BlockFi Selects Sovos for Tax Information Reporting on Cryptocurrency Investments

June 9, 2020

Global tax software leader Sovos today announced that BlockFi, a financial services company focused on building products for cryptocurrencies, selected Sovos for its 1099 crypto tax information reporting needs. The Sovos Tax Information Reporting solution automated BlockFi’s 1099 forms and filings for crypto investor clients for the 2019 tax year while reducing potential errors and delivering automatic regulatory updates in the everchanging cryptocurrency compliance landscape.

Launched in 2017, BlockFi provides wealth management products to thousands of crypto investors across the globe. Building off its original crypto-backed loans, BlockFi now provides an interest account and a no-fee trading platform. The crypto financial services platform selected Sovos for its experience as the largest private filer to the IRS of 10-Series tax forms, as well as for Sovos’ leadership in addressing the compliance concerns of the digital currency market.

“Sovos works with some of the largest financial institutions in the world and partners with companies built for blockchain,” said Amit Cheela, senior vice president of finance at BlockFi. “By leveraging the Sovos platform, BlockFi can continue to grow quickly and release new financial products without worrying about murky cryptocurrency tax information reporting requirements.”

The IRS expects tax reporting on cryptocurrency, but the agency has not clarified guidance around the exact Form 1099 requirements. In the meantime, companies must interpret the regulations to help their clients understand taxable crypto events and avoid improper or under reporting of income to the IRS and applicable states. For companies like BlockFi, managing risk and maintaining compliance is critical to growing in a market rife with regulatory unknowns.

“As cryptocurrency tax reporting continues to take shape, the Sovos regulatory team remains at the forefront of changes, so we can help customers like BlockFi quickly adapt to rapid reporting requirement shifts,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos.

To learn more about protecting your digital asset company from the burdens and risks of cryptocurrency tax reporting, visit https://sovos.com/solutions/cryptocurrency-tax-software/.

About Sovos
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As modern tax goes digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

About BlockFi
BlockFi is a financial services company focused on building products for crypto. The company services clients in over 100 countries, and in all 50 U.S. states. BlockFi’s offerings include interest-earning accounts, low-cost USD loans secured by crypto and zero-fee trading. BlockFi is backed by leading institutional investors and operates with a focus on compliance with U.S. laws and regulations. Learn more at BlockFi.com.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Additional Press Releases

July 7, 2020
Sovos Acquires U.K.-Based VAT Managed Services Company Accordance

Global tax software provider Sovos today announced it has acquired Accordance, a U.K.-based value-added tax (VAT) managed services company. Accordance has been a Sovos partner since 2018 and has implemented Sovos VAT Reporting software to provide technology-enabled compliance services to its clients. The acquisition comes at a critical moment for VAT countries, where businesses face a range […]

Read More
Sales & Use Tax United States
June 24, 2020
Sovos “2020 State of Sales and Use Tax Report” Shows Governments Outpacing Businesses in Implementing Technology, Driving Change

Global tax software provider Sovos today issued its annual “State of Sales and Use Tax” report focusing on the trends, impediments and technology facing organizations as they try to solve sales tax issues in a post-Wayfair economy. The report focuses on the here-and-now of sales tax compliance, examining trends in nexus laws and regulations, and how economic circumstances brought […]

Read More
ShipCompliant
June 15, 2020
Brewing Industry Sees 43% Drop in Product Registrations

Brewers are bringing fewer new products to market amid coronavirus concerns and a slowing economy, according to Sovos ShipCompliant label registration data for the months of April and May 2020, indicating these producers are doubling down on their existing product lines. Overall, producers and wholesalers in the beer, wine and spirits business registered 16,164 products through Sovos […]

Read More
June 3, 2020
Sovos GTD – Tax Determination for US Sales and Use Tax .0.0.1 achieves SAP Certification through the “Co-Innovated with SAP

Global tax software leader Sovos announced today that its Global Tax Determination .0.0.1 solution has achieved SAP certification as integrated with SAP S/4HANA® Cloud, as part of the “Co-Innovated with SAP” program. Sovos Global Tax Determination helps customers determine automated, accurate rates for every transaction and in every jurisdiction. By combining value-added tax, goods and services tax, […]

Read More
Sales & Use Tax
May 21, 2020
Sovos Earns SIIA CODiE Award for Best Compliance Solution

Global tax software provider Sovos today announced that its Sales & Use Tax Filing product has been named the Best Compliance Solution of 2020 as part of the annual SIIA CODiE Awards. The CODiE Awards recognize companies producing the most innovative business technology products across the U.S. and around the world. Sales & Use Tax Filing mitigates […]

Read More