Thomson Reuters has introduced a new product, GoSystem Tax RS, which provides virtual currency organization for 1040 preparation.
While legislation around cryptocurrencies have been slow, the IRS has introduced a new question on the 1040 form around whether an individual has invested in cryptocurrency. Now there is no way around it: Cryptocurrency investments must be disclosed and accounted for.
GoSystem Tax RS is described as a comprehensive single point of data entry and review for virtual currency transactions, including exchanges, forks, purchases and payment for services rendered. Preparers will be able to see and review these transactions in a central location and have the information reported on the appropriate tax forms.
In order to acquire reliable data, as cryptocurrency markets can be so volatile, Thomson Reuters has partnered with Verady, a firm that specializes in the accounting and reporting of cryptocurrencies and blockchain assets.
Verady is a crypto-focused accounting firm, providing cryptocurrency asset verification, accounting and audit technology products through its Ledgible platform. Ledgible allows investors, tax preparers and financial institutions to perform AICPA SOC-assured portfolio tracking and reporting of cryptocurrency activity. Ledgible was built to simplify the complex and confusing process of consolidating records from exchanges, wallets, blockchains and other cryptocurrency data sources.
Existing Ledgible users can create reports ready for GoSystem Tax and UltraTax, Thomson Reuters’ professional tax software for preparers to make the preparation process more efficient.