![]() “As cryptocurrency tax reporting continues to take shape, Sovos remains at the forefront of regulatory changes and can quickly adapt to rapid reporting requirement shifts,” said Paul Banker, general manager, Sovos. Last month, after five years of anticipation, the IRS announced an update to its cryptocurrency policy with more guidance for individuals, but the agency did not specify which forms crypto trading exchanges should use to report tax information to the IRS and to their customers. The agency outlined penalties for failing to report income and pay crypto taxes. In July 2019, the IRS sent three different letters to more than 10,000 cryptocurrency investors reminding them of their income tax obligations, indicating investors may have inaccurately reported their virtual gains or losses. And while many, including members of Congress, looked to the IRS to provide more guidance, investors were instead met with a threat of enforcement.” Wendy Walker, solution principal at Sovos, said, “Since 2014, investors have demanded more clarification from IRS Commissioner Charles Rettig on the cryptocurrency income that should be reported to the IRS. “Sovos provides services to some of the largest traditional financial services institutions and will bring that level of expertise and sophistication to address the reporting needs of our cryptocurrency customers in the upcoming 2019 tax season.”Ĭrypto tax guidance for exchanges and the investors they serve “With Sovos, we can react quickly to shifting cryptocurrency tax reporting regulations, helping to ensure our customers are just as protected as investors of other asset classes,” said Joshua Rawlins, managing director, financial operations, Gemini. The exchange and custodian selected Sovos for its experience as the largest private filer to the IRS of 10-series tax forms, as well as for its leadership in addressing the compliance concerns of the alternative currency market. Founded with compliance as a core organizational pillar, Gemini prioritized tax information reporting as critical to scalability in a market where regulations are still evolving. Launched in 2015, Gemini has grown into one of the most trusted cryptocurrency exchanges and custodians globally. ![]() The Sovos Tax Information Reporting solution will automate Gemini’s 1099 forms and filings, reducing potential errors and delivering automatic regulatory updates in the everchanging cryptocurrency compliance landscape. Global tax software leader Sovos today announced that Gemini, the cryptocurrency exchange and custodian co-founded by Cameron and Tyler Winklevoss, has selected Sovos for its tax information reporting needs.
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