EY launches crypto app that helps with tax filings

Quick Take

  • EY has launched a crypto application that helps its U.S. users with tax filings
  • The app, called CryptoPrep, allows users to aggregate their crypto transactions and calculate capital gains or losses for tax purposes

“Big Four” professional consulting firm Ernst & Young (EY) has launched a web-based cryptocurrency application that helps its U.S. users with tax filings.

Called CryptoPrep, the app allows users to aggregate their crypto transactions and calculate capital gains or losses for Form 8949 of the Internal Revenue Service (IRS).

Users can provide EY a CSV file containing crypto transactions, or manually enter their transaction history in the app. They can also provide “read-only” access to API (application programming interface) keys from their crypto exchanges.

EY said it does not store API keys. “We use your keys to pull your transaction history and then we delete them.” So, “we do not have access to your cryptocurrency, only a history of your transactions.”

The CryptoPrep app supports over 1,000 coins and “most popular exchanges.” EY did not specify those exchanges. The app also allows users to add transactions from unsupported exchanges by selecting the ”Other” tile from the ”Sync Exchange” view within the app.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro