Financial news

EY forges an alliance with TaxBit to help those engaging the digital asset market meet their tax reporting obligations.

TaxBit, a tax and accounting technology provider for cryptocurrency and other digital assets, and Ernst & Young LLP (EY US) will help organisations meet tax reporting requirements for digital assets.

The EY–TaxBit Alliance provides organisations with a suite of solutions, along with services from EY US tailored to the digital asset ecosystem.

“While we’re seeing a ton of progress in Washington, there’s still uncertainty amongst the taxpaying community,” said Thomas Shea, EY financial services crypto tax leader, Ernst & Young LLP. “The EY Digital Asset Tax Suite attempts to bridge the current gap and assist those engaging the digital asset market in meeting their tax reporting obligations.”

Lindsey Argalas, COO, TaxBit, also says: “At TaxBit, we are focused on providing enterprises a single system of record to manage digital assets tax and accounting. Our alliance with EY US bolsters our solutions by integrating world-class expertise, services and support. We look forward to working alongside the EY US team to enable compliant digital asset adoption for the global economy.”

The Alliance

The Alliance’s suite includes the following solutions and services:

• The EY Digital Asset Customer Tax Operations offering, supported by TaxBit, focuses on detailed information reporting, electronic tax validation, withholding, cost basis reporting and tax reporting.
• The EY Tax Analyzer for Digital Assets (TA-DA) serves as an interactive solution that simplifies tax reporting for digital asset-related transactions by directly pulling exchange and on-chain wallet data, such as trading, DeFi, gaming and NFTs.
• The EY Crypto and Payment Reporting service leverages an existing EY tool for Form 8300 e-filing.
• EY US also has a broad array of managed service offerings tailored for the digital asset ecosystem through the firm’s subject matter knowledge. These offerings include direct and indirect tax compliance and reporting, income tax and statutory accounting, payroll operations, entity compliance and governance and transfer pricing.