Sovos’ crypto tax software protects customers as IRS continues to solidify reporting rules
BOSTON – August 25, 2021 – Global tax software provider Sovos announced today that it is a finalist for International Tax Review’s (ITR) Americas Tax Awards 2021. Sovos was shortlisted as a Tax Technology Firm of the Year primarily for its 1099 reporting software innovation, which the company has extended to serve virtual asset service providers to account for the heightened cryptocurrency regulatory environment.
From delayed mandates to vague taxpayer letters, over the past seven years the IRS has not provided clear crypto tax reporting guidance. This has resulted in cryptocurrency exchanges and investors operating without clear direction and in greater risk of being out of compliance with IRS tax reporting requirements. Amid this uncertainty, exchanges and custodians like BlockFi, Celsius and Gemini have taken a prudent and proactive compliance approach in order to protect themselves and investors by adopting Sovos’ 1099 crypto tax information reporting solutions.
More recently, countries around the world, including the United States, have made moves to shore up gaps related to cryptocurrency taxation. Not the least of which is the bipartisan infrastructure bill currently in the U.S. House of Representatives, which includes new crypto tax reporting provisions for exchanges and custodians.
“Enforcement of cryptocurrency compliance is ramping up, necessitating that virtual asset service providers have reporting solutions to interpret IRS guidance and streamline investors’ 1099 forms,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos. “Earning a spot on ITR’s Tax Technology Firm of the Year shortlist is a credit to our team here at Sovos and also speaks to the clear and present urgency that the industry is placing on getting cryptocurrency compliance right.”
The ITR Americas Tax Awards recognize remarkable achievements and developments by international tax professionals from the North, Central and South American regions over a 12-month period. Winners will be announced at a virtual awards ceremony on September 22.
To learn how Sovos’ automated tax reporting reduces burdens on crypto exchanges, eliminates human error and better tracks high-frequency crypto transactions, 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 20,000 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 http://www.sovos.com and follow us on LinkedIn and Twitter.