Accounting Giant Ernst & Young Launches New Application for Calculating Cryptocurrency Taxes

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Thu, 06/18/2020 - 18:16
Alex Dovbnya
Ernst & Young expands its portfolio of digital business with a tax reporting app for cryptocurrencies
Cover image via stock.adobe.com
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‘Big Four’ auditor Ernst & Young has introduced a new application that is supposed to make it easier for cryptocurrency holders to grapple with their taxes, according to the company’s recent press release

EY’s chairwoman of tax services Marna Ricker claims that there was a growing demand for this new product.

Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes.

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Providing cryptocurrency tax assistance  

The app, called EY CryptoPrep, assists its users in calculating crypto-related gains and losses that have to be reported on Form 8949.     

EY’s customers can connect the app to different exchanges to collect data about all their transactions, and it will automatically pick corresponding tax rules and perform all the number-crunching.

It is worth noting that it also applies to previous tax liabilities, not just the current tax year.

This kind of convenience comes at a hefty price -- those with more than 100 transactions will have to shell out $399.  

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Exploring blockchain-based use cases

According to Chirag Patel, EY foundry leader, the launch of the app represents the latest effort of the accounting behemoth to expand its digital businesses: 

EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients.

As reported by U.Today, EY also piloted EY Blockchain Analyzer, its auditing software for digital assets, back in April 2018.

This March, its Japanese branch an anti-counterfeiting blockchain service for spotting fake sake.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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