Cointaxes is on a mission to handle the heavy lifting when it comes to preparing crypto taxes. The service helps crypto beginners, experts, and anyone in-between deal with virtual currency tax preparation. Cointaxes currently integrates with eight exchanges, many wallets, and all coins. Cointaxes is headquartered in New York with a distributed team across the United States and Europe.
Last year the Cointaxes team realized many cryptocurrency investors and professionals desperately wanted to comply with tax laws but didn’t know where to start. Making a tough situation even harder, there are four major recordkeeping hurdles that make cryptocurrency tax preparation nearly impossible without software. Those hurdles are:
Collection of all trades and transfers from centralized and decentralized exchanges as well as wallets;
Accurate and reliable estimation of USD values for all coins at the time of a transaction;
Identification of transfers and itemization of withdrawals, deposits, and other events;
Compliance with FINCEN checks for FBAR and FATCA requirements.
Cointaxes automates the virtual currency tax preparation process, handles the significant tax reporting requirements, and brings peace of mind to a stressful situation.
After signing up for Cointaxes, users can connect their exchange accounts on Coinbase, GDAX, Binance, Bittrex, Poloniex, Gemini, Kraken, and Bitfinex. Users can then link their wallets, itemize transactions, and confirm accuracy of the generated reports. Cointaxes will then automatically calculate tax forms based off the data provided.
During development of Cointaxes, a premium was placed on user experience, security, and privacy. Cointaxes’ team of engineers made sure no personally identifiable information is retained besides an email, which is used to login. Any data processed by Cointaxes is encrypted.
The Cointaxes service itself is built on modern technology, frameworks, and tools including React and Coinbase Commerce.
Beyond US Tax Season
Although the US tax season comes to a close on April 17th this year, Cointaxes’ plans don’t include waiting for the next US tax season to roll around. In addition to expanding coverage to Canadian cryptocurrency traders and other geographies, Cointaxes is also researching other valuable financial products for crypto enthusiasts. Their team is deeply invested in the cryptocurrency community and eager to ship products that people need.