Cryptocurrency exchange Gemini will automate taxes for its clients, who trade cryptocurrencies.
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According to an official announcement, the exchange will begin integrating TaxBit’s Tax Center Suite service to automate and optimize cryptocurrency tax reporting for its users.
With the new technology, Gemini's users in the US could download a completed tax report for a variety of tax filing software or handed over to an accountant in the same format that the US Internal Revenue Service (IRS) requires.
The new service will reportedly allow the exchange's users to monitor and lower their tax liability:
"You will be able to see the real-time tax impact of your transactions, as well as receive trade alerts when tax saving opportunities are available."
Earlier in August, the IRS announced that crypto income related to microtasks on crowdsourcing platforms is also taxable. The memorandum was written by the regulator in response to a question from the US Small Business/Self Employed Division.
Per the IRS, when a taxpayer receives convertible cryptocurrency for performing microtasks, regardless of the value and the manner in which it is received, then the taxpayer has been compensated with property.
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