EY, one of the four major accounting firms, has announced the launch of its in-house cryptocurrency tax service, EY CryptoPrep. This service is a fully automated, web-based product that will assist traders in filing US taxes.
EY Launches CryptoPrep
Traders in the US will now be able to use the latest crypto tax services from any of the four major accounting firms when filing their taxes with the IRS.
Ernst & Young, one of the largest accounting firms, launched EY CryptoPrep, a self-service app that calculates taxes on cryptocurrency gains and losses. EY CryptoPrep is a software-as-a-service (SaaS) based product, providing users with a fully automated enterprise-grade crypto tax engine, according to a press release from the company.
Marna Ricker, vice chair of tax services at EY America, said the service was an answer to the growing need to address the growing complexities surrounding crypto tax filing. Chirag Patel, chairman of EY Foundry, noted that EY CryptoPrep demonstrates the company’s commitment to addressing the changing needs of its clients.
Calculating Crypto Tax
Although the newly launched service does not directly file taxes with the IRS, it does aggregate a user’s transaction history and generate the capital gains and loss calculations required to complete IRS Form 8949.
Users can provide EY CryptoPrep with read-only API keyaccess from the exchange. and allows the service to access history automatically. The service also allows users to manually enter additional off-exchange transactions as well. However, the company notes that they do not support direct imports from wallets.
The newly launched service comes at a time when crypto companies are trying to comply with US regulations while large institutions in traditional markets are slowly entering the crypto industry. However, with EY’s stringent KYC requirements for CryptoPrep, we haven’t seen how the highly privacy-conscious market accepts the service.