By leveraging the Sovos platform, BlockFi can continue to grow quickly and release new financial products without worrying about murky cryptocurrency tax information reporting requirements.
BOSTON (PRWEB) June 09, 2020
Global tax software leader Sovos today announced that BlockFi, a financial services company focused on building products for cryptocurrencies, selected Sovos for its 1099 crypto tax information reporting needs. The Sovos Tax Information Reporting solution automated BlockFi’s 1099 forms and filings for crypto investor clients for the 2019 tax year while reducing potential errors and delivering automatic regulatory updates in the everchanging cryptocurrency compliance landscape.
Launched in 2017, BlockFi provides wealth management products to thousands of crypto investors across the globe. Building off its original crypto-backed loans, BlockFi now provides an interest account and a no-fee trading platform. The crypto financial services platform selected Sovos for its experience as the largest private filer to the IRS of 10-Series tax forms, as well as for Sovos’ leadership in addressing the compliance concerns of the digital currency market.
“Sovos works with some of the largest financial institutions in the world and partners with companies built for blockchain,” said Amit Cheela, senior vice president of finance at BlockFi. “By leveraging the Sovos platform, BlockFi can continue to grow quickly and release new financial products without worrying about murky cryptocurrency tax information reporting requirements.”
The IRS expects tax reporting on cryptocurrency, but the agency has not clarified guidance around the exact Form 1099 requirements. In the meantime, companies must interpret the regulations to help their clients understand taxable crypto events and avoid improper or under reporting of income to the IRS and applicable states. For companies like BlockFi, managing risk and maintaining compliance is critical to growing in a market rife with regulatory unknowns.
“As cryptocurrency tax reporting continues to take shape, the Sovos regulatory team remains at the forefront of changes, so we can help customers like BlockFi quickly adapt to rapid reporting requirement shifts,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos.
To learn more about protecting your digital asset company from the burdens and risks of cryptocurrency tax reporting, visit https://sovos.com/solutions/cryptocurrency-tax-software/.
Sovos is a leading global provider of software that safeguards businesses from the burden and risk of modern transactional taxes. As modern tax goes digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud is the first complete solution for modern tax, giving businesses a global solution for tax determination, e-invoicing compliance and tax reporting. Sovos supports more than 7,000 customers, including half of the Fortune 500, and integrates with a wide variety of business applications. The company has offices throughout North America, Latin America and Europe. Sovos is owned by London-based Hg. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
BlockFi is a financial services company focused on building products for crypto. The company services clients in over 100 countries, and in all 50 U.S. states. BlockFi’s offerings include interest-earning accounts, low-cost USD loans secured by crypto and zero-fee trading. BlockFi is backed by leading institutional investors and operates with a focus on compliance with U.S. laws and regulations. Learn more at BlockFi.com.