Crypto asset derivatives exchange calls on two leading data providers to help customers accurately report taxable income to the IRS
Lukka, the leading crypto asset software and data provider, announced today it is collaborating with IHS Markit to create and deliver Forms 1099-B to LedgerX and its trading customers. The three firms believe that tax reporting accuracy is essential as regulation of the crypto asset ecosystem continues to mature.
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“With the recent IRS guidance and FAQs continuing to indicate that taxable cryptocurrency transactions remain reportable, firms are looking to maximize efficiency and reporting accuracy”
LedgerX is a leading crypto derivatives exchange and clearinghouse regulated by the US Commodity Futures Trading Commission (CFTC) and therefore is providing its customers with IRS Forms 1099-B that report gains and losses incurred over the tax year. Lukka will play the key role of collecting and processing the trading and gain/loss data of LedgerX’s crypto derivatives customers, including activity on futures, options, and swaps. With the standardized and orderly data, IHS Markit will then generate the Forms 1099-B and file them electronically with the IRS.
This is Lukka and IHS Markit’s first partnership focused on Form 1099-B reporting. Lukka believes that other regulated crypto asset and crypto asset derivative exchanges will continue to seek trusted providers like itself and IHS Markit to assist their customers with tax reporting needs.
“Our traders expect a straightforward, smooth tax reporting experience. As a federally regulated exchange and clearinghouse, we are strongly committed to compliance and data accuracy. Lukka’s tech-forward approach and expert tax team caught our attention early on in our search for a reporting partner. We look forward to better serving our customers by integrating with their industry-leading tax solution,” said Zach Dexter, CEO at LedgerX.
“With any industry that is innovating as much as the crypto industry, traditional processes such as tax reporting can be challenging,” said Robert Materazzi, CEO of Lukka. “We need to thoroughly understand the underlying data, applicability of tax rules, and think through the customer experience. LedgerX has a customer focused culture, which Lukka is privileged to support together with our trusted partners at IHS Markit.”
“With the recent IRS guidance and FAQs continuing to indicate that taxable cryptocurrency transactions remain reportable, firms are looking to maximize efficiency and reporting accuracy,” said William Sheridan, Managing Director and Global Commercial Lead, IHS Markit Tax Solutions. “We are excited to partner with Lukka, who are best in class among crypto data providers, to support LedgerX by providing best in class solutions for their reporting obligations.”
