The United States’ Internal Revenue Service (IRS) is looking for a company with expertise in crypto tax audits to calculate taxpayers’ gains or losses as a result of their transactions involving cryptocurrency.
CryptoTrader.tax, a cryptocurrency tax software company that helps tens of thousands of U.S. citizens report their crypto taxes, in a blog post published on its website, announced that on Tuesday evening, May 12th, it received an email from IRS. The IRS sent out a Statement of Work soliciting private contractors to aid in the audits of cryptocurrency related tax returns.
The email reads:
“The Internal Revenue Service is engaging outside contractors to assist our Revenue Agents in calculating taxpayers’ gains or losses as a result of their transactions involving virtual currency. We are placing a few single-case contracts as pilots with a goal of publishing a solicitation and request for proposal for a larger multi-case contract. Attached is a sample Statement of Work describing the types of services we are looking for. I wanted to make you aware of our efforts in case your company has any interest in pursuing this type of work.”
The IRS is looking for a third party to support a taxpayer examination involving virtual currency, particularly gain or losses as a of their transaction involving digital assets. According to the Statement of Work (SoW) by the IRS, a crypto taxpayer’s transaction can be simple, or in some instance, a crypto taxpayers can have thousands of digital transaction in a year. These transaction data needed to be aggregated, and the asset involved need to be valued. But to do this a specialized infrastructure is required.
The document of (SoW) reads:
“Additionally, specialized technology and infrastructure is required to digest, contain, and analyse virtual currency data due to unique requirements such as but not limited to decimal place precision, varying field formats, and file formats.”
But the CryptoTrader.tax said that it will not continue with the contract. The company will focus itself on its customers.
CryptoTrader.tax is a very popular tax reporting platform. It offers the simplest and most reliable crypto tax software and calculator. Customers can download their crypto tax reports in minutes just by connecting with their exchange and import trades. The platform supports almost every prominent exchange in the world including Huobi, Binance, Coinbase, Bitfinex, and Gemini.
As Wealth Growth Insights reported, in March 2020, Hong Kong-based Crypto.com announced a partnership with three crypto tax provider that also included CryptoTrader.tax.
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