ensuring that cryptocurrency users in the US can comply with taxes without spending tons of money. “Historically, the process of generating cryptocurrency tax forms cost individuals hundreds to thousands of dollars per year, depending on whether they were using DIY software or hiring an accountant,” TaxBit said.
Binance.US CEO Brian Shroder noted that the company’s participation in the TaxBit network is a crucial step in its commitment. with security and compliance, especially after President Joe Biden signed the infrastructure bill in November.
TaxBit is a leading cryptocurrency-focused tax compliance firm that brings together tax attorneys and software developers to build software that simplifies and automates the cryptocurrency tax filing process. Backed by the Winklevoss twins’ family office, TaxBit has seen remarkable growth recently, securing an increase from $ 130 million to a valuation of $ 1.3 billion in August 2021.
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