How Tax1099 Automates Cryptocurrency Tax Reporting For Crypto Exchanges

Learn how Tax1099 optimizes your crypto tax reporting and helps you accelerate reporting accuracy.

Crypto exchanges observe a high volume of transactions throughout the year. With regulatory bodies like the IRS paying special attention to cryptocurrency transactions and nabbing tax evaders in the crypto industry, crypto exchanges are looking at complying with the IRS and filing the necessary tax returns to avoid audits and penalties.

These crypto exchanges are in search of an automated solution that would address bulk transaction data migration issues and resolve inconsistencies in regulatory reporting.

If you’re someone who represents a crypto exchange, let us quickly take you through Tax1099 – an authorized agent of the IRS, which drives smart capabilities to enable crypto exchanges like yours to maintain regulatory reporting and establish tax compliance. 

The following will discuss in brief how a regulatory reporting and tax compliance enabler like Tax1099 automates crypto tax reporting for crypto exchanges.

Bulk Filing 

Crypto exchanges can e-File the necessary IRS returns, such as 1099-K, 1099-B, 1042-S, Form 5498, and more with Tax1099. With our bulk e-File solutions, crypto exchanges can plan their e-Files ahead, import the transaction data to Tax1099, and our dynamic platform will appropriately process the data to accelerate form completion. Validate the reported information and e-file thousands of forms at once with Tax1099.

TIN Matching API

Reporting accuracy is just as important as filing before the deadline. When you do not report the correct TIN, the IRS tends to reject your returns, assesses B-Notices, and penalizes your crypto exchange for incorrect TIN. Each incorrect TIN could cost you at least $250 in penalties. 

TIN Matching API from Tax1099 would enable you to validate all your payee TINs at once so that you report validated and correct TINs in your tax returns. This saves you time and accelerates TIN reporting accuracy.

Accounting-First Solutions 

Tax1099’s e-filing solutions have been designed in such a way that businesses, accounting teams, paid preparers, and licensed CPA’s, and others can easily access and e-file their IRS returns easily.

However, we understand that most businesses have their internal accounting teams in charge of their tax duties. This is why our features, such as Rights Management, Workflow Management, API solutions, Bulk filing, e-File schedules, and more are designed to accommodate the reporting requirements and review-approval needs of accounting teams. 

Dynamic Integrations 

Tax1099 is integrated with dynamic data management solutions like Zoho Books, Excel, Bill, Entrata, QuickBooks, Fresh Books, and more, which enable you to import your bulk data and make changes to your data in real-time. 

Further, form completion becomes easier when you enable tax-sensitized applications on Tax1099. The possibilities are endless.

Secure eFiling 

Security is the number one reason why a lot of people are investing in cryptocurrency. The inherent nature of crypto transactions is secure, thanks to the blockchain technology that backs the virtual currency. Now, don’t you think your crypto tax data also deserves this kind of security?

Tax1099 is encrypted with bank-grade security. With the 256-bit Advanced Encryption Standard, Tax1099 is encrypted end-to-end to give you peace of mind. Your data is yours and it is going to stay that way.

Further, we audit and “scan” our virtual wires and e-transmission funnels to ensure that there is no room for data interceptors and security threats. 

Tax1099 For Crypto Tax Reporting

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