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Cryptocurrencies

LibraTax launches tax compliance for Bitcoin wallets

Wednesday 4 February 2015 | 09:57 AM CET

LibraTax has released a tax compliance developer kit for Bitcoin wallets, exchanges, payment processors, and other digital currency services.

Anyone developing software in the Bitcoin ecosystem or on top of blockchain technology can now provide their customers tax compliance.

This occurs less than one year after the IRS issues guidance on ‘virtual currencies’ in Notice 2014-21, which states that nearly every Bitcoin transaction between two parties is a taxable event where cost basis must be determined. 

Furthermore, the recognition of income is not only dependent on the price of Bitcoin, but a capital gain or loss must also be tracked and reported. Gifts or donations are also accounted for differently. Without specialized software, the task is extremely time consuming, and at scale, virtually impossible.

LibraTax is a company that provides a tax preparation tool, attributed as the first to calculate tax obligations for Bitcoin traders

More: Link
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