One of the top four auditing giants, Ernst & Young LLP, rolled out a cryptocurrency-reporting tool for accounting and tax purposes, according to a company press release published on March 4.
Primarily meant for the calculation of taxes on cryptocurrency transactions, the tool is called the EY Crypto-Asset Accounting and Tax tool [CAAT]. The tool will be rolled out in the United States prior to its introduction in other markets and is an effort by the company to boost its blockchain-related services.
The company rolled out CAAT owing to the massive increase in cryptocurrency investments by EY’s clients in the recent years and the rise in institutional interest. Further, the press release stated that the tool will be offered to institutional and individual clients who indulge in cryptocurrency trading.
Marna Ricker, EY America’s Vice Chair of Tax Services, said,
“We are excited to offer an innovative technology specifically to address our clients’ needs in the crypto-asset space.”
EY CAAT will allow users to pool all their transaction-level information from major exchanges and gather data from different sources to automatically produce reports, allowing simpler IRS tax returns pertaining to cryptocurrencies.
Chirag Patel, EY Foundry Leader, said,
“EY CAAT is a timely addition to our expanding portfolio of successful new digital businesses at the Foundry.”
The service will be accessible to the auditor’s high-net-worth clients through the EY Private Client Services practice.
Michael Meisler, Partner and EY Global Blockchain Tax Leader, stated,
“EY CAAT is the hallmark of our efforts in crypto-assets and blockchain from a Tax perspective globally, and we will continue to work hard to make it the product of choice for EY clients.”
Currently, Ohio is the only US state that allows businesses within its borders to pay their taxes in Bitcoin [BTC]. State officials are looking to expand this offering to include individual taxpayers soon.
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