On Tuesday evening, May 12th 2020, the IRS sent out a Statement of Work soliciting private contractors to aid in the audits of cryptocurrency related tax returns.
The email that the IRS sent to CryptoTrader.Tax, a popular cryptocurrency tax software company that helps tens of thousands of U.S. citizens report their crypto taxes, is quoted below.
“To whom it may concern:
The Internal Revenue Service is engaging outside contractors to assist our Revenue Agents in calculating taxpayers’ gains or losses as a result of their transactions involving virtual currency. We are placing a few single-case contracts as pilots with a goal of publishing a solicitation and request for proposal for a larger multi-case contract. Attached is a sample Statement of Work describing the types of services we are looking for. I wanted to make you aware of our efforts in case your company has any interest in pursuing this type of work.”
The CryptoTrader.Tax team will not be pursuing this contract. Our full focus is on serving our customers and making the cryptocurrency tax reporting process as seamless as possible.
The following Statement of Work was included with the solicitation.
CryptoTrader.Tax is a crypto tax calculator and software platform built to automate the entire crypto tax reporting process. Tens of thousands of crypto and bitcoin investors use the platform today to handle their tax reporting.
By integrating with major exchanges and platforms, CryptoTrader.Tax allows users to import their historical transactions directly into their account. Once this data is imported, users can generate capital gains and losses reports as well as an auto-filled Form 8949 with the click of a button.
These tax reports that CryptoTrader.Tax generates based off your historical data can be taken to your tax professional or imported directly into your preferred tax filing software like TurboTax or TaxAct.
You can import all of your transactions and get a preview of your capital gains and losses completely for free with CryptoTrader.Tax. Learn more about how it works here.
For more information on how the IRS treats cryptocurrencies for tax purposes, checkout our complete guide: The 2020 Cryptocurrency Tax Guide.