Square Plans Pro Bitcoin Cash App. Moves to Integrate TaxBit Even Amid Tax-filing Season
It was another interesting week in the cryptocurrency industry when news had it that Cash App, a mobile payment and financial services platform run by Square, has announced that its users will soon be able to conveniently keep track of their Bitcoin transactions for tax filing purposes thanks to an integration with TaxBit, a provider of tax reporting software.
It was announced that the IRS in the United States has set January 23 as the beginning of the 2022 tax filing season, with most taxpayers having until April 18 to file and pay taxes they owe. At the same time, the integration is taking place.
According to Lindsey Argalas, chief operating officer of TaxBit, “for everyone who has integrated digital assets into their portfolio,” TaxBit’s platform simplifies tax filing. While explaining the workings of the proposed innovation, they said users of the Cash App may now easily and accurately record their cryptocurrency transactions to the IRS with the help of this new integration.
The TaxBit integration comes after the IRS reminded taxpayers of their responsibility to report cryptocurrency income. These obligations include capital gains from trading, mining, and staking activities. It has been advised that people must accurately report their transactions in order to avoid potential legal problems, and penalties as the use of cryptocurrencies like Bitcoin continues to gain popularity.
Further Revelation Into the Workings
The Cash App platform has a reputation for being user-friendly when it comes to buying and selling Bitcoin, making it simple for anyone to get started with cryptocurrency. Thanks to this new integration, users of the Cash App may now keep track of their Bitcoin transactions without stressing about the difficulties of tax reporting.
Investigations show that what led to this initiative was the decision by Cash App to integrate with TaxBit is part of a wider trend in the cryptocurrency sector, where more businesses realize the importance of simple tax reporting solutions. Individuals and companies are becoming more crucial to accurately report their cryptocurrency transactions as the IRS cracks down on tax evaders using cryptocurrencies.
It was also gathered that in a bid for additional integration with TaxBit, Cash App has recently changed other aspects of its platform to make it more conducive to cryptocurrencies. Also, from the workings, users will be able to rapidly send Bitcoin to other Cash App users thanks to a new function that the firm unveiled sometime in December 2021. The purpose of the functionality is to encourage users to use Bitcoin for actual transactions rather than only as an investment.
The Works and the Many Advantages
It is also important to note that the parent company of Cash App, Square, has a history of involvement with cryptocurrencies. Following a $170 million purchase of bitcoin in February of that year, Square stated in October 2021 that it had bought $50 million worth of the cryptocurrency. Jack Dorsey, the CEO of Square, has been a prominent supporter of Bitcoin and has said that he thinks it has the potential to become the “one currency” of the world.
Analysts who commented on the new development said that integrating Cash App with TaxBit is a move in the right direction for the bitcoin sector. They also advised that it is important that they have access to tools that make it simple for them to disclose their transactions for tax purposes as more and more people continues to invest in Bitcoin and other digital assets.
The implication is that users may feel secure knowing they are appropriately reporting their cryptocurrency transactions to the IRS thanks to TaxBit’s software being incorporated into Cash App.
Recall that sometime in 2022, TaxBit Network was launched by TaxBit to provide crypto traders with a tax-free form. The firm also launched its consortium with many other United States companies, some being Binance (US), PayPal, Paxos, Gemini, and Coinbase.
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