Node40 Adds Bitcoin Support on Tax Software
Blockchain governance company Node40 has added bitcoin tax reporting support on its Software as a Service (SaaS) offering, Node40 Balance. The new service follows the introduction of blockchain accounting software for Dash users.
Node40 Balance 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).
“Not only is blockchain accounting inherently complicated, it’s currently under heavy legal scrutiny. Since the IRS considers digital currency property, each and every input to a transaction has a potential gain or loss,” said Node40 CEO of Perry Woodin. “Tracking the cost basis and days carried on every input to a transaction is simply not possible without sophisticated software. Nobody wants to think about gains and losses when purchasing goods or services, much less manually record transactions in a spreadsheet for future record keeping. Node40 Balance allows digital currency owners to use the blockchain as the public ledger it was always intended to be, and provides users with the most accurate data for their reporting obligations at tax time.”
Node40 said the best example of the need for this service is the ongoing Coinbase vs IRS lawsuit.
“The IRS Coinbase summons motivated Dash owners to use our service and get their records in order for the 2016 tax season, and bitcoin owners have well and truly been put on notice,” said Woodin. “The voluntary compliance rate for United States citizens is over 80%, which makes it obvious that most people take reporting their tax liability seriously. We believe bitcoin users haven’t had the right tools available yet. If the industry wants digital currency transactions to become commonplace, an integrated service like Node40 Balance is essential. It validates the legitimacy of a new, complex form of transacting, and compliance is crucial to bringing a new technology into the mainstream.”
Node40 Balance’s bitcoin service is available for Electrum wallet users with pending integrations for Exodus and Trezor.
