KANALCOIN NEWS – Coinbase and CoinTracker are reportedly cooperating in the US tax sector. CoinTracker offers a partnership so that Coinbase users can pay their 2020 annual tax more easily than usual.
Coinbase users in the United States today will find it easier to report their gains and losses in their cryptocurrency to the Internal Revenue Service (IRS). This is because Coinbase is collaborating with CoinTracker.
CoinTracker is a portfolio tracking company and cryptocurrency tax accounting platform. CoinTracker offers a simpler process for Coinbase users to report their cryptocurrency transactions.
Later, CoinTracker will calculate and fill out specific formulas addressed to cryptocurrency owners, such as Form 8949 and Schedule D. The purpose of filling out these formulas is to report capital gains, losses, and assets on the cryptocurrency owners’ income tax returns.
The scheme offered by CoinTracker can later be used by individuals and accountants or as part of a tax filing software program in the United States, such as TurboTax.
CoinTracker founder, Chandan Lodha, said that their partnership with Coinbase will provide one-click integration facility from Coinbase’s tax page. This one-click integration will later allow users to calculate the cryptocurrency gains and losses they have on the platform.
Reported by Kanalcoin.com from Cointelegraph, Lodha also said that the reason CoinTracker cooperated with Coinbase was to continue their noble mission that was conveyed in April 2020.
Lodha said that CoinTracker wants to help increase the trust and legitimacy of the cryptocurrency industry as a whole, especially in the eyes of the government. Therefore, CoinTracker strives to help policy makers see that the majority of cryptocurrency usage is done by ordinary people.
CoinTracker also wants to show governments and policy makers that the transactions made by cryptocurrency owners are legal and carried out by people with very high tax compliance.
Now, the IRS has begun to strictly monitor the various transactions made by cryptocurrency users. This was done by the IRS in line with the rapid development of the cryptocurrency industry in recent times.
In fact, in August 2020, a memorandum from a federal agency was issued stating that the United States Government considers all cryptocurrency transactions counted as taxable income.
In December 2020, the IRS issued a tax formula that was quite controversial for cryptocurrency owners. In the formula issued to citizens of the United States, the IRS asks questions about the intensity of digital asset transactions carried out by citizens of the United States.
Thus, citizens of the United States are indirectly asked to be honest about their digital assets so that they are not exposed to data falsification in taxation.