Popular spot and futures platform selects tax and compliance software provider for 1099 and other third-party crypto reporting
Global tax software leader Sovos today announced the launch of its integration with ErisX, a leading platform for investors for trading crypto spot and futures, to assist ErisX members with their 1099 crypto tax information reporting needs.
ErisX is an exchange and clearinghouse that includes a Commodity Futures Trading Commission-regulated futures market for Bitcoin and Ether, as well as a 24/7 spot market for Bitcoin, Bitcoin Cash, Ether and Litecoin. ErisX’s work with Sovos comes in the midst of the 2021 tax season in which the IRS has continued its efforts at tax compliance related to cryptocurrency assets. This year, the agency moved the virtual currency question to page one of the Form 1040 and adjusted crucial language about which cryptocurrency transactions must be disclosed. In March, the IRS updated FAQs in order to provide additional information for tax filers.
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”We have established relationships with industry leading-firms such as Sovos to help our Members trading and holding crypto calculate and report their taxes appropriately,” said Bryan Stuart, chief financial officer, ErisX. “Sovos will help us provide ErisX Members with tax reporting information that will support their filing efforts and discussions with their tax advisors.”
Sovos, which is a member of The Wall Street Blockchain Alliance and The Chamber of Digital Commerce, monitors crypto tax changes and advises customers of the evolving tax reporting regulation of cryptocurrency in the United States.
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“ErisX sought a tax software provider that could accommodate for both rapid growth and expanding tax information reporting demands,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos. “As the largest private filer of 1099 forms, Sovos will ensure ErisX customers meet all tax reporting regulations during the 2021 tax season and beyond.”
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