BlockFi, a privately-held NYC-based lending platform, has announced it entered into cooperation with a global tax software company Sovos.
According to an official press release, the Sovos Tax Information Reporting solution automated BlockFi’s 1099 forms and filings for crypto investor clients for the 2019 tax year.
By entering into the partnership, BlockFi plans to reduce potential errors and get automatic regulatory updates.
BlockFi Senior Vice President of Finance Amit Cheela says Sovos works with some of the largest financial institutions in the world and partners with companies built for blockchain.
"By leveraging the Sovos platform, BlockFi can continue to grow quickly and release new financial products without worrying about murky cryptocurrency tax information reporting requirements," Cheela added.
Since the IRS, the US Internal Revenue Service, has not clarified guidance around the exact Form 1099 requirements, it still expects tax reporting on cryptocurrency.
iHodl previously reported that the IRS asked for the help of contractors to calculate the taxes crypto users must pay.
According to an e-mail sent by the IRS and published by Cryptotrader.tax, the agency is seeking external contractors that can provide assistance in calculating the taxpayers' profits or losses related to their transactions.
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