On Tuesday, cryptocurrency tax preparation company, TaxBit, announced the launch of the TaxBit Network — a consortium of 20 centralized and decentralized exchanges (DEXs) — whose users are eligible to receive completed 2021 crypto tax forms for free. The TaxBit Network member companies are listed in this graphic below.
Generating crypto tax forms can cost hundreds of dollars each tax season. According to the company’s announcement, the TaxBit Network removes that expense with its purported free, accurate 2021 tax forms. Timed with the launch of TaxBit Network, many participating platforms will be incorporating a one-click TaxBit sign up within their native applications to further simplify access to 2021 tax forms and year-round access to TaxBit’s software.
The TaxBit Network provides users the ability to easily integrate their cryptocurrency exchange, DeFi, and NFT data from over 500+ sources. It also enables filers to see their tax calculations line-by-line and aggregate tax positions, and download completed IRS Forms 8949 and income reports that are ready to upload to popular tax filing software or hand over to an accountant.
The company states that its team of CPAs and tax attorneys have certified the accuracy of tax calculations related to platforms within the TaxBit Network, including reconciling tax forms to all Forms 1099 issued by such platforms.
It’s unclear from the company’s announcement if the free tax forms and access to the TaxBit software are permanently free or just for the 2021 tax season and next 12 months of software access. At the time of writing, we had not received a response from TaxBit to an email inquiry requesting clarity on that specific point.