The new Thomson Reuters tax tool is set to report cryptocurrency taxes within the crypto space. Sources indicate that Reuters GoSystem Tax RRS Products will also include a “Virtual Currency Organizer”. This will enable users of the system to file form 1040 in the United States effectively. The new tool will also serve as a central hub for all things related to cryptocurrency for the users. They include reviews on payments, hard forks, cryptocurrency exchanges and so on.
Reuters in a blog post said that the recent letters issued by the United States’ IRS raise the need for tax tools. This new tool allows for accurate reporting of cryptocurrency taxes. The tool also provides the centralization of data. This will help to achieve greater harmonization of tax obligations.
New Tool Will Offer Accurate Information
Financial and accounting professionals will have an opportunity to receive accurate information about cryptocurrency transactions. This will enable perfect reconciliation. Users of Verady’s Ledgible blockchain platform intended for accounting will be able to create reports that will be compatible with Reuters’ Ultra Tax and the Go System Tax products.
Sources further indicate that Kell Canty, CEO of Verady, said:
“Once Ledgible users have integrated their wallet and exchange activity, they’ll be able to notify their accounting professionals that the data is ready to go. Tax preparers can then bring that data into the GoSystem Tax product, placing it in the virtual currency organizer.”
This creates legitimate uses for the crypto space. Cryptocurrency taxes have been difficult for many people. Canty mentioned the firms’ involvement in assisting firms in creating accounting solutions for blockchain and cryptocurrency transactions since 2014. Canty also noted that Verady performed BitPay’s first audit in 2014.
Reuters New Tax Tool is Just the First for Cryptocurrency Taxes
U.S. regulators are looking at cryptocurrency taxes. Canty indicated that other solutions could be possible. He said:
“We are currently focused on making the collaboration with Thomson Reuters the best in the industry. As other opportunities come about, we will evaluate them on a case-by-case basis.”
This, of course, raises the stakes. Solutions of this kind are quite rare. Cryptocurrencies are a new asset class. Canty said that Fenbushi Capital which is one of the investors in Verady is also considering introducing Ledgible to the Asian market. This would be a big plus for the industry.
The response of governments towards cryptocurrencies is just beginning. A shift is occurring as regards the legality of cryptocurrency and digital assets using tax revenues. The good thing here is that now cryptocurrencies and digital assets are being taxed (or starts to being taxed). This will provide the cryptocurrency markets with a possibility boom in 2020.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.