EY Introduces Tool for Reporting Cryptocurrencies on Taxes
Big Four auditing and professional services company Ernst & Young (also known as EY) has released a tool for accounting and preparing taxes on crypto holdings. This comes via a press release from the company published yesterday.
Called EY Crypto-Asset Accounting and Tax (CAAT), is designed to improve accounting and tax calculations for crypto transactions by digital asset holders both large (institutions who hold cryptocurrency) and small (everyday hodlers who trade on their own). CAAT will be available to customers who use EY TaxChat and companies who employ EY Private Client Services.
As per the release, CAAT can pull data regarding crypto transactions from “virtually all” major exchanges, consolidate data from different sources, and automatically generate reports, including tax returns. EY says that it has registered a substantial growth in the number of customers that own crypto assets.
EY partner and Global Blockchain Tax leader Michael Meisler said of the new tool has so far been a success among its clients:
“The initial validation we have received from the market has been phenomenal, but it only represents the beginning. EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”
In February, leading United States-based tax preparation service TurboTax reportedly partnered with CoinsTax, LLC in order to add crypto tax calculation to its suite of services, wherein users could directly import trading data from major exchanges. After all trades are calculated, the service generates a report that contains capital gains and ordinary income, which can be downloaded or uploaded into Form 1040 Schedule D.
In January, United States-based crypto exchange, Coinbase, added features for customers to report crypto trades on their taxes through an integration with TurboTax. Coinbase and Coinbase Pro users will reportedly have the ability to automatically import transactions into a special crypto section of TurboTax.