Wolters Kluwer Tax & Accounting has partnered with CoinTracker and Verady to integrate their cryptocurrency software capabilities with the cloud-based CCH Axcess Tax and on-premise CCH ProSystem fx Tax platforms.
Both crypto companies make software for tax professionals. CoinTracker’s software and Verady’s Ledgible Tax Pro platform both automate IRS Form 8949 for virtual currency assets.
The integration with tax preparation and compliance solutions from Wolters Kluwer is meant to make it easier for firms to import this data into tax returns. Every virtual currency transaction is now considered a taxable event, so it’s the tax professional’s responsibility to calculate the gains and losses, track cost basis, and ensure tax returns are accurate, which can be especially complex if clients use multiple exchanges.
“Recognizing that virtual currencies are becoming a mainstream investment vehicle for many businesses, individual taxpayers and traders, the IRS has made reporting of the gains and losses from cryptocurrency transactions a reporting requirement for the 2021 tax season,” said Cathy Rowe, vice president of product management at Wolters Kluwer Tax & Accounting North America, in a statement. “Integrating these virtual currency tools with our expert solutions helps tax professionals accurately report on these unique investments for their clients.”
Adding cryptocurrency tax services is a smart move now, to get ahead of the game. The IRS Form 1040 now includes a virtual currency question, so firms that serve business or individual taxpayer clients will now have to handle the reporting requirements on virtual currency holdings.
“With the recent questions on the IRS tax forms and more individuals and businesses buying, holding and spending cryptocurrency, there’s a growing need to understand how digital assets align with tax, accounting and reporting as cryptocurrency adoption goes mainstream,” said John Wandrisco, chief commercial officer at Verady, also in a statement. “We’re very excited to partner with Wolters Kluwer to solve these challenges for professionals with Ledgible Tax Pro in a way that saves their practices both time and effort, while adding lucrative new advisory offerings.”
“There are a lot of new clients coming into the virtual currency space these days,” added Shehan Chandrasekera, head of tax strategy at CoinTracker. “We’re excited to partner with Wolters Kluwer and integrate our tool with their solutions to help tax and accounting firms capitalize on this opportunity and become practice leaders in the space.”
Accountants interested in learning more about these integrations can listen to a podcast with Cathy Rowe, John Wandrisco and Kell Canty, CEO of Ledgible, here, and a podcast with Cathy Rowe and Shehan Chandrasekera here.