Cryptocurrency tax automation software company TaxBit, has just unveiled they pulled off a seed round of $5 million, with some of the industries’ biggest names participating. Investors include Fintech venture firm, TTV Capital, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital, Valar Ventures, Global Founders Capital, Table Management, Album VC, who previously led TaxBit’s pre-seed round, and more.
Austin Woodward, CEO and Founder of TaxBit (as well as CPA) stated:
“In such a highly regulated space with so many complexities, TaxBit is needed to remove the burden of proper cryptocurrency tax reporting from the shoulders of crypto users, exchanges, and merchants.”
“TaxBit’s software and tax experts will accurately handle all of the back-end complexities while providing users with an intuitive, user-friendly experience on the front-end.”
Winklevoss Capital Partner, Sterling Witzke, added:
“Navigating cryptocurrency tax laws is a byzantine process. TaxBit’s technology eliminates this confusion and complexity by allowing crypto owners to seamlessly understand the full picture of their tax liability through an intuitive and easy-to-use platform. Solving for this pain point is integral to accelerating cryptocurrency adoption, and we are thrilled to back TaxBit on this mission.”
The IRS has been vocal as to properly reporting cryptocurrency taxes. This past summer, the IRS sent out tens of thousands of audit notices to US cryptocurrency traders, followed by releasing new cryptocurrency tax guidance in the fall. To top it all off, the IRS included a new question on its 2019 tax return form which requires all US taxpayers to attest whether they acquired, sold, or exchanged cryptocurrency at any point during the taxable year.
TaxBit, founded by CPAs, tax attorneys, and software developers, has a mission to enable widespread cryptocurrency adoption by automating the regulatory hurdle of tax compliance.
Salt Lake City-based TaxBit launched its consumer product in January 2019 and has since helped thousands of cryptocurrency users automate their taxes. The company’s consumer product is often referred to as the “TurboTax of crypto”, as users can easily use TaxBit’s do-it-yourself platform to produce all of their required crypto tax forms in minutes.
In 2019, TaxBit also launched its enterprise tax center suite that is now being deployed by cryptocurrency exchanges and merchants. Similar to the tax centers provided by equity trading platforms, TaxBit’s tax center suite facilitates tax compliance for enterprises and their users through a technology-driven platform.
TaxBit plans to use the funds raised to further enhance its products and accelerate customer growth, both in the United States and internationally in regions including Canada, UK, and Australia.
“For cryptocurrency to proliferate further, an ecosystem of compliance tools must be created,” says Sean Banks, Partner at TTV Capital. “We are very impressed with the TaxBit team and the platform they are building. This technology is fundamental to the adoption of cryptocurrency, as it enables the industry to progress while being compliant with tax regulations worldwide.”
Filing taxes is an intimidating process, as is. With the IRS’ new guidelines and requirements regarding cryptocurrency, it has become even more difficult. TaxBit strives to lessen the stress and simplify the process for merchants, individuals, and exchanges, alike. With a strong and qualified internal team, TaxBit is able to provide accounting software with immutable and secure tax data, at a time when it is most critical.
TaxBit was founded by CPAs, tax attorneys, and software developers in order to enable widespread cryptocurrency adoption by automating the regulatory hurdle of tax compliance. TaxBit’s software is used by thousands of everyday crypto users, in addition to crypto exchanges and merchants with regards to their 1099 and enterprise reporting requirements. TaxBit is located in Salt Lake City, UT. To learn more visit: www.taxbit.com
- Token Taxonomy Workshop – - January 24, 2020
- Deloitte Bullish on Libra Project in New Report - January 22, 2020
- Busted: SEC Charges Blockchain Marketplace Founder Sergii “Sergey” Grybniak for Fraudulent ICO 2017 - January 22, 2020
- DC Blockchain Advocacy Group US Chamber of Digital Commerce Supports Telegram Vs. SEC Case - January 22, 2020
- BIS Forms New Central Bank Think Tank to Assess National Cryptocurrencies - January 22, 2020
- Bank of England Pondering National Cryptocurrency - January 22, 2020
- Infamous Online Gaming Community Clanbase to Relaunch With Blockchain Technology in 2021 - January 21, 2020
- Chainalysis: 2019 Saw More Cryptocurrency Hacks – Total Amount Stolen From Exchanges Dropped To $283 Million - January 21, 2020
- J. Christopher Giancarlo, former Chairman of the US Commodity Futures Trading Commission - January 21, 2020
- Ethereum Classic Labs Donates $1 Million to UNICEF Innovation Ventures - January 20, 2020
- Busted: SEC and U.S. Attorney’s Office for the District of New Jersey Files Lawsuits Against Fraudulent ICO that raised $30 million - January 17, 2020
- Kenya Issues Second ICO Warning After Investors Lose €24+ Million Euro - January 17, 2020
- Neufund Wraps Tokenised Equity Crowdfunding Series B with Greyp Bikes raising €1.4m EUR - January 17, 2020
- U.S. Lawmakers Pondering “Crypto-Currency Act of 2020” - January 17, 2020
- New Blockchain-based Visa Token Service Set To Launch in 2020 – Set to Reach $1 Trillion - January 17, 2020
- Germany’s New Shore Invest Launches STO Ship Financing Platform – Tokenised Fractional Ownership - January 16, 2020
- Open Source Luminary Marc Fleury Enters Crypto Arena with Announcement of New Crypto Asset Class and Continuous Token Offering Sale - January 16, 2020
- UN Warns Public Not To Attend North Korea Blockchain and Cryptocurrency Conference 2020 - January 16, 2020
- Fiat-to-Crypto Gateway Solution, Banxa, Raises $2 Million USD Series A Round Led By NGC Ventures - January 15, 2020
- United Africa Blockchain Association Plans to Fire Up Blockchain Adoption - January 14, 2020
Also published on Medium.