Ernst & Young LLP (EY US) announced on Thursday the launch of EY CryptoPrep, a cryptocurrency application that assists with US tax filings. According to EY, this new Software as a Service (SaaS), web-based product is a fully automated, enterprise-grade crypto tax engine offering step-by-step guidance through the crypto tax process.
“EY CryptoPrep supports many major cryptocurrency coins and exchanges. Aggregating and reconciling transaction data, it applies appropriate tax rules to deliver a detailed account of cryptocurrency capital gains or losses. It then provides a completed Form 8949 for all applicable tax years. The core technology and service are also available to clients as a managed service through EY TaxChat and the EY Blockchain Analyzer.”
EY also revealed that cryptocurrency transactions trigger tax filing obligations on the basis of the resulting capital gains or losses. The EY CryptoPrep now calculates crypto responsibilities for the current tax year and even enables users to submit amended returns for prior years to reconcile previous tax liabilities. While sharing more details about the app, Marna Ricker, EY Americas Vice Chair of Tax Services, stated that the company’s clients are increasingly holding and trading crypto which is why the app was created as a way to address the crypto tax accounting process. Chirag Patel, EY Foundry Leader, went on to add:
“EY CryptoPrep expands our innovative portfolio of successful new digital businesses. EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients.”