TaxBit, a cryptocurrency tax compliance company, reported a $5 million seed round, with some of the biggest names in the industry participating. TaxBit raises $5 million in funding to enhance the crypto tax reporting platform.
Based in Salt Lake City, TaxBit was introduced in January 2019, and has helped thousands of users of cryptocurrency to automate their taxes.
Investors in the seed funding include many companies such as:
- TTV Capital
- Dragonfly Capital Partners
- Collaborative Fund
- Winklevoss Capital
- Valar Ventures
- Global Founders Capital
- Table Management
- Album VC
The funding highlights the transition in how Americans are giving importance to cryptocurrency in terms of taxes and regulations of government.
Thousands of audit notices were sent to crypto traders by the IRS, followed by the release of new cryptocurrency tax guidelines.
In 2019, the IRS added the latest tax return question that requires all U.S. taxpayers to confirm that they have purchased, sold, or traded cryptocurrencies at any point in the fiscal year.
TaxBit’s mission is to encourage the widespread adoption of cryptocurrency by automating the tax enforcement regulatory barrier, and was founded by:
- Tax attorneys
- Software developers
Austin Woodward, CEO, and Founder of TaxBit said:
“In such a highly regulated space with so many complexities, TaxBit is needed to remove the burden of proper cryptocurrency tax reporting from the shoulders of crypto users, exchanges, and merchants.”
Users can easily use the do-it-yourself software of TaxBit to generate all of their necessary crypto tax forms in minutes. For this reason, the consumer product of the business is often referred to as the “TurboTax Crypto”.
Sean Banks, Partner at TTV Capital said:
“We are very impressed with the TaxBit team and the platform they are building. This technology is fundamental to the adoption of cryptocurrency, as it enables the industry to progress while being compliant with tax regulations worldwide.”