With Sovos, we can react quickly to shifting cryptocurrency tax reporting regulations, helping to ensure our customers are just as protected as investors of other asset classes.
BOSTON (PRWEB) November 04, 2019
Global tax software leader Sovos today announced that Gemini, the cryptocurrency exchange and custodian co-founded by Cameron and Tyler Winklevoss, has selected Sovos for its tax information reporting needs. The Sovos Tax Information Reporting solution will automate Gemini’s 1099 forms and filings, reducing potential errors and delivering automatic regulatory updates in the everchanging cryptocurrency compliance landscape.
Launched in 2015, Gemini has grown into one of the most trusted cryptocurrency exchanges and custodians globally. Founded with compliance as a core organizational pillar, Gemini prioritized tax information reporting as critical to scalability in a market where regulations are still evolving. The exchange and custodian selected Sovos for its experience as the largest private filer to the IRS of 10-series tax forms, as well as for its leadership in addressing the compliance concerns of the alternative currency market.
“With Sovos, we can react quickly to shifting cryptocurrency tax reporting regulations, helping to ensure our customers are just as protected as investors of other asset classes,” said Joshua Rawlins, managing director, financial operations, Gemini. “Sovos provides services to some of the largest traditional financial services institutions and will bring that level of expertise and sophistication to address the reporting needs of our cryptocurrency customers in the upcoming 2019 tax season.”
Crypto tax guidance for exchanges and the investors they serve
Wendy Walker, solution principal at Sovos, said, “Since 2014, investors have demanded more clarification from IRS Commissioner Charles Rettig on the cryptocurrency income that should be reported to the IRS. And while many, including members of Congress, looked to the IRS to provide more guidance, investors were instead met with a threat of enforcement.”
In July 2019, the IRS sent three different letters to more than 10,000 cryptocurrency investors reminding them of their income tax obligations, indicating investors may have inaccurately reported their virtual gains or losses. The agency outlined penalties for failing to report income and pay crypto taxes. Last month, after five years of anticipation, the IRS announced an update to its cryptocurrency policy with more guidance for individuals, but the agency did not specify which forms crypto trading exchanges should use to report tax information to the IRS and to their customers.
“As cryptocurrency tax reporting continues to take shape, Sovos remains at the forefront of regulatory changes and can quickly adapt to rapid reporting requirement shifts,” said Paul Banker, general manager, Sovos. “We will help Gemini mitigate potential IRS penalty risk for its customers and proactively prepare for any upcoming changes from the IRS, staying ahead of competitors who will be trying to understand their tax compliance obligations.”
To learn more about Sovos Tax Information Reporting for cryptocurrency exchanges, 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 tax. As governments and businesses go digital, businesses face increased risks, costs and complexity. The Sovos Intelligent Compliance Cloud combines world-class regulatory analysis with its secure, scalable and reliable S1 cloud software platform to create 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. Headquartered in Boston, Sovos 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.
About Gemini Trust Company, LLC:
Gemini Trust Company, LLC (Gemini) is a cryptocurrency exchange and custodian that allows customers to buy, sell, and store cryptocurrencies like bitcoin, bitcoin cash, ether, litecoin, and zcash. Gemini is a New York trust company that is subject to the capital reserve requirements, cybersecurity requirements, and banking compliance standards set forth by the New York State Department of Financial Services and the New York Banking Law. Gemini was founded in 2014 by twin brothers Cameron and Tyler Winklevoss to build a bridge to the future of money.