Uphold, the digital money platform that powers ‘anything to anything’ trades between cryptos, national currencies, metals, and more, is proud to announce that it leads the charge with compliant tax reporting for cryptocurrency, commodities, and other assets available on its platform. Uphold, has partnered with cryptocurrency tax software and accounting firm, TaxBit, to provide users with an industry-first suite of tax services for users to proactively monitor their real-time tax liability or loss as they trade between currencies, along with features that provide better visibility into the tax impact of capital asset transactions.
The first phase in this new offering was the issuance of 1099-B tax forms earlier this month to all US residents. Uphold is among the first digital currency platforms to furnish 1099-B tax forms. 1099-B tax forms track and report cost basis when available, making it easier for US users to prepare their IRS 8949 (the required tax form that reports taxable cryptocurrency transactions). TaxBit CEO Austin Woodward commented “after helping numerous taxpayers through audits due to 1099-K’s that report income, we are excited to help Uphold issue form 1099-B to all US users. Form 1099-B makes it easier for taxpayers to prepare their Form 8949 and eliminates the confusion and audits caused by 1099-K tax forms. 1099-B tax forms have long been the standard when it comes to reporting transactions involving capital assets.” This is representative of a new need for Americans to report taxes on cryptocurrency as a result of increased IRS guidance and scrutiny surrounding the asset class.
The need for better tax reporting became evident in Summer 2019 when the IRS issued tens of thousands of audits caused by cross-checking 1099-K tax forms against the income section of a taxpayer’s return. Uphold’s CEO J.P. Thieriot was personally audited by the IRS. “TaxBit is phenomenal. I got the (scary) Letter from the IRS, reaching back five years, across various exchanges. TaxBit solved my issue with unbelievable speed and competence. We are excited to be working with them,” Thieriot says.
Uphold and TaxBit are not stopping there when it comes to making it easier for users to report their cryptocurrency taxes. Uphold will be releasing full tax center suites within users’ accounts. No one wants to receive a 1099 during tax season and find out for the first time what they may owe in taxes. Uphold’s tax center suites give users real-time visibility into the tax impact of their transactions, allowing users to plan ahead and be prepared. Additionally, tax planning and optimization tools will be available to help users see the tax impact of transactions before they happen and gain insight into how to reduce their tax bill.