Crypto accounting firm and CPA.com partner to roll out new software ahead of tax season
A partnership between crypto software company Lukka and accounting service CPA.com is building crypto tax tools for accountants, according to a joint release. The two have plans to unveil their "LukkaTax for Professionals" in mid-January, enabling companies to onboard and serve clients reporting digital transactions.
The platform will provide both education and tools for accountants in the digital asset space, which Erik Asgeirsson, president and CEO of CPA.com said is of growing importance in the wake of Internal Revenue Service (IRS) activities this year.
Indeed, in August, the IRS sent out thousands of notices to cryptocurrency holders, some of which listed monetary amounts still owed to the regulator. Additionally, taxpayers will be prompted to disclose if they own crypto on the new 1040 tax form. These notices shortly followed after the IRS published new cryptocurrency tax guidance, which requires taxpayers to pay taxes on crypto received from a hard fork.
Lukka and CPA.com pointed to the 1040 change as a "recognition of the growing ownership of digital assets," in their release.
"The number [of people owning crypto] is expected to grow swiftly in the years ahead, and the IRS has made it clear it is stepping up enforcement on taxpayers who haven't made a good-faith effort to declare virtual currencies in tax calculations," read the joint statement.
