Ernst & Young has announced the launch of an accounting and taxation tool for cryptocurrency holdings.
The tool called EY Crypto-Asset Accounting and Tax (CAAT) will facilitate accounting and tax calculations for cryptocurrency transactions and is targeted to both institutional customers and retail investors.
Mentioning the March 4 launch of the tool, Marna Ricker, EY Americas vice chair of tax services, said: “EY CAAT exemplifies our commitment to exceptional client service in a changing landscape. We are excited to offer an innovative technology specifically to address our clients’ needs in the crypto-asset space. I appreciate the efforts of the EY Foundry and professionals across our practice who have made this breakthrough.”
The firm detailed that the tool will source transaction-level information from “virtually all major exchanges.” Further, it will consolidate data from multiple sources and will automate the production of various reports and dashboards, preparing IRS tax returns for crypto assets.
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“The initial validation we have received from the market has been phenomenal, but it only represents the beginning,” Michael Meisler, partner and EY global blockchain tax leader, said. “EY professionals and clients alike are eager to leverage this technology. EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”
The Growing Need for Crypto Tax Filing
As the cryptocurrency industry is evolving, the need for a proper declaration of digital assets in tax filling has become essential. Many firms are now targeting this area and building new tools to ease their clients’ efforts.
In January, the leading US crypto exchange Coinbase integrated TurboTax, the tax-filing software by Intuit Consumer Tax Group, in its platform to allow its professional and retail customers to directly upload their transactions, gains, and losses for tax filing.
TurboTax also partnered with CoinsTax, last month, to add cryptocurrency tax calculation to its services.
“The world of crypto-assets and cryptocurrency investing continues to evolve. It is the Foundry’s mission to stay ahead of the market as best that we can and to launch new digital solutions and digital businesses to help our clients do the same. EY CAAT is a timely addition to our expanding portfolio of successful new digital businesses at the Foundry,” Chirag Patel, EY foundry leader, added.