BlockFi Teams With TaxBit on New Tax Center for US Clients

JERSEY CITY, N.J., Aug. 19, 2021 /PRNewswire/ -- BlockFi, a financial services company dedicated to building a bridge between cryptocurrencies and traditional financial and wealth management products, today announced a partnership with TaxBit, the leading tax and accounting software provider for the digital economy. The partnership will enable BlockFi's clients to access TaxBit's expertise on the BlockFi platform through the new BlockFi Tax Center. 

Beginning today, BlockFi clients will have access to a full suite of tax tools natively within BlockFi's platform, including tax reporting, tax planning, tax-loss harvesting and trading optimized to take advantage of tax-planning opportunities. The BlockFi Tax Center will be available to all eligible clients in the United States.

In 2019, the IRS began to issue audits to cryptocurrency holders with increasing frequency, creating a need for better tax reporting for crypto investors. Utilizing features from the TaxBit platform, the BlockFi Tax Center will track all information at the transaction level to provide clients with Form 1099-B, which is necessary to properly submit tax filings. BlockFi will also offer a seamless process to fill in any transaction information occurring outside BlockFi's platform in order to furnish a completed tax form that is ready to file.

Additionally, the BlockFi Tax Center will give clients tools to monitor their tax liability as they use BlockFi throughout the year. In the future, clients will be able to opt-in to allowing BlockFi to automatically execute transactions, which can result in an amount of tax losses specified by the user and can enable efficient tax-loss harvesting.

In the BlockFi Tax Center, clients will find useful summary data about total losses available to be harvested and total losses already harvested for the current fiscal year. They'll also find similar data by asset, including whether an asset has a tax-loss harvesting opportunity or missing cost basis and the market position of each tax lot. 

"We're always looking for ways to make it easier for clients to improve their financial planning, and we know that tax exposure can be a daunting task for crypto investors," said Zac Prince, Founder and CEO of BlockFi. "That's why we're thrilled to be the first integration with TaxBit, harnessing their expertise to untangle the complexities of the tax system for our client base."

TaxBit CEO Austin Woodward commented, "We are excited to partner with BlockFi and launch the BlockFi Tax Center. BlockFi is the first crypto native platform to provide its users with real-time gain and loss data, powerful tax-loss harvesting and optimization tools, and year-end tax forms that are ready for users to file. This partnership removes the complexities of digital asset tax reporting in a user-centric way."

To learn more about the BlockFi Tax Center and the benefits of cryptocurrency tax planning, please visit:https://help.blockfi.com/hc/en-us/sections/360011417432-Tax-Center

About BlockFi

BlockFi is a new breed of financial services company. Founded in 2017 by Zac Prince and Flori Marquez, BlockFi is building a bridge between cryptocurrencies and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. 

About TaxBit

Designed by CPAs and tax attorneys, TaxBit is the leading tax and accounting solution for the digital economy. TaxBit's customers include the world's top exchanges, institutional investors, governments, and individuals. As the first and only company to build real-time ERP accounting software for commodities, equities, and other digital asset investments, TaxBit provides enterprise clients with seamless end-to-end solutions including core accounting suite, customer management suite, and form issuance. TaxBit Consumer makes filing taxes on digital asset investments simple and painless, while equipping them with real-time directional insights 24/7, 365. The IRS selected TaxBit to provide data analysis and tax calculation support for taxpayers with digital assets. TaxBit connects all digital asset transactions across every exchange so that individuals and enterprises can accurately file their taxes, manage their portfolios, and make tax-optimized trades, all through TaxBit's seamless & secure software. TaxBit has HQ in Salt Lake City, and Seattle. To learn more visit:www.TaxBit.com,Twitter,LinkedIn.

Media Contact for BlockFi

Madelyn McHugh, VP Communications

BlockFi

[email protected] 

Media Contact for TaxBit

Michelle O'Connor, VP Marketing

TaxBit

(801) 332-9105

[email protected]

Nothing contained in this announcement should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction. The information provided in this announcement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This announcement is not directed to any person in any jurisdiction where the publication or availability of the announcement is prohibited, by reason of that person's nationality, residence or otherwise.

Neither BlockFi nor any of its affiliates or representatives provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. Digital currency is not legal tender, is not backed by the government, and crypto interest accounts are not subject to FDIC or SIPC protections. Learn more atBlockFi.com.

BlockFi Lending LLC NMLS ID#1737520 | BlockFi Trading LLC NMLS ID#1873137

Related Images

image1.jpg

SOURCE BlockFi