Engiven, a Bitcoin donation platform, has launched a tax form and appraisal service to make tax reporting easier for cryptocurrency donors and organizations. The platform will provide a free appraisal to crypto donors who give $5,000 or more.
The Engiven platform now allows NGOs and donors to prepare the Internal Revenue Service (IRS) tax form automatically, according to the company’s announcement on Tuesday.
According to Engiven, if crypto gifts of $500 or more are exchanged for US dollars, nonprofits must file IRS Form 8282, while donors must file IRS Form 8283 with their tax return if the donation is $500 or more.
The Engiven platform puts donation data into IRS tax forms automatically and sends the finished form to the organization to sign and file. Engiven will also provide a free assessment to any bitcoin contributors who donate $5,000 or more in cryptocurrency through its platform.
Donors who wish to gift cryptocurrency valued $5,000 or more must have the cash assessed by a competent expert. According to Tony Oommen, vice president of the public charity Fidelity Charitable, a competent crypto valuation for a $5,000 donation can cost anywhere from $100 to $600.
The new tax capabilities and services on Engiven, according to Engiven CEO James Lawrence, seek to assist donors and charities focus on their purpose by automating the tax form creation process.
“With tax season approaching, we want to make sure that Engiven donors and nonprofits have the pre-filled tax forms they need to comply with IRS laws for Bitcoin donations,” Lawrence added.
About Engiven
Engiven, a crypto contribution platform founded in 2018, is one of the largest in the United States, facilitating crypto donations for over 400 religious and non-profit organizations, including the Salvation Army charity.
In February, Engiven teamed with the United States Figure Skating Association, the sport’s national governing body, to assist it permit donations in cryptocurrencies such as Bitcoin (BTC).
Engiven’s newly introduced crypto tax-focused solutions are timed to coincide with the upcoming tax deadline, which is April 18 for U.S. citizens.
Crypto users could be paying “thousands of dollars per year” on crypto tax forms if they don’t use specialist automated tax reporting services, according to leading crypto tax compliance business TaxBit.
