Binance has unveiled a tax calculator tool to tackle a surge in tax audits that have targeted individuals trading cryptocurrency.
Dubbed ‘Binance Tax,’ the tool aims to resolve the tax dilemma for the exchange users since it produces a variety of filing formats that the tax authorities often require. This service, which is completely free, enables users to generate well-organized crypto tax reports, which can then be downloaded for tax filing.
The reporting obligations for cryptocurrency continue to evolve at a breakneck pace, often lacking clear guidance from regulatory authorities.
Users can use Binance Tax to streamline and automate their crypto tax processes in one centralized location. The software will pilot in France before expanding to other markets globally later this year.
As crypto adoption continues to expand, many jurisdictions worldwide have mandated tax reporting on virtual currencies. The move highlights how regulators are not only concerned with combating cryptocurrency crimes, but also chasing those who use the digital asset class to hide their wealth or avoid paying taxes.
As such, Binance Tax addresses evolving needs as the crypto landscape continues to build momentum. Users can access a breakdown of trading activity by logging into https://www.binance.com/en/tax with their Binance account. Once logged in, users can select from ‘Realized Capital Gains’, ‘Income Gains’ or ‘Transactions’ and this will then generate a downloadable tax report, with a summary of any gains or losses.
“We’re always looking at how we can build products to make our customers’ lives easier and that often means listening and reacting directly to user feedback. We heard that our users wanted an easier way to be able to see and understand their taxes, so we’re excited to bring this new, free-to-use tax tool to our community, starting in France,” said Mayur Kamat, head of product at Binance.
Binance says it has worked with professional tax advisers to ensure that the calculation logic complies with available guidance and laws for filing crypto taxes in each supported jurisdiction.
Recently, there have been numerous reports emerging of tax authorities clamping down and going after cryptocurrency traders. The US Internal Revenue Service (IRS) also sent letters to taxpayers who might have failed to report income and pay the resulting tax from cryptocurrency transactions.
Most notably, the authority tweaked the previous instructions to include non-fungible tokens (NFTs) and stablecoins, replacing the term “virtual currency” with “digital assets”.
The IRS said it plans to make public criminal tax-evasion cases involving cryptocurrency, which opens a new front in the agency’s burgeoning scrutiny of the industry.
