NODE40, developers of NODE40 Balance, a blockchain accounting platform, today announced a partnership with tax software company Sovos, to offer an all-inclusive suite of tax and compliance automation services for crypto-asset service providers.
Sovos is the largest private filer to the IRS of 10-series tax forms. NODE40 tracks the on-chain and off-chain lifecycle of digital assets for tax and audit purposes.
"When looking for a company to serve the tax information reporting needs of our enterprise customers, we looked to partner with the industry best. Nobody understands the complexity around government compliance better than Sovos.”
– Perry Woodin, CEO of NODE40
The increased interest and demand for decentralized finance brings into focus the need for a compliance solution tailored to fit banks, wealth management firms, and other traditional financial institutions looking to offer their clients exposure to this growing asset class.
The IRS has yet to provide clear guidance on its Form 1099 requirements for cryptocurrency reporting, but that doesn’t mean investors can wait to report on their digital assets, and they expect their service providers to deliver the tax information they need to comply. Together, Sovos and NODE40 give virtual asset service providers a complete tax information reporting solution, including important cost basis details that will help their clients understand how to report their crypto-related income to the IRS and overcome the challenges of digital asset tax reporting compliance.”
– Wendy Walker, Solution Principal at Sovos