NEW YORK., May 09, 2022 — Deloitte Tax LLP and TaxBit today announced a strategic alliance to help organizations that transact in digital assets comply with tax information and cost basis reporting requirements. Pairing Deloitte’s deep tax technical knowledge and experience working alongside digital asset businesses with TaxBit’s SaaS digital asset reporting platform can help companies realize enhanced value navigating the quickly evolving and expanded requirements, including transaction-level cost basis tax reporting. Companies operating in the digital asset marketplace have an imme ..read more

The Financial Accounting Standards Board (FASB) unanimously voted to add digital asset accounting to its technical agenda on May 11, 2022.  While this vote doesn’t change any current accounting rules, it does highlight the growing importance of the digital assets space; the vote suggests the FASB could issue accounting guidance more tailored to digital assets and better aligned with the economic characteristics of this asset class at some point in the future.  During its public meeting, the FASB and its staff acknowledged the significant growth in the digital assets industry, the sho ..read more

Today, TaxBit, the leading tax and accounting software provider for the tokenized economy, announces two key executive hires – Tramale Turner, previously Head of Seattle Engineering and site lead at Stripe, and Vivek Garg, previously Director of Engineering at Meta. Turner joins TaxBit as its Chief Technology Officer to lead its rapid expansion. Prior to joining TaxBit, Turner was Stripe's Seattle Engineering Hub Lead, where he focused on core infrastructure and compliance and led a campus of 1,000+ employees. Garg joins TaxBit as its VP of Engineering. Prior to joining TaxBit, Garg ..read more

Non-fungible tokens (NFTs) are one-of-a-kind tokens that can’t be duplicated and have inherent value derived from their uniqueness. But how do NFTs come to be stored on the blockchain? And how are you able to sell an NFT?  Before a sale can be made, an NFT needs to be minted. We provide a basic overview of what the term minting means in the crypto space before diving into what it means to mint an NFT. Learn more about how you can mint your NFTs, potential costs, and the tax implications of NFT sales. What does minting mean in crypto?  Minting crypto means transactions on the blockcha ..read more

When news broke that the IRS conceded a lawsuit filed by a Tennessee couple the Jarretts,  social media and other news outlets were ablaze with commentary about the apparent victory for the cryptocurrency community. The Jarretts case related to a refund of approximately $4,000 in taxes paid on coins received for staking on the Tezos network. Shortly after, legal and tax experts weighed in, calmed the waters, and explained the concession wasn’t as big of a victory as it initially appeared to be.  Unless the IRS makes an express statement about the matter, it’s unlikely the concession ..read more

SEC Staff Accounting Bulletin (SAB) 121 was released on March 31, 2022.  The bulletin’s purpose was summarized as a way to “[express] the views of the staff regarding the accounting for obligations to safeguard crypto assets an entity holds for platform users.” Commissioner Hester M. Peirce quickly published a dissent upon its release. Peirce questioned the timing and process of the bulletin, sought to acknowledge the SEC’s role in creating some of the regulatory risks highlighted in SAB 121, and wondered if a bulletin was in fact an appropriate approach to publicly communicate this accou ..read more

You know it's a big deal when Etherscan labels your address.  On March 29, 2022, Axie Infinity reported a loss of over $625 million USD caused by an attack on the Ronin network.  The attacker used hacked private keys to withdraw this eye-popping amount in two transactions, one for 173,600 ether (ETH) and the other for 25.5 million USD Coin (USDC)—one of the largest hacks in the history of decentralized finance (DeFi).  But how did this happen? Our article explores the circumstances that paved the way for such an attack. What is Axie Infinity?  Axie Infinity is a game where ..read more

As you delve deeper into the world of decentralized finance (DeFi), you’ll inevitably run into the term smart contract.   If you’re going to conduct business and transactions on the blockchain, there’s a good chance you’ll be using a smart contract to guarantee the deal is executed properly.  In our article we review the basic definition of a smart contract, advantages and disadvantages of the technology, and how they function on popular blockchains like Ethereum.   What are smart contracts?  Smart contracts describe computer code stored on a blockchain-based plat ..read more

TaxBit is proud to share that we’ve successfully completed a SOC 1, Type 1 examination and audit to cover our Corporate Accounting Suite. The audit was conducted by Armanino LLP and demonstrates our commitment to maintain the highest standard of controls for our industry-leading enterprise accounting solutions.  What is the significance of a SOC 1, Type 1 examination and audit?  The SOC 1, Type 1 audit provides independent and objective validation of TaxBit’s financial operations and customer reporting. It ensures our systems are designed with controls to mitigate the risk of data er ..read more

On Wednesday, March 9, 2022, President Biden released an executive order to ensure responsible development of cryptocurrency and other digital assets and provide additional context for his administration’s crypto adoption strategy.  It’s important to note that the executive order isn’t imposing any new rules or legal requirements; it only commissions studies by various agencies.  The studies will take place over the next 180 days and result in a report that could map out the future of crypto regulation. What is in Biden’s cryptocurrency executive order?  The executive order lays ..read more