Popular spot and futures platform selects tax and compliance software provider for 1099 and other third-party crypto reporting
BOSTON — April 29, 2021 — Global tax software leader Sovos today announced the launch of its integration with ErisX, a leading platform for investors for trading crypto spot and futures, to assist ErisX members with their 1099 crypto tax information reporting needs.
ErisX is an exchange and clearinghouse that includes a Commodity Futures Trading Commission-regulated futures market for Bitcoin and Ether, as well as a 24/7 spot market for Bitcoin, Bitcoin Cash, Ether and Litecoin. ErisX’s work with Sovos comes in the midst of the 2021 tax season in which the IRS has continued its efforts at tax compliance related to cryptocurrency assets. This year, the agency moved the virtual currency question to page one of the Form 1040 and adjusted crucial language about which cryptocurrency transactions must be disclosed. In March, the IRS updated FAQs in order to provide additional information for tax filers.
“We have established relationships with industry leading-firms such as Sovos to help our Members trading and holding crypto calculate and report their taxes appropriately,” said Bryan Stuart, chief financial officer, ErisX. “Sovos will help us provide ErisX Members with tax reporting information that will support their filing efforts and discussions with their tax advisors.”
Sovos, which is a member of The Wall Street Blockchain Alliance and The Chamber of Digital Commerce, monitors crypto tax changes and advises customers of the evolving tax reporting regulation of cryptocurrency in the United States.
“ErisX sought a tax software provider that could accommodate for both rapid growth and expanding tax information reporting demands,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos. “As the largest private filer of 1099 forms, Sovos will ensure ErisX customers meet all tax reporting regulations during the 2021 tax season and beyond.”
The IRS is expected to issue new guidance mandating increased 1099 reporting obligations. Learn how Sovos works with industry leaders in the crypto ecosystem to provide scalable solutions that automate reporting and protect from risk. Visit https://sovos.com/solutions/cryptocurrency-tax-software/.
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 12,000 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 the Americas and Europe, and is owned by Hg and TA Associates. For more information visit www.sovos.com and follow us on LinkedIn and Twitter.
ErisX offers individuals and institutions a single, innovative platform to access crypto spot and futures markets. By combining professional tools, advanced technology, sophisticated regulatory oversight, and a diverse product set, ErisX offers compliant, capital markets friendly workflows to digital market participants. Backed by some of the world’s largest trading firms and financial institutions, ErisX brings transparency and reliability to the digital asset class. ErisX, Eris Exchange, and the ErisX and Eris Exchange logos are trademarks of the Eris Exchange group of companies.
ErisX Futures are offered through Eris Exchange, LLC, a Commodity Futures Trading Commission (CFTC) registered Designated Contract Market (DCM) and Eris Clearing, LLC, a registered Derivatives Clearing Organization (DCO). The CFTC does not have regulatory oversight authority over virtual currency products including spot market trading of virtual currencies. ErisX Spot Market is not licensed, approved or registered with the CFTC and transactions on the ErisX Spot Market are not subject to CFTC rules, regulations or regulatory oversight. ErisX Spot Market may be subject to certain state licensing requirements and operates in NY pursuant to Eris Clearing’s license to engage in virtual currency business activity by the New York State Department of Financial Services.
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