Taxbit has launched the Taxbit Network to make available crypto tax forms for free. Most of the leading crypto businesses such as Paypal, Gemini and others have joined the network.
TaxBit, a cryptocurrency tax compliance service, is attempting to bring together big industry players such as Coinbase and Binance.US within one network to enable free 2021 tax forms for users.
The crypto tax software company unveiled the TaxBit Network on Tuesday, a certified network aimed at democratizing crypto tax calculations and tax forms by giving all network users relevant tax reporting data for free.
PayPal, Binance.US, Coinbase, FTX.US, Gemini, Celsius Network, Blockchain.com, Venmo, Paxos, OkCoin, and BlockFi are among the approximately 20 prominent crypto-related organizations in the TaxBit Network at launch. TaxBit’s VP of marketing Michelle O’Connor said the network will be adding new organizations on a regular basis.
Every user of a certified TaxBit network company will be able to receive free and accurate 2021 tax forms as part of the project. A handful of collaborating sites will also provide a simple TaxBit sign-up within their apps to make access to tax reporting tools even easier.
“A cost will apply to retrieve tax forms from out-of-network platforms if a user has taxable transactions on platforms not part of the TaxBit Network,” TaxBit explained.
The new initiative intends to break down barriers to widespread crypto adoption by assuring that crypto users in the United States may stay tax compliant without spending a lot of money.
“Historically, the cost of creating cryptocurrency tax forms ranged from hundreds to thousands of dollars each year, depending on whether people utilized do-it-yourself software or hired an accountant,” according to the release.
“Rather than being limited to tax season, our portfolio performance and tax optimization tools enable year-round decisioning. With market volatility so common, we offer tax-compliant options for regular investors to optimize their holdings through tax-loss harvesting “According to O’Connor.
The company’s participation in the TaxBit Network, according to US CEO Brian Shroder, is a critical step in the company’s commitment to safety and compliance, especially after President Joe Biden signed the infrastructure bill into law in November.
TaxBit is a prominent crypto-focused tax compliance firm that brings together tax attorneys and software developers to create software that makes crypto tax filing easier and more automated.
Backed by Winklevoss twins’ family office, TaxBit has seen notable growth recently, securing a $130 million raise at a $1.3 billion valuation in August 2021.