Crypto Tax Software BearTax Using Machine Learning To Automate Crypto Taxation Reporting

News | February 7, 2020 By:

Cryptocurrency tax software provider BearTax has applied the latest machine learning technology to its smart matching algorithm.

Launched in 2018, BearTax is a cryptocurrency tax software for individuals and accountants to calculate gains and file taxes on capital gains. It is integrated with 60 major exchanges, including Binance, Bittrex, Coinbase, Coinbase Pro, Gemini, KuCoin, Binance US, and support professionals help users integrate trades from almost every exchange in the world.

In a press release, BearTax said that its smart matching algorithm is now enabled by the latest AI and machine learning technologies. The algorithm automatically identifies 90% of all crypto transactions, including those completed on-chain, off-chain or via the Lightning Network or within the DeFi ecosystem.

“By using the latest AI and machine learning technologies, BearTax’s smart matching algorithm, available to all users without a paywall, is expected to save businesses and investors hundreds of millions of dollars in tax liabilities this tax year, by correctly identifying which events are taxable, thereby reducing the liabilities caused by human error,” BearTax said.

Machine learning and AI will enable BearTax’s smart matching algorithm to identify the movement of crypto between wallets and exchanges based on predefined parameters, thus assigning the right cost basis. The algorithm also provides a full transaction by transaction audit trail that any CPA or IRS investigator can easily verify the accuracy of a users’ tax calculations.

“This will save valuable time and resources for accountancy firms and CPAs this tax filing season who need to trust the data they are being provided and who are also struggling to stay abreast of the IRS’s changing guidance when it comes to cryptocurrency taxation.” said Saurav Bhandari, in-house CPA at BearTax.