Copy link
Increase text size
Decrease text size
Link copied

Crypto tax compliance firm TaxBit secures $5M from Winklevoss Capital, Valar Ventures and others

Tue, 07 Jan 2020, 03:38 am UTC

Crypto tax compliance startup TaxBit has raised $5 million in a seed funding round which saw participation from leading venture capital firms.

According to a press release, the round drew support from Fintech venture firm, TTV Capital, Dragonfly Capital Partners, Collaborative Fund, Winklevoss Capital, Valar Ventures, Global Founders Capital, Table Management, Album VC, and others.

Founded in 2018, TaxBit aims to enable widespread cryptocurrency adoption by automating the regulatory hurdle of tax compliance. It intends to use the fresh funding to further enhance its products and accelerate customer growth, both in the United States and internationally in regions including Canada, UK, and Australia.

Tax filing complexities

Filing taxes can be quite an intimidating process. The Internal Revenue Service (IRS) sent out audit notices to US cryptocurrency traders past summer, followed by new cryptocurrency tax guidance released in the fall. The regulator has also 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.

"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,” Winklevoss Capital Partner, Sterling Witzke, said.

TaxBit’s consumer and enterprise products

TaxBit said that its consumer product, launched last January, has helped thousands of cryptocurrency users automate their taxes. Often referred to as the "TurboTax of crypto”, the solution is easy to use, enabling users to produce all of their required crypto tax forms in minutes.

In 2019, TaxBit also rolled out its enterprise tax center suite that is now being deployed by cryptocurrency exchanges and merchants. The tax center suite facilitates tax compliance for enterprises and their users through a technology-driven platform.

Austin Woodward, CEO and Founder of TaxBit (as well as CPA) said that TaxBit will help 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,” he said.

Last month, Thomson Reuters, in collaboration with Verady, announced a new cryptocurrency tax tool. It said that its GoSystem Tax RS product will soon launch a Virtual Currency Organizer that will help address the tax reporting issues related to cryptocurrencies.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • Bitcoin (BTC) $9,485.53 (-0.88%)
  • Ethereum (ETH) $233.48 (-1.84%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $247.74 (+1.73%)
  • Bitcoin SV (BSV) $194.66 (-0.02%)
  • Bitcoin (BTC) $9,485.53 (-0.88%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.