Crypto Tax Startup ZenLedger Partners with AI-Powered Tax Software Startup April
Crypto tax startup ZenLedger has formed a new partnership with AI-powered tax software startup April to better serve its U.S. customers who may be concerned about filing their taxes this year.
According to the two companies, cryptocurrency taxation has become more complex as interest in digital assets investing and trading grows. Individuals and businesses often have to use multiple tools and platforms to meet their tax compliance needs.
The Internal Revenue Service (IRS) is still figuring out how to treat the use of cryptocurrencies by individuals and businesses. The IRS recently stated that people engaged in trade or business must report any crypto transactions of $10,000 or more, but the exact requirements are not clear.
ZenLedger aims to simplify the filing process by integrating with April, an IRS authorized e-file provider. Users can import their trade data into April’s platform with a single tap.
“By consolidating the entire tax experience into a single filing platform, traders can import their transaction data through a seamless user experience that reduces the risk of potential errors and inaccuracies,” said Ben Borodach, CEO and co-founder of April.
Growing Need for Comprehensive Crypto-Specific Tax Solutions
With the approval of spot bitcoin ETFs and the maturing of the cryptocurrency market, there is an increasing demand for comprehensive tax solutions specifically tailored for crypto traders in the U.S.
ZenLedger co-founder and CEO Pat Larsen emphasized the importance of correctly filing taxes now to avoid future audits. The Treasury Department is working on ensuring that all crypto exchanges and wallets report activity, making accurate tax filing crucial.
The IRS has already taken steps to monitor cryptocurrency transactions by including a question about digital currency ownership on its 1040 form.
ZenLedger has received investment from Mark Cuban’s Radical Ventures, Bloccelerate VC, and Three Point Capital. April recently launched a complete version of its tax solutions.
Hot Take: Crypto Tax Startups Partner to Simplify Filing Process
Crypto tax startup ZenLedger has teamed up with AI-powered tax software startup April to streamline the tax filing process for U.S. customers. With the increasing complexity of cryptocurrency taxation and the evolving regulations by the IRS, individuals and businesses often struggle to meet their tax compliance needs. By integrating with April’s platform, ZenLedger aims to provide a simplified filing experience on a single platform. Users can easily import their trade data into April’s software, reducing the risk of errors and inaccuracies. This partnership comes as demand for comprehensive crypto-specific tax solutions grows in the U.S. market, with crypto traders seeking confidence when reporting their activity.
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