EY launches crypto reporting app for calculating tax
The EY CryptoPrep helps clients of the company with US tax filings
Last Thursday, Ernst and Young announced the launch of EY CryptoPrep, an application that assists with US tax filings for crypto enthusiasts and businesses. According to EY, this new web-based Software as a Service (SaaS) product is a fully automated enterprise-grade crypto tax engine that offers step by step guidance for its users all throughout the process of filing crypto taxes.
The company revealed that EY CryptoPrep supports many major cryptocurrency coins and exchanges.
“Aggregating and reconciling transaction data, it applies appropriate tax rules to deliver a detailed account of cryptocurrency capital gains or losses. It then provides a completed Form 8949 for all applicable tax years. The core technology and service are also available to clients as a managed service through EY TaxChat and the EY Blockchain Analyzer.” EY revealed.
In addition, EY said that tax filing obligations for crypto transactions are triggered on the basis of the resulting capital gains or losses. The EY CryptoPrep app calculates crypto responsibilities for the current tax year, and even allows users to submit amended returns for prior years to reconcile their previous tax liabilities.
The EY Foundry Leader, Chirag Patel, said that the app is the company’s way of adapting to the emerging crypto industry:
“EY CryptoPrep expands our innovative portfolio of successful new digital businesses. EY CryptoPrep is another great showcase of our commitment to address the evolving needs of our clients.” Patel said.
EY has consistently taken an open approach to cryptocurrencies and related technologies. Last year, the company announced its launch of the second generation of the EY Blockchain Analyzer. This is a blockchain analytics tool that can support clients in trading cryptocurrencies or operating in the blockchain ecosystem. New developments include the support of several new cryptocurrencies on the platform, additional functionalities relevant to private and public blockchains, as well as a globally accessible and available platform.
EY Global Innovation Leader for Blockchain, Paul Brody, said that the app is meant to be a multipurpose platform for all needs related to the regulation of cryptocurrencies.
“With the second generation of EY Blockchain Analyzer, we are building a true platform solution that can be used for multiple purposes such as audit, tax and transaction monitoring, depending on client needs. From the start, we have had technologists and audit practitioners working together on this platform so we can keep our technology and audit methodology aligned and meet our professional standards.”