The Gemini Winklevoss brothers have learned to calculate taxes on crypt currency in real time.
Tyler and Cameron Winklevoss Gemini, the American crypt exchange of the Tyler and Cameron Winklevoss brothers, has announced the introduction of TaxBit technology on its site. The tool will allow customers to receive completed tax reports directly from the exchange.
The company will provide users with tax reports in the same format as required by the US Internal Revenue Service (IRS) from owners of crypt-currency assets. At the output, users will receive a completed tax report, which can be downloaded to the popular tax reporting software.
The Winklevoss Brothers
Tyler Winklevoss, CEO of Gemini, spoke about the new service:
„The TaxBit software automates the calculations required for tax reporting, helping to reduce problems associated with paying tax on crypt currency. Investors will also be able to see in real time the tax implications of any transactions they make with Gemini“.
The Winklevoss brothers invested a tidy sum (around $5 million) in the TaxBit platform in January this year. The tool is scheduled to be launched in the first half of 2021 or earlier – it all depends on how quickly the IRS issues guidance on how to report on crypt currencies to US citizens.
And reporting is likely to be necessary. On 26 July 2019, the US Internal Revenue Service (IRS) announced that it was beginning to send letters to American owners of cryptocurrencies advising them to pay taxes. By the end of August 2019, more than 10,000 taxpayers should have received the letters. The first to be happy were the customers of the popular Coinbase cryptographic exchange.
At the end of 2019, the US Internal Revenue Service updated the standard form that US taxpayers use to report their income – they were asked to answer the question: „During 2019, did you receive income related to any virtual currency by buying, selling, sending, exchanging or in any other way?