Best Crypto Tax Software for Epicor Kinetic

Sovos provides essential support for digital asset brokers, exchanges, and financial institutions in complying with cryptocurrency tax obligations. Brokers are required to disclose sales and exchanges of digital assets to the IRS using Form 1099-DA, starting with reporting gross proceeds, with cost basis disclosures being incorporated in subsequent years. The process of reporting digital assets introduces complexities such as increased transaction volumes, the need for new forms, and rigorous taxpayer identification regulations. Sovos streamlines this process by offering a unified workflow that enables the collection and validation of customer Taxpayer Identification Numbers (TINs), the preparation of 1099-DA and associated information returns, electronic filing with the IRS through the IRIS system, and distribution of recipient copies. With integrated Name/TIN matching capabilities, Sovos helps identify discrepancies prior to filing, minimizing the risk of B-Notices and backup withholding complications. For businesses operating internationally, Sovos also facilitates compliance with digital asset reporting frameworks like DAC8 and CARF. Get ready to tackle digital asset reporting efficiently with Sovos.