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TaxBit is excited to announce that it has partnered with BlockFi to help its users automate their cryptocurrency taxes. BlockFi customers can securely sync their account to TaxBit and generate their required tax forms. An overview of the partnership on BlockFi's website can be viewed here. A live stream discussing the partnership featuring BlockFi's CEO Zac Prince and TaxBit's CEO Austin Woodward…

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February 24, 2020

It’s tax season and many taxpayers will receive tax forms from cryptocurrency exchanges. Due to some confusion in the industry, some taxpayers may receive a form 1099-K, others will receive a form 1099-B, and some may receive nothing at all. Whatever situation you fall under, TaxBit is skilled in helping. Form 1099-K A couple of cryptocurrency exchanges have issued 1099-K’s, which is an…

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February 14, 2020

TaxBit is excited to announce that it has partnered with Gemini to help its users automate their cryptocurrency taxes. Gemini customers can securely sync their Gemini account to TaxBit and generate their required tax forms. An overview of the partnership is also available on Gemini’s website. Users can easily connect their exchanges, see their real-time tax liability as they trade, and generate…

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February 11, 2020

TaxBit’s users have frequently asked how they can refer their friends to TaxBit. By popular demand, TaxBit is excited to announce the release of its customer referral program. Users will receive up to $100 for referred users who sign up for TaxBit. To refer a friend to TaxBit you can navigate to the settings page of your TaxBit account. You will have a unique referral link within your account that…

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January 21, 2020

Thousands of cryptocurrency traders have been receiving CP2000 letters from the IRS over the past few months. CP2000 notices have been in the tax compliance world for a while and are not specific to cryptocurrency. CP2000 notices are often generated when there is a matching issue between what is reported to the IRS by an exchange/broker and a taxpayer. In the cryptocurrency realm, TaxBit has…

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January 13, 2020

TaxBit is happy to announce the recent hire of former Coinbase Compliance Director Jeff Cartwright. Cartwright was an early employee at Coinbase and helped lead general compliance, internal audits, and regulatory risks. After leading compliance matters at Coinbase, Cartwright worked at Facebook as a Policy and Compliance Manager on its cryptocurrency project, Calibra. Cartwright is an attorney and…

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January 08, 2020

TaxBit, which offers cryptocurrency tax automation software for crypto users, exchanges, and merchants, announced today a $5 million seed round, with a stellar group of investors composed of Fintech leaders TTV Capital and Valar Ventures, crypto moguls Dragonfly Capital Partners, Collaborative Fund and Winklevoss Capital, and generalist investors Global Founders Capital, Table Management, Album…

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January 06, 2020

On October 9th, 2019, the IRS released long awaited guidance on the taxation of cryptocurrency through Rev. Ruling 2019-24 and an associated FAQ. Specific to this article, the IRS issued additional guidance on proper cost basis assignment methods. This article will discuss: Why cost basis assignment methods matter; and Acceptable and the most optimal IRS cost basis assignment methods for…

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December 13, 2019

On October 9th 2019, the IRS released long awaited guidance on the taxation of cryptocurrency through Rev. Ruling 2019-24 and an associated FAQ, including their guidance on treatment of airdrops. The IRS takes the controversial position that the airdrop equates for taxation purposes to a dividend. As a corollary, an involuntary (and perhaps unknowing) recipient of an airdropped token would have…

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December 09, 2019

The IRS just released a new Schedule 1 for the 2019 tax season asking every taxpayer about their cryptocurrency activity. Specifically, the form requires taxpayers to respond to the following question: “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency.” Signalling increased enforcement, the IRS included this…

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December 06, 2019

In 2014, the IRS declared that cryptocurrency, such as Bitcoin, is treated as property for tax purposes. In 2019, the IRS released further guidance through Revenue Ruling 2019-24, which brought cryptocurrency in even further alignment with equities and other capital assets for tax purposes. Taxpayers are required to report their capital gains and losses on the same form (IRS Form 8949) as stocks…

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November 18, 2019

Cryptocurrency exchange Huobi.com announced that it is shutting down operations to U.S. users. United States Huobi users have until November 13, 2019 to move their assets off of Huobi.com Users should connect their API’s to their TaxBit account or export their transaction history so that they have records of taxable transactions, per IRS requirements. Exchanges shutting down can make it very…

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November 07, 2019

Large cryptocurrency exchange Poloniex announced that it is shutting down operations to U.S. users. TaxBit is here to shed some insight and share how to prepare from a tax standpoint. U.S. Poloniex users have until December 15, 2019 to connect their API’s to their TaxBit account or to export their transaction history so that they have records of their taxable transactions. On February 26, 201…

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October 22, 2019

In the crypto tax space there is frequent mention relating to taxpayers’ responsibilities to calculate and report capital gains and losses on an IRS 8949 cryptocurrency tax form. What often gets overlooked is the tax implications and potential deductions for mining cryptocurrency such as bitcoin. Mining cryptocurrency has a unique problem of creating multiple tax implications that must be reported…

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October 21, 2019

After months of anticipation, the IRS has finally released its new cryptocurrency tax guidance through Rev. Rul. 2019-24 and an FAQ. Specifically, this new revenue ruling clarifies: 1) proper tax calculation methods; 2) the tax treatment of hard and soft forks; 3) proper sources for pricing data; 4) cost basis assignment on gifted crypto; and 5) taxpayers’ responsibilities. 1) Proper Tax…

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October 10, 2019

The IRS says I need to report my cryptocurrency taxes…, but I had net taxable losses? TaxBit has frequently heard this sentiment from its users. Although losing money on your crypto trades is a major bummer, TaxBit can help you receive some relief in the form of an increased tax refund. With wild price swings and volatile coins, most crypto traders lived through the unfortunate reality of losing…

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October 09, 2019

In 2014 the IRS clarified that cryptocurrency is taxed as property. This means that every cryptocurrency trade or sale is a taxable event. Although taxpayers are required to report taxes on virtual cryptocurrencies such as Bitcoin, the process of doing so before TaxBit was I guess you could say... taxing. Over the last couple of months the IRS has sent thousands of letters to taxpayers who traded…

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September 26, 2019