Coinbase taps IHS Markit for tax reporting tools
“We want to enable the public to file efficiently and easily during tax season, and to feel safe and secure doing so.”
Coinbase has selected IHS Markit to provide tax reporting information and infrastructure for the leading cryptocurrency exchange in the United States.
IHS Markit will create and deliver Forms 1099-MISC for Coinbase customers and the partnership is set to expand into additional reporting in the future.
In addition, the firm will assist Coinbase in their due diligence requirements through the collection, validation, and TIN matching of account holder Forms W-8 and W-9.
Lawrence Zlatkin, Global Vice President of Tax, Coinbase, commented: “Our partnership with IHS Markit is designed to bring clear, reputable tax filing tools for Coinbase customers. We want to enable the public to file efficiently and easily during tax season, and to feel safe and secure doing so. Our new Coinbase Taxes platform will offer simple and easy-to-follow resources and we’d like to thank IHS Markit for their partnership in bringing them to life.”
William Sheridan, Managing Director and Global Tax Solutions Commercial Lead, IHS Markit said: “With the recent Biden Administration Infrastructure bill and IRS guidance continuing to indicate that the scope of information reporting for taxable cryptocurrency transactions will only increase, firms are looking to maximize efficiency and reporting accuracy. We are excited to partner with Coinbase, who are best in class among cryptocurrency exchanges, to support them by providing industry leading solutions for their reporting and due diligence obligations.”
Coinbase has also recently been in the news for announcing the exchange will be starting direct deposits in the United States. This means its users would be able to convert a part of their entire salary into cryptocurrencies and opt to get paid in crypto or USD as well.
The amount deposited into the Coinbase account can then be used for trading or investing or it can be used to generate interest or can also be used for making payments.
Allowing free conversion of fiat to crypto and vice versa and by keeping the charges as nil or as minimal as possible, Coinbase has been making all kinds of efforts to drive the full-scale adoption of crypto.
In the meantime, the venue is also influencing the future regulatory framework in the country with a pitch addressed to Government officials.
This comes in the backdrop of the SEC threatening to sue the exchange if it went ahead with its plans to introduce its Lend product.
This threat had forced the exchange to backtrack on those plans as it thought it would be better not to stir the hornet’s nest at this point. But it doesn’t seem to have dropped the idea altogether as yet.