Ernst & Young Launches EY CryptoPrep to Help US Traders with Tax

Ernst & Young LLP, otherwise known as EY US, announced this week that it has launched cryptocurrency application EY CryptoPrep, to assist traders with tax filings in the United States.

CryptoPrep is a Software as a Service (SaaS) web-based crypto tax engine. According to the statement from EY, one of the big four accounting firms, the engine offers step-by-step guidance through the crypto tax process.

The CryptoPrep solution supports most of the major Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and exchanges, the statement said, and through aggregating and reconciling transaction data, the service applies the relevant tax rules to produce an account of crypto capital gains or losses.

After this, the product provides a completed Form 8949, the form used to report sales and exchanges of capital assets, for all applicable tax years. Although the product launched this week is specifically for crypto, the underlining technology is also available for clients through EY TaxChat and the EY Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Analyzer.

Commenting on the product launch, Marna Ricker, EY Americas Vice Chair of Tax Services said in the statement: "Our clients increasingly hold and trade crypto assets, creating the need for an innovative solution to address the evolving complexity around filing crypto taxes. The EY Foundry, our internal corporate venturing unit, created EY CryptoPrep to modernize the crypto tax accounting process."

Ernst & Young expands crypto services

The latest product from Ernst & Young follows on from the accounting firm launching an accounting and taxation tool for cryptocurrency holdings last year. The tool, which is called EY Crypto-Asset Accounting and Tax (CAAT), facilitates accounting and tax calculations for cryptocurrency transactions and is targeted to both institutional customers and retail investors.

"EY CryptoPrep expands our innovative portfolio of successful new digital businesses," added Chirag Patel, EY Foundry Leader in the statement. "EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients."