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.

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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

“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.


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