ProfitStance’s New Report Addresses Cryptocurrency Investors’ Massive Problems in Tax Accounting and Filing

Report Clearly Quantifies the Problem, Provides Background on Current
Legal Status, and Gives Insight into Potential Solutions

SALT LAKE CITY–(BUSINESS WIRE)–#CryptoAccounting–ProfitStance, the first holistic and fully developed tax reporting and
accounting solution, today announced the release of its report “The
Crypto Landscape: Tax Accounting Issues and Solutions.”
Developed by
crypto investors for their peers, the software-as-a-service (SaaS)
solution continually tracks all crypto transaction activity and is
currently available for individual investors for 2018 and previous tax
years. In addition, an enterprise solution is in advanced stages of
development and addresses the needs of CPA firms, wealth managers,
financial organizations, miners, and others.

One of cryptocurrency’s problematic and unintended consequences turns
out to be the difficulty of accurately tracking the cost basis of crypto
movements (buys/sales/sends/receives) from a tax and accounting
perspective so that investors pay no more taxes than they actually are
required to pay. Key contributing factors include the following:

  • Investors are often trading multiple cryptocurrencies using multiple
    wallets and multiple exchanges so the tax liability “water” gets very
    muddy very quickly;
  • No meta data is captured on crypto movements
    (buys/sales/sends/receives) which often penalizes investors with a
    higher tax liability than they actually have;
  • Crypto exchanges are not providing clarity and accuracy to investors;
    the information they do provide is highly siloed, lacks uniformity,
    and is often inaccurate;
  • Since there is very little enforcement by regulators (SEC, FinCen,
    etc.) crypto investors are left largely to fend for themselves;
  • The IRS has been slow to offer guidance and/or clear regulation which
    has compounded uncertainty in the market and removed much of the fear
    / incentive investors normally have to report taxes the best they can;
  • Because accurate cost basis data is so difficult, expensive, and time
    consuming for crypto investors to obtain, approximately 98% of them
    did not report taxes in 2017.

“Crypto investors are struggling to find ways to keep accurate records
of their transactions, and it only gets more complicated as investors
work with multiple wallets across several exchanges,” said Corey Blaser,
president, ProfitStance. “With our solution, crypto investors can see
the impact of every trade on a real-time basis, allowing them to have
clear insight into their pending tax liability.”

Each user is protected by the highest level of security and anonymity –
if a government entity subpoenas a user’s transaction information,
ProfitStance’s system architecture and data encryption protocols are
purposefully designed to make it impossible to comply with such a
subpoena. However, ProfitStance’s embedded hashing algorithm makes it
virtually impossible for a user to falsify the ProfitStance reports they
submit to the IRS. This elegant solution satisfies both the market’s
need for security and anonymity and at the same time it gives the IRS a
way of validating the information it receives. And, every tax document
produced through a ProfitStance subscription is backed by a guarantee
that it will be accurate and compliant – or the company will pay up to
$1 million in IRS fines and interest.

For more information, visit www.profitstance.com.

About ProfitStance:

ProfitStance is the premier accounting and tax platform for
cryptocurrency investors and provides a Software-as-a-Service (SaaS)
platform that serves both individual and corporate entities. Unlike
other offerings, investors and their financial advisors can rely on
auditable and defensible records backed by a $1 million accuracy
guarantee. With several subscription plans available to investors,
ProfitStance offers all U.S. crypto investors an accurate, correlated
and comprehensive view of their portfolio regardless of where it is held
or what virtual assets are included. For more information, visit www.profitstance.com.

Contacts

SnappConner PR
Shannon Michael, 801-205-6714
shannon@snappconner.com

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