EY Claims That They Will Make it Easier To Calculate Crypto Taxes With A New Tool

EY a “Big Four” consulting firm recently launched a new tool which will help cryptocurrency users with their tax and accounting calculations.

Announced by the firm on Monday, the software solution dubbed EY Crypto-Asset Accounting and Tax (CAAT) was designed to help U.S customers prepare their Internal Revenue Service (IRS) tax returns related to crypto assets.

CAAT’s software can easily source information from “virtually all major exchanges,” according to the firm by collating data from a myriad of sources as well as automating the production of various dashboards and reports and ultimately tax returns too.

The firm’s product is aimed at both institutional clients and the individual, as EY has stated that it has seen “significant” growth in the number of customers who hold and trade digital assets.

The firm stated:

“From a retail client perspective, the product will be leveraged for high net worth individuals served by the EY Private Client Services practice and made available to users of EY TaxChat, a mobile tax preparation service that pairs users with licensed and experienced EY professionals who prepare individual tax returns.”

Furthermore, the firm stated that its software will be to the benefit of asset management firms specifically as crypto assets continue to both evolve and increase in their uses.

Partner and global blockchain tax leader at EY, Michael Meisler stated:

“The initial validation we have received from the market has been phenomenal, but it only represents the beginning.”

Due to the calculation of crypto taxes being a frustratingly complex process, tools and software which aid in the process are becoming increasingly popular. Recently, Coinbase implemented TurboTax, a tax-filing plugin which was created by Intuit Consumer Tax Group, for its customers in the United States.

At the same time, Coinbase also integrated CoinTrack, which is a Y Combinator-backed crypto and bitcoin tax software manager developed by former Google employees to aid their customers further.

With the advent of tax-tools on the rise in the US, it’s only a matter of time before these kinds of software become the norm for the crypto ecosystem around the world.