Bitcoin Tax Software NODE40 Now Supports Coinbase Usersbr>
Blockchain governance company Node40 has announced that its bitcoin tax software, called NODE40 Balance, now support Coinbase account holders.
Based in New York, Node40 provides tax compliance to cryptocurrency traders globally. On January 30, Canadian cryptocurrency mining company Hashchain Technology announced that it reached a deal to acquire Node40 for $8 million, subject to the approval of the TSX Venture Exchange. The deal is expected to close in the next few days.
NODE40 Balance allows users to conduct accurate tax compliance using intuitive, easy-to-use software that analyzes the blockchain, calculates exact net values from each transaction, and tracks the cost basis and days carried. It automatically calculates gains and losses from trades and syncs them to a 8949 tax report form which can be sent to the Internal Revenue Service (IRS).
Coinbase, the largest cryptocurrency exchange globally, boasts over 13 million users and has funding from the New York Stock Exchange, Bank of Tokyo, Draper-Fisher-Jurvetson, Institutional Venture Partners and Andreesen Horowitz. The exchange links individual bank accounts to buy and sell access against four leading cryptocurrencies, bitcoin, Bitcoin Cash, ethereum and Litecoin.
There is no formal agreement between Coinbase and NODE40, but Coinbase users can import their own personal information and transaction history onto a compatible piece of software. NODE40 said they have built the bitcoin tax software to allow users to create a ledger from an exchange. Coinbase users simply type in their Coinbase username and password on NODE40 Balance and it imports all of their past transactions. Then, the capital gains, or losses, are carried into Form 8949, which can be sent to the IRS at tax time.
“Similar to traditional banking, cryptocurrency owners tend to have multiple accounts,” said Perry Woodin, founder of NODE40 and CSO of HashChain. “As with traditional bank accounts, cryptocurrency accounts will have related transactions. Credits and debits need to be reconciled so the account owner is not over or under reporting gains and losses. NODE40 Balance gives users the ability to see transaction activity across disparate accounts, making reconciliation easier.”
Coinbase has been locked in a war with the IRS over customer records. In November 2017, the most recent development in the Coinbase IRS summons included the handover of more than 14,000 Coinbase user accounts who have either bought, sold, sent or received at least $20,000 worth of bitcoin in a single year between 2013 and 2015.
Woodin believes that the majority of these individuals did not know they were required to report their gains or didn’t have the confidence in any pre-existing software, tools, or tax reporting programs. He added that NODE40 Balance is designed specifically to solve all of these problems and he believes the timing is right.
“The new economy is here to stay, adoption is coming fast from all directions, and it’s evolving by the day,” said Woodin.