Avalara and Ledgible Partner to Solve for IRS Form 1099 Digital Asset Cost Basis Reporting

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Nov 12, 2024, 08:42 ET

ATLANTA, Nov. 12, 2024 /PRNewswire/ -- Ledgible, the leading platform for digital asset tax and accounting, today announced it has partnered with Avalara, Inc., a leading provider of tax compliance automation software for businesses of all sizes, to offer enhanced digital asset cost basis reporting for 1099s. The partnership will enable businesses to efficiently manage the complexities of cryptocurrency and digital asset tax reporting while maintaining compliance with IRS requirements.

Ledgible has partnered with Avalara, Inc. to offer enhanced digital asset cost basis reporting for 1099s.

Today's announcement comes as the IRS plans to roll out the new Form 1099-DA, which cryptocurrency brokers will begin using in 2025 to report sales and exchanges of digital assets by customers.

As digital assets continue to gain mainstream adoption, tax reporting for cryptocurrencies has become increasingly challenging for businesses. The partnership between Avalara and Ledgible simplifies the process, allowing businesses to confidently track and report cost basis information (the amount paid to purchase an asset) on digital assets, improving compliance with reporting standards set forth by the IRS.

With Avalara's proven compliance automation solutions, combined with Ledgible's expertise in digital asset tax reporting, businesses can integrate cost basis information into their tax forms with ease. This collaboration helps businesses maintain compliance, increase efficiency, and reduce risk associated with manual reporting.

"As the landscape of digital asset taxation continues to evolve, businesses must be equipped with the right tools to stay compliant," said Kell Canty, CEO of Ledgible. "Partnering with Avalara is a natural fit for us, as their comprehensive suite of tax solutions, combined with our digital asset expertise, provides a powerful solution for businesses navigating these new waters."

"As the IRS moves forward with implementing new withholding and reporting requirements for digital assets, our new partnership with Ledgible will solve for the unique complexity of cost basis reporting, made more so as acquisition of digital assets can occur via cash or by other property, including other digital assets," said Kael Kelly, General Manager, Avalara 1099 & W-9. "Avalara and Ledgible will work together to simplify digital asset reporting and compliance, reducing friction, increasing efficiency and giving customers greater control over compulsory IRS requirements."

About Ledgible
The Ledgible platform is built from the ground up to streamline digital asset tax information reporting and compliance. Ledgible ensures compliance for digital assets for some of the largest financial institutions in the world, including top 5 US banks, investment firms with $1B+ AUM, and top 10 crypto exchanges. As a SOC 1 & 2 Type 2 Certified platform, Ledgible is the trusted provider of choice for compliance and Form 1099 generation.

About Avalara
Avalara makes tax compliance faster, easier, and more accurate, reliable, and valuable for 41,000+ business and government customers in over 75 countries. Tax compliance automation software solutions from Avalara leverage 1,200+ signed partner integrations across leading ecommerce, ERP, and other billing systems to power tax calculations, document management, tax return filing, and tax content access. Visit avalara.com to improve your compliance journey.

Contact:
Jan Jahosky
407-331-4699
[email protected]

SOURCE Ledgible