Blox.io is a platform for encrypted tracking, management and accounting solutions. Blox has published a study "The Crypto CPA Insights Report" on tax returns. The study describes the difficulties faced by crypto owners and the CPA for the correct tax return. The report also provides an overview of the barriers faced by individual investors and corporations in tracking and managing their digital assets in detail. The report also provides an overview of the emerging sector of cryptographic accounting.
As reported by BTC-ECHO on July 29, the Internal Revenue Service planned to contact more than 10,000 Bitcoin owners who did not pay taxes on their transactions by mail.
As part of this first survey of the US tax administration, Blox says that only 5% of US accountants believe that their clients are able to disclose a complete and accurate tax return.
It can happen deliberately, but also unconsciously. Because 98% of CPAs said that missing or inaccurate data should primarily lead to cryptographic billing errors. In addition, the cryptocurrency tax rules are poorly understood, as are government regulations and guidelines on how to properly manage digital assets.
Can a clear statement to the tax authorities be possible?
Founder Sharon Yip of Crypto Tax Advisors said in a Press release this:
If a company has created 1,000 transactions a day with 100 different portfolio addresses for 30 different departments, organizing and tracking these deals is like finding a needle in a haystack.
Sharon Yip also said investors found it dangerous to bet on trade. Some exchanges only document transactions for a few months, others are closed. This makes it almost impossible to calculate profit and loss and can have legal consequences.
To this end, BTC-ECHO reported in May to what extent taxes on the proceeds of cryptographic transactions increased. In addition, the Swiss start-up Accointing offers a tax tool to traders. The tool helps to monitor the portfolio and provides tax assistance.
Alon Muroch, CEO of Blox, also sees one of the biggest problems with the missing infrastructure and said:
This is an entirely new industry and most investors and accountants are still learning the basics. One of the biggest problems is the lack of infrastructure. The more cryptographic transactions are generalized, the more intelligent tracking and management tools are essential. A human error can have serious consequences.
According to reports, 93% of CPA believe that there will be smart software solutions for crypto-tax in the near future. In addition, 81% advocate a strengthening of the automation and control system DatenpeicBitcoin.