Deloitte and TaxBit Form Alliance to Meet Exponential Market Demand for Digital Asset Tax Information and Cost Basis Reporting Support

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May 09, 2022, 08:00 ET

Alliance to offer a flexible solution to address quickly evolving digital asset market and growing reporting requirements

NEW YORK, May 9, 2022 /PRNewswire/ -- Deloitte Tax LLP and TaxBit today announced a strategic alliance to help organizations that transact in digital assets comply with tax information and cost basis reporting requirements. Pairing Deloitte's deep tax technical knowledge and experience working alongside digital asset businesses with TaxBit's SaaS digital asset reporting platform can help companies realize enhanced value navigating the quickly evolving and expanded requirements, including transaction-level cost basis tax reporting.

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Companies operating in the digital asset marketplace have an immediate priority to determine the applicability of the requirements and comply with Form 1099 reporting, effective Jan. 1, 2023. Deloitte and TaxBit's alliance enables companies to have a solution in place to track transaction-level data that will facilitate accurate and timely reporting.

Deloitte and TaxBit believe that together they can empower clients to develop efficient compliance processes for digital asset transaction-level reporting and mitigate risk. Further, the alliance will support clients as they seek to remain compliant as they enter new markets and products by combining Deloitte's tax technical knowledge and system implementation experience with TaxBit's leading software platform.

"Any company that facilitates crypto transactions must immediately consider how they will remain compliant with the new digital asset transaction and cost basis tax reporting requirements," said Rob Massey, partner, tax blockchain and digital assets leader, Deloitte Tax LLP. "Deloitte's alliance with TaxBit offers a unique opportunity that combines our 10 years of tax technical experience in the digital asset space with TaxBit's market-leading software. We see this as a huge win for our clients who are seeking a solution they can implement now, and we are thrilled to continue leading the market by offering it first."

Austin Woodward, CEO of TaxBit, commented, "We are excited to combine the deep experience of Deloitte with TaxBit's industry-leading software. TaxBit anticipated broker reporting requirements for digital assets several years ago and accordingly built Enterprise tailored, API-first Tax Center Suite solutions to automate such regulatory requirements in a user-centric manner. Deloitte has invested in its digital asset practice early on and has developed a reputation for industry excellence. This alliance adds immense value to clients and will help propel digital asset adoption forward."

"By applying Deloitte's experience across many digital asset types and spanning the entire ecosystem, our team already supports clients with tailored services in legal entity structuring, tax methods, tax revenue recognition, cross border transactions and much more," said Robert Guarnieri, principal, Deloitte Tax LLP. "We are thrilled to announce this alliance with TaxBit, which will greatly expand the depth and breadth of support we can provide organizations in every sector and across the full life cycle from formation, funding, and operations, to growth and exit."

About TaxBit
Designed by CPAs and tax attorneys, TaxBit is the leading tax and accounting solution for the tokenized economy. TaxBit's platform serves the industry's top exchanges, businesses, governments, and individuals. TaxBit has raised over $230 million from the world's top investors in order to enable the widespread adoption of digital assets by automating the regulatory tax and accounting compliance hurdles at scale. TaxBit has HQs in Salt Lake City and Seattle.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 7,000 private companies. Our people come together for the greater good and work across the industry sectors that drive and shape today's marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Building on more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's more than 345,000 people worldwide connect for impact at www.deloitte.com.

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SOURCE Deloitte