Based in Luxembourg cryptocurrency exchange Bitstamp has selected Sovos, a tax software provider, for automated crypto tax reporting.
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According to an official press release that was shared with iHodl, the exchange will use the Sovos' products to automate reporting and payment for traditional and modern transaction-level tax reporting. The announcement comes ahead of the 2020 tax filing season in the United States.
"The Sovos solution automates complex reporting at the federal and state level, which allows our team to focus on other client-centric initiatives," said Hunter Merghart, Head of US at Bitstamp.
Meanwhile, iHodl reported that the other cryptocurrency exchange, Gemini, also selected a tax service provider called TaxBit 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 IRS requires.
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