TaxBit, a cryptocurrency tax software company, has announced that it has won a contract with the Internal Revenue Service (IRS).
Subcontracting under DPI Inc, TaxBit will provide the IRS with data analysis and tax calculation support for taxpayers with crypto assets.
A provider of tax automation software to businesses, consumers, and government entities, TaxBit’s Enterprise and Consumer platforms target cryptocurrency tax reporting in particular.
The two systems ensure compliance with tax law, but are also designed to support users in actively optimizing their investments and use of cryptocurrency.
Austin Woodward, co-founder and CEO at TaxBit, said that the partnership is a “milestone moment for the cryptocurrency industry”.
He added: “It indicates regulators are embracing the asset class, but doing so in a way that ensures a straightforward approach to conform with existing regulations.
“We believe this is an important step for the enablement of widespread cryptocurrency adoption.”
Alongside the IRS contract, TaxBit is set to launch a Big Four and SEC grade accounting ERP solution and deliver international expansion later in 2021.
The group pointed out that none of its customers’ information will be provided to the IRS, with data instead flowing in the opposite direction.