Bitstamp has chosen Sovos to be their automatic crypto government levy reporter. The cryptocurrency trade platform will utilize Sovos’ system to make analogue and digital tax payment as well as automatic tax reports that are timely regulatory compliance. The report has been shared to public domain by iHold prior to upcoming United States filing season schedule in January.
The head of Bitstamp US, Hunter Merghart, said that the tax software program, Sovos, makes solving complicated tax reports a walk in the park as they have automated bots to do it. They do it at both state and federal levels giving Bitstamp staff ample time to work on other projects to serve its market.
Sovos is contracted to supply 1,099 crypto tax forms as part of their partnership. This is happening simultaneously as strictness and scrutiny increases at the IRS.
Following in the footsteps
iHodl further reiterated that Gemini, another crypto market, also employed the services of TaxBit, a tax service provider, to work on their tax calculation and reporting on behalf of the company and its clients.
Due to eased tax filing procedures, clients served by Gemini situated in the United States can now upload an already filled tax report for several filing programs to their devices or physically deliver it to an accountant in a US IRS presentation.
Other companies that Bitstamp is joining in this advancement include Paxos and BlockFi, which are using Sovos to file tax reports of huge amounts. Sovos have proved their trustworthiness and competence; it is also the leading tax filing agency owned privately and is flexible enough to adapt to the needs of an exchange platform and its clients.
Internal Revenue Service(IRS), on the other hand, is hesitating to give a precise explanation and guide to the 1,099 forms demands, exchanges are burdened with this task as they try educating their clients on this issue. An exchange platform should contact a tax filing software as it is crucial when dealing with many transactions in the crypto market to avoid disputes accompanied with tax compliance.
An official at Sovos, Paul Banker, reported that with the development and spreading of crypto and crypto markets, it has increased inquiry from IRS and to keep up with IRS demands, Bitstamp has to get a tax filing agency like Sovos to smoothen the process.