Global tax software leader Sovos today announced that cryptocurrency exchange platform Binance.US has selected Sovos for its 1099 crypto tax information reporting needs. The Sovos Tax Information Reporting solution will automate Binance.US’ 1099 forms and filings for crypto investors, reducing the potential for error and delivering automatic regulatory updates as the cryptocurrency compliance landscape continues to evolve.
Founded in 2019, Binance.US provides an exchange platform for trading various cryptocurrencies, offering an entire ecosystem of resources. The crypto trading platform selected Sovos for its experience as the largest private filer to the IRS of 10-Series tax forms, and for Sovos’ ability to quickly adapt to the compliance needs of the cryptocurrency market.
“The reporting obligations for cryptocurrency continue to evolve at a breakneck pace, often lacking clear guidance from regulatory authorities. By implementing Sovos, Binance.US can be assured of always having the latest changes pushed to us through an automated platform,” said Joshua Sroge, interim CFO, Binance.US. “This industry will continue to evolve over the next several years, and having Sovos in our corner will ensure we provide the correct reporting guidance to our users.”
The IRS has yet to provide guidance around the 1099 form requirements for cryptocurrency reporting. Therefore, exchanges must interpret the regulations to help their clients understand their crypto tax obligations and avoid reporting incorrect income to the IRS and any applicable state departments of revenue. With such high volumes of exchanges in a market full of regulatory unknowns, managing risk and maintaining compliance are critical to success for companies like Binance.US.
“As the rules and regulations around cryptocurrency tax reporting remain unsettled, the Sovos regulatory team continues to be at the forefront of changes, so we can help platforms like Binance.US quickly adjust to the reporting requirements and stay compliant,” 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.
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.
Binance.US is America’s home to buy, trade, and earn digital assets including Bitcoin. They deliver the lowest fees to move USD into over 30 different cryptocurrencies instantly. They continue to evaluate new cryptocurrencies to list on Binance.US that follow their Digital Asset Risk Assessment Framework, community feedback, and market demand. The mission is to bring financial confidence and crypto literacy to more Americans every day.