Crypto Exchange and Custodian Gemini Chooses Sovos as its Tax Reporting Solution Provider

November 4, 2019
David Dobbins

Gemini, one of the world’s most trusted cryptocurrency exchanges and custodians, has selected Sovos, the largest private filer of 10-series tax forms, to automate Gemini’s 1099 forms and filings. Sovos will enable Gemini to eliminate potential errors and get automatic regulatory updates on the everchanging cryptocurrency compliance landscape.  

The growing confusion related to crypto tax reporting obligations continues to plague crypto or digital currency exchanges. And that confusion can lead to negative tax consequences for taxpayers, too. The IRS only recently issued clarification on how individual taxpayers should handle paying taxes on crypto assets, but it has not yet revealed how exchanges such as Gemini should manage tax information reporting on Form 1099. 

IRS shows signs of cracking down on crypto 

Even before the IRS issued guidance to individuals, the agency made clear that it would levy penalties to taxpayers who failed to report income and pay taxes on crypto transactions. Crypto exchanges could face the same issue. Although IRS reporting regulations for exchanges are still unclear, the agency could take action to punish exchanges as soon as it makes clarification available and possibly even earlier.

Gemini protects customers, stays ahead of competitors 

In choosing Sovos as a partner for tax reporting, Gemini has made a decision to mitigate potential IRS penalty risk and prepare for any forthcoming guidance from the IRS on crypto tax reporting. By partnering with Sovos, Gemini ensures that its customers will receive the tax information they need to report crypto transactions to the IRS at a time when the agency is cracking down on individual taxpayers. This commitment to compliance demonstrates one way Gemini has set itself apart in the cryptocurrency industry.

In addition to industry-leading customer service, businesses like Gemini that choose experienced partners for tax reporting are safeguarding themselves from the costly and time-consuming process of trying to manually comply with new and unclear crypto reporting regulations as they happen.

Discover how Sovos can safeguard your business and help you avoid the risks of uncertain cryptocurrency regulations.

Take Action

Find out how Sovos ensures compliance in multiple aspects of 1099 reporting, including crypto tax reporting. 

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

David Dobbins

Content Marketing Manager
Share This Post

LATAM VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

ShipCompliant United States
June 4, 2020
Granholm: 15 Years of Shipping Wine…and More

How much can change in fifteen years?  It was May 2005 when the U.S. Supreme Court issued a ruling in Granholm v. Heald, one of the most consequential beverage alcohol-related cases the Court has heard. The case challenged laws in Michigan and New York that permitted in-state wineries to make direct-to-consumer (DtC) shipments to their […]

EMEA Tax Compliance VAT & Fiscal Reporting
June 4, 2020
European Court Rules Against UK on VAT Treatment of Futures Trading

In the midst of ongoing negotiations following the UK’s exit from the European Union (EU), the Court of Justice of the European Union (CJEU) has ruled that the UK has impermissibly expanded the scope of its 0% VAT rate on futures trading.  And, that this has been occurring over a period spanning more than forty […]

ShipCompliant United States
June 3, 2020
4 Steps to Get Started Shipping DtC

Direct-to-consumer (DtC) shipping of beverage alcohol products is a $3 billion dollar market that continues to grow annually. DtC shipping can be a great way to grow your business by reaching new audiences, expanding your customer base, and increasing your sales. But, before you can take advantage of this growing market, there are some steps […]

E-Invoicing Compliance LATAM Tax Compliance VAT & Fiscal Reporting
June 3, 2020
Latin America: An Update on E-Invoice Requirements

In the field of global e-invoicing and tax control, most eyes have been focused on trailblazing initiatives in Asia, as countries such as India, Vietnam and Thailand look set to introduce new reforms in this area. However, even in the home of mandatory digital tax controls – Latin America – where mandatory clearance of B2B […]

EMEA IPT Italy Tax Compliance
June 3, 2020
Italian Parafiscal Complexities

Premium tax and parafiscal compliance for insurers authorised to operate under the Italian regime can be challenging. For the experienced, it may seem that each year brings a different obligation to be met with new requirements often being introduced. There are almost always links between an upcoming year’s reporting requirements and declarations made in previous […]