Global tax software leader Sovos announced that cryptocurrency exchange platform Binance.US has selected Sovos for its 1099 crypto tax information reporting needs. The Sovos Tax Information Reporting solution will automate Binance.US’ 1099 forms and filings for crypto investors, reducing the potential for error and delivering automatic regulatory updates as the cryptocurrency compliance landscape continues to evolve.
Founded in 2019, Binance.US provides an exchange platform for trading various cryptocurrencies, offering an entire ecosystem of resources. The crypto trading platform selected Sovos for its experience as the largest private filer to the IRS of 10-Series tax forms, and for Sovos’ ability to quickly adapt to the compliance needs of the cryptocurrency market.
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“The reporting obligations for cryptocurrency continue to evolve at a breakneck pace, often lacking clear guidance from regulatory authorities. By implementing Sovos, Binance.US can be assured of always having the latest changes pushed to us through an automated platform,” said Joshua Sroge, interim CFO, Binance.US. “This industry will continue to evolve over the next several years, and having Sovos in our corner will ensure we provide the correct reporting guidance to our users.”
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The IRS has yet to provide guidance around the 1099 form requirements for cryptocurrency reporting. Therefore, exchanges must interpret the regulations to help their clients understand their crypto tax obligations and avoid reporting incorrect income to the IRS and any applicable state departments of revenue. With such high volumes of exchanges in a market full of regulatory unknowns, managing risk and maintaining compliance are critical to success for companies like Binance.US.
“As the rules and regulations around cryptocurrency tax reporting remain unsettled, the Sovos regulatory team continues to be at the forefront of changes, so we can help platforms like Binance.US quickly adjust to the reporting requirements and stay compliant,” said Paul Banker, general manager of Tax and Regulatory Reporting at Sovos.
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