CoinTracker Adds 6 Industry Partnerships for Its Crypto Tax Reporting Tool

CoinTracker has partnered with a number of prominent blockchain industry firms, opening its cryptocurrency portfolio tracking and tax reporting product to more users.

The Y Combinator-backed firm built by former Google employees was added by crypto derivatives platform ErisX as service partner on Wednesday. That came alongside five other business relationships added in recent weeks, including bitcoin security firm Casa, crypto finance protocol Compound, trading platform Crypto.com, decentralized Ethereum exchange IDEX, and bitcoin rewards platform Lolli.

With reporting taxes on cryptocurrency transactions notoriously complex even for experts, the firm aims to simplify that process within its tax calculator tool that automatically outputs reports for users.

CoinTracker also has an existing integration with TurboTax, the tax-filing software offered by Intuit Consumer Tax Group, both of which partnered with prominent crypto exchange Coinbase in 2019.

Talking of the new partnerships, Chandan Lodha, co-founder at CoinTracker, told CoinDesk "the breadth of integrations means we can serve more crypto users and more types of crypto users from hobbyist dipping their toes into crypto via bitcoin rewards like Lolli all the way to advanced traders."

Also read: Crypto Holders Still Face Issues Reporting Tax Liabilities, Survey of CPAs Finds

With over $600 million in capital losses claimed on behalf of their users, the new partnerships were providing solutions for many different types of clients, he added.

The company also says it recently passed what it considers to be the major milestone of more than 100,000 active users, with more than 175,000 connected wallets and exchanges, as well as $20 billion in transaction volume tracked so far.

Ultimately, CoinTracker says, by helping people report their taxes with simple tools, those in the mainstream who view crypto as a tool used for illicit activity will start to understand it's a legitimate means of value transfer among law-abiding citizens.

"As more users and regulators see that the vast majority of cryptocurrency use is by everyday people for completely legal transactions and people are crypto tax-compliant, this only helps increase faith and legitimacy of the cryptocurrency industry as a whole," Lodha said.

"Our hope is to show people that cryptocurrency is actually regulated and you can be tax compliant pretty easily," Lodha added.

See also: Australian Tax Office to Warn Investors Over Crypto Misreporting

On March 21, U.S. Secretary of the Treasury Steve Mnuchin announced the usual tax return deadline of April 15 has been extended to July 15, allowing taxpayers and businesses additional time to file and make payments without interest or penalties during the economic turmoil prompted by the coronavirus outbreak.