CryptoTrader.tax, a cryptocurrency tax company reported receiving a letter on the 12th of May from the IRS soliciting for its help in helping its agents to calculate taxpayers' losses or gains on their crypto transactions. The letter can be found on the blog page of CryptoTrader's website including excerpts from the letter.
This crypto tax company has however decided not to accept the contract stating that it would like to focus on its customers by directly helping them with their tax reporting responsibilities.
What exactly does the United States Internal Revenue Several need assistance with?
The IRS needs a crypto tax company to help aggregate, assess and compute crypto traders or investors gains and losses on every one of their transactions. For some taxpayers, this entire procedure could be done easily but for others, it could be a really challenging task as their transactions might be scattered all across several wallets and exchanges.
Another challenge as the IRS stated is the need for a specific technology to assimilate, comprehend and examine the data from the digital currencies resulted from having distinctive requirements like unpredictable file and field formats, and decimal place accuracy among others.
Source: Cointelegraph
