Cryptocurrency taxation has become a major focus in the United States where recently, with the Internal Revenue Service (IRS) clamping down on tax defaulters. The IRS released letters to over 10,000 crypto investors in June this year and later in October released another tax guidance to support the one published in 2014.
The recently released guidance which focused mainly on filing taxes from cryptocurrency airdrops and hard forks was of great importance in clarifying filing procedures from the first published in 2014, but some experts are of the opinion that the IRS does not seem to understand how airdrops and hard forks work.
Regardless, the service has indicated it will be releasing another guidance which will focus on the filing of tax information. This is a step to ensure that all U.S based crypto investors file their taxes correctly regardless of if the exchange holding their cryptocurrency portfolios are local or foreign. Also recently, the Commissioner of IRS, Charles Rettig said with the release of the latest tax guidance, there is no reason for any crypto investor to complain of clarity on filing taxes.
It is therefore very crucial for crypto investors to thoroughly understand how to do this and also get extra direction on how to do it right. Below are five platforms you can always visit to get the latest information on crypto tax filing in the United States in order to avoid the planned clampdown on tax defaulters. They offer uniquely different services and depending on your needs, these three are the best to cater to the needs of taxpayers in the crypto space.
Koinly is a crypto tax startup created to provide an all-round solution for crypto investors and holders seeking information on tax filing. Although it was created more recently than most, it has grown to have many loyal users due to its up-to-date information on the latest technology and information on crypto taxation. It provides access to several key information on crypto taxes including a crypto tax software and a detailed guide for filing crypto taxes in the United States.
It also provides information on how you can calculate your own taxes as well as how to minimize taxes on investments and earnings by accounting for fees. Koily also helps you to track your cryptocurrency with its advanced cryptocurrency tracker. Since it keeps track of original acquisition cost when you exchange cryptos among other things, it makes tax filing easier for investors as those are crucial information required for accurate tax filing. For those looking for cutting edge tax information in the U.S, Koinly may hold the answers to several confusions.
TokenTax is a crypto tax information platform known for its simplicity. Although not as recent as Koinly, it is still reliable for easy crypto tax filing when needed. Another major strength apart from making crypto tax filing extremely simple, is that it is the only platform that provides its services across all major cryptocurrency exchanges.
Through access to your crypto portfolio on exchanges, TokenTax will automatically generate the kind of forms required to file your taxes. It does this by importing such information from major exchanges with imports enabled. For those that are not enabled, trading data for the client needs to be uploaded for such forms to be generated. As everything is automated, taxpayers don’t have to worry about which forms to fill to ensure they file taxes correctly.
If you do not have much time on your hands and need your cryptocurrency tax calculated in minutes, look no further as Cryptotrader.tax is designed for this purpose. With this platform, traders can conveniently and accurately calculate their capital gain/loss and ensure they don’t pay more tax than they should, thus saving them money and time.
As its uses the same method of tax calculation as the professional tax companies, it is extremely reliable, with clients including top exchanges like Coinbase, Bittrex, Gemini, Binance, and Poloniex. With the current pace of technological advancement, filing taxes should be time-saving and Cryptotrader.tax provides that to save time for other activities.
These three platforms will provide you all that you need to succeed in filing your crypto taxes to avoid sanctions from the IRS.
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