BOSTON, March 30, 2021 /PRNewswire-PRWeb/ -- Global tax software leader Sovos today announced that cryptocurrency P2P lending platform Celsius has selected Sovos for its 1099 crypto tax information reporting needs. U.S.-based investors, borrowers and lenders who traded on Celsius in 2020 will receive automated 1099 forms and filings in the upcoming tax season through the Sovos Tax Information Reporting solution.
Celsius' adoption of Sovos demonstrates the crypto platform's commitment to ensuring its customers remain compliant with evolving crypto regulations and avoid potential financial penalties from the Internal Revenue Service (IRS). In August, the IRS reaffirmed its commitment to ensure taxpayers file their cryptocurrency assets, moving the virtual currency question to page one of the standard 1040 form and clarifying crucial language about which cryptocurrency holdings and transactions must be disclosed to the agency.
"At Celsius, we believe that we should only do what is in the best interests of our customers, including protecting our users from unnecessary risk," said Daniel Leon, Chief Operating Officer, Celsius. "Sovos' bench of customers, including some of the largest traditional financial service institutions, and its team of regulatory experts will mitigate potential IRS penalties for our investors and prepare Celsius for any reporting changes in the future."
As a member of the Accounting Blockchain Coalition,The Chamber of Digital Commerce, and the Wall Street Blockchain Alliance, Sovos is at the forefront of changes and evolving guidance from the IRS around cryptocurrency reporting. As United States regulation of cryptocurrency develops, virtual asset service providers need reporting solutions in order to interpret the IRS' guidance and streamline investors' 1099 forms. Given the high volume of transactions on platforms like Celsius, it's imperative to use automated tax reporting software to reduce the burden on staff, eliminate human error and better track high-frequency crypto transactions.
"In tax season, crypto platforms need experienced partners to provide insight into IRS guidance and simplify an intimidating, complex process," said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos. "Celsius users can feel confident knowing the most trusted source of 1099 reporting has their backs. Sovos takes the guesswork out of tax reporting."
Celsius joins other cryptocurrency exchange platforms – such as Bitstamp, Paxos and BlockFi – that also use Sovos for high-volume crypto tax reporting. As a trusted partner, Sovos is the largest private filer to the IRS of 10-Series tax forms and can quickly adapt to the compliance needs of the cryptocurrency market.
To learn more about Sovos' full reporting automation capabilities for cryptocurrency companies and exchanges, visit https://sovos.com/solutions/cryptocurrency-tax-software.
About Sovos
Sovos was built to solve the complexities of the digital transformation of tax, with complete, connected offerings for tax determination, continuous transaction control compliance, tax reporting and more. The company supports more than 12,000 customers, including half of the Fortune 500, that operate in over 70 countries. Its SaaS products and proprietary Sovos S1 Platform integrate with a wide variety of business applications and government compliance processes. Sovos has employees throughout the Americas and Europe, and is owned by Hg and TA Associates. For more information visit http://www.sovos.com and follow us on LinkedIn and Twitter.
About Celsius
Celsius helps hundreds of thousands of consumers worldwide to find the path towards financial independence through a high compounding reward income wallet and instant low-cost loans accessible via a web and mobile app. Built on the belief that financial services should only do what is in the best interests of the customers and community, Celsius is a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions. For additional information please visit http://www.celsius.network
Celsius users are responsible for reporting and paying their taxes.
Media Contact
Christina Dela Cruz, ARPR on behalf of Sovos, 8553008209, [email protected]
SOURCE Sovos
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