Cryptocurrency Leader Bitstamp Selects Sovos for Tax Information Reporting

November 23, 2020

Sovos automation technology will provide 1099 forms and more to ensure crypto tax reporting compliance as virtual currency scrutiny increases

BOSTON (PRWEB) November 23, 2020. Global tax software leader Sovos today announced that cryptocurrency exchange Bitstamp has selected Sovos for its 1099 crypto tax information reporting needs. As virtual currency scrutiny grows at the IRS, the company will use the Sovos Tax Information Reporting solution to fully automate reporting and payment for traditional and modern transaction-level tax reporting, as well as deliver real-time regulatory compliance, freeing teams from the work required to monitor, interpret and deliver regulatory content.

The partnership comes just ahead of the kick-off to the 2020 tax filing season in January. The IRS recently released its draft form for the season, moving virtual currency to page one of the standard 1040 form. Updates to the form, in addition to a new round of letters to crypto holders who may not have properly reported crypto transactions on their federal income tax returns, indicate an increased level of scrutiny by the agency.

“The Sovos solution automates complex reporting at the federal and state level, which allows our team to focus on other client-centric initiatives,” said Hunter Merghart, Head of U.S. at Bitstamp.

Founded in 2011, Bitstamp is the world’s longest-running cryptocurrency exchange and Europe’s largest by trade volume.

Protecting Investors with High-Volume Crypto Tax Reporting
Bitstamp joins other crypto industry pioneers — including PaxosGemini and BlockFi — that have turned to Sovos for high-volume crypto tax reporting. As a trusted partner, Sovos is the largest private filer to the IRS of 10-Series tax forms and can quickly adapt to the compliance needs of the cryptocurrency market.

Despite its increased scrutiny, the IRS has yet to provide clear guidance on 1099 form requirements for cryptocurrency reporting. In the meantime, exchanges must interpret the regulations to help investors 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, it is critical for companies like Bitstamp to use a seasoned partner like Sovos to overcome blockchain tax reporting compliance challenges and pitfalls.

“As cryptocurrencies grow increasingly popular, they have in turn fallen under heightened IRS scrutiny. Bitstamp understands that to remain compliant, they need a trusted partner like Sovos to automate what can be a truly arduous and confusing process,” 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 was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction control compliance, tax reporting and more. The company supports more than 8,000 customers, including half of the Fortune 500, operating in over 70 countries. Its SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout North America, Latin America and Europe, and is owned by Hg and TA Associates. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.

About Bitstamp
Bitstamp is the world’s longest-running cryptocurrency exchange, continuously supporting the crypto economy since 2011. With a proven track record and mature approach to the industry, Bitstamp provides a secure and transparent trading venue to over four million individuals and enables a range of institutional partners to enter crypto markets through their time-proven infrastructure. Whether it’s through their intuitive web and mobile apps or arsenal of industry-leading APIs, Bitstamp is where crypto enters the world of finance.

Sign up for Email Updates

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

Additional Press Releases

February 6, 2025
Chris Clinton of Sovos Recognized on the Prestigious 2025 CRN® Channel Chiefs List

ATLANTA, GA, February 6, 2025 – Sovos, the always-on compliance company, today announced that CRN®, a brand of The Channel Company, has named Chris Clinton, Chief Partner Officer, to the prestigious 2025 CRN® Channel Chiefs list, which recognizes the IT vendor and distribution executives who are driving strategy and setting the channel agenda for their […]

Read more
ship alcohol
North America ShipCompliant
January 23, 2025
DtC Wine Shipping Declines in the Face of Industry Headwinds

Sovos and WineBusiness Analytics annual Direct-to-Consumer Wine Shipping Report shows drop as overall wine market downturns  ATLANTA – JANUARY 23, 2025 – With declining trends across the wine and overall beverage alcohol markets, the direct-to-consumer wine shipping channel faced a challenging year in 2024, according to the latest Direct-to-Consumer Wine Shipping Report from Sovos ShipCompliant and WineBusiness Analytics. The […]

Read more
SAP Clean Core implementation
North America VAT & Fiscal Reporting
January 14, 2025
Sovos Named a Leader in 2024 IDC MarketScape for Worldwide Value-Added Tax Management

ATLANTA – January 14, 2025 – Sovos, the always-on compliance company, has been named a Leader in the IDC MarketScape for Worldwide Value-Added Tax Management 2024 Vendor Assessment (Doc # US52732824, December 2024). The report noted, “Sovos VAT compliance solutions and services include full coverage for VAT reporting, continuous transaction control compliance, e-invoicing clearance, post-audit einvoicing, and […]

Read more
webianr - FR Nouvelle ere facturation electronique
North America
December 10, 2024
Sovos Names New Executive Leadership for Global Finance and Product Strategy Functions

David Woodworth and Swati Garodia selected to build and transform critical operation areas for global platform company ATLANTA, DECEMBER 10, 2024 – Sovos, the always-on compliance company, today announced the appointment of two executive leaders. David Woodworth joins Sovos as its chief financial officer (CFO), where he will lead all finance, accounting, tax and treasury […]

Read more
North America Sales & Use Tax
December 5, 2024
Sovos’ Global Tax Determination Processes Taxes on Nearly 300 Million Transactions Over Black Friday and Cyber Monday, Achieves 92% Growth and 100% Uptime

ATLANTA – December 5, 2024 –Sovos, the always-on compliance company, today announced record-breaking performance during this year’s Black Friday and Cyber Monday shopping events. The company processed taxes on nearly 300 million items on these two days alone – of the 16+ Billion processed annually – showcasing the scalability and reliability of its global tax […]

Read more