‘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.
Crypto Market Prediction: XRP to Face Its Most Intense Battle, Shiba Inu (SHIB) $0.00002 Closer, Can Ethereum (ETH) Reclaim $4,000?'XRP Sits at the Center of Everything Ripple Does,' Garlinghouse SaysBinance's CZ Finally Pardoned, $506 Million in XRP Moved in One Go, Satoshi-Era Bitcoin Whale Awake After 14 Years — Crypto News DigestBREAKING: Ripple Prime Officially Introduced
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.
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.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team