‘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.
Ripple Could Have Sold as Much XRP as It Wanted, CTO SaysCrypto Market Prediction: Will Ethereum's (ETH) Christmas Be Bullish? Bitcoin (BTC) Hides Its Real Power, Did XRP Just End 160-Day Bloodbath?Race to $5,000: Gold Takes Massive Lead Over ETHRipple Moves $120 Million in XRP, Shiba Inu (SHIB) Burn Rate Down 100%, Cardano and Solana to Build Cross-Chain Bridge — Crypto News Digest
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.
Advertisement
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