Fireblocks, the digital enterprise-grade platform, confirmed its integration with crypto tax company Taxbit.
According to a report, the main goal of this integration is to provide Fireblocks’ institutional customers in the United States with streamlined access to industry-leading tax and accounting software.
Therefore, Fireblocks customers will now be able to integrate Taxbit’s end-to-end suite of tax services directly into their digital asset workflow and gain real-time access to their tax position throughout the year, access tax forms at a click of a button and optimize trades to reduce tax liability.
Michael Shaulov, CEO of Fireblocks commented TaxBit enriches the company with a secure and powerful platform to provide complex tax and accounting solutions for its customers.
“With the TaxBit integration, we can help reduce the cumbersome process that will be faced by hundreds of institutions in the United States in the coming months,” he said.
The company – a major support of crypto – also asserted that the need for reliable and scalable solutions that enhance security, reporting, and regulatory compliance has grown in demand as a record number of institutional investors pile into digital assets.
Taxbit working out-of-the-box
According to data from Pitchbook, this year saw $17 billion worth of institutional capital flooding into the space, spanning family offices and hedge funds to traditional money managers.
Austin Woodward, CEO of TaxBit, explained the service didn’t exist until now.
“Fireblocks provides best in class digital asset infrastructure and security for institutions,” he said.
“With this integration, Fireblocks will be able to offer an industry-first tax and accounting solution for institutions that don’t exist anywhere else on the market.”
This integration should enable TaxBit to work out-of-the-box for any Fireblocks customer so that they can meet upcoming regulatory requirements for tax compliance and information reporting.
This also includes the famous ‘1099 filing’ usually used to report non-employment income, including dividends paid from owning a stock or income that you earned as an independent contractor.
Taxbit’s last report on cryptocurrency taxing says that the cryptocurrency tax rate for federal taxes is the same as the capital gains tax rate.
In 2021, it ranges from 10 to 37% for short-term capital gains and 0 to 20% for long-term capital gains.
“Anytime a taxable event affects your cryptocurrency investments, you are obligated to report these on your taxes,” Taxbit explained.