Node40, a blockchain governance company and one of the biggest server hosting providers for the Dash network, has launched Bitcoin tax reporting support on its Software as a Service (SaaS) offering, Node40 Balance. The new service comes just a few months after the New York company introduced blockchain accounting software for Dash users.
Perry Woodin, CEO of Node40, said: “Not only is blockchain accounting inherently complicated, it’s currently under heavy legal scrutiny. Since the IRS considers digital currency property, each and every input to a transaction has a potential gain or loss. Tracking the cost basis and days carried on every input to a transaction is simply not possible without sophisticated software.
Nobody wants to think about gains and losses when purchasing goods or services, much less manually record transactions in a spreadsheet for future record keeping. Node40 Balance allows digital currency owners to use the blockchain as the public ledger it was always intended to be, and provides users with the most accurate data for their reporting obligations at tax time.”
2020 Global Market Outlook: How the “Known Unknowns” Can Affect CurrenciesGo to article >>
The best example of the need for this service is the ongoing Coinbase vs IRS lawsuit.
“The IRS Coinbase summons motivated Dash owners to use our service and get their records in order for the 2016 tax season, and Bitcoin owners have well and truly been put on notice. The voluntary compliance rate for United States citizens is over 80%, which makes it obvious that most people take reporting their tax liability seriously; we believe bitcoin users haven’t had the right tools available yet.
If the industry wants digital currency transactions to become commonplace, an integrated service like Node40 Balance is essential. It validates the legitimacy of a new, complex form of transacting, and compliance is crucial to bringing a new technology into the mainstream,” Woodin said.
Currently, Node40 Balance’s Bitcoin service is available for Electrum wallet users, with new wallets promised soon – Exodus and Trezor are next in line for integration.