Gemini Exchange Automates U.S. Tax Reporting

Gemini, the US cryptocurrency exchange, has hired Sovos to improve the convenience of filing tax reporting for U.S. tax payers.

Platform will use
Sovos technology for automating the filing of tax form 1099 and applications to the IRS. It is expected that this decision will reduce potential errors caused by the human factor, and will ensure automatic updating of regulatory documents.

Gemini chose Sovos for her experience with tax reporting. Currently, the company is acting as the largest private registrar of 10-series forms for the United States Internal Revenue Service (IRS). In addition, Sovos has experience in resolving tax issues in alternative currency markets. Gemini Managing Finance Director Joshua Rawlins commented:

“Thanks to Sovos, we can quickly respond to changes in the rules of taxation of cryptocurrencies and provide our clients with the same protection as investors of other classes of assets. Sovos will provide services to the largest traditional financial institutions and will provide this level of knowledge and experience to meet the needs of our customers when working with cryptocurrencies and submit reports in the upcoming tax season of 2019. “

US IRS recently added
cryptocurrencies in the taxpayer reporting form, and previously published
The first five-year guide to calculating taxes on cryptocurrency transactions, as well as when receiving new coins as a result of forks and distributions by developers.

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Recall that in August this year, the IRS began to pursue traders for inaccurate information about cryptocurrency earnings. In July, it became known that the U.S. Internal Revenue Service plans to develop more sophisticated ways to track traders who shy away from paying taxes on cryptocurrency earnings.