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US cryptocurrency exchange Gemini is partnering with tax compliance firm TaxBit to help its clients transfer their crypto taxes with TaxBit’s Tax Center Suite solution.
Tyler Winklevoss, CEO of Gemini Exchange, said TaxBit’s software will help reduce the “crypto tax pain point” by allowing users to track the real-time tax impact on their crypto transactions on Gemini. According to the announcement, the tool will also allow customers to potentially increase their tax refund and reduce their tax liability by providing commercial alerts when tax saving opportunities are available.
TaxBit’s Tax Center Suite solution is the first encrypted tax-related tool Gemini has ever implemented, a Gemini spokesperson told Cointelegraph. The rep said the company plans to integrate TaxBit’s solution in the first half of 2021 or earlier, as it anticipates the Internal Revenue Service’s final guidelines on how cryptocurrencies should be reported.
Once the software is fully implemented on Gemini, customers of the exchange in the United States will be able to download a tax report in a format required by the IRS.
The Winklevoss brothers invested in TaxBit earlier this year. In January 2020, their family office – Winklevoss Capital – participated in an initial $ 5 million funding round for TaxBit. Gemini has also had a referral relationship with TaxBit since the 2019 fiscal reporting period, a spokesperson for Gemini noted.
Launched in January 2019, TaxBit’s platform supports over 2,000 currencies, according to its website.
Gemini, a cryptocurrency exchange founded by the Winklevoss twins, will soon integrate a new tool that will allow users to automate their cryptocurrency tax reporting.
