Coinbase taps IHS Markit for tax reporting tools

“We want to enable the public to submit applications efficiently and easily during the tax season and to feel safe.”

Coinbase has selected IHS Markit to provide tax reporting information and infrastructure for the leading cryptocurrency exchange in the United States.

IHS Markit will create and deploy Forms 1099-MISC for Coinbase customers, and the partnership is expected to expand to include additional reporting in the future.

In addition, Coinbase will support its due diligence requirements through the collection, validation and TIN comparison of the account holder forms W-8 and W-9.

Lawrence Zlatkin, Global Vice President of Tax, Coinbase, commented, “Our partnership with IHS Markit aims to provide Coinbase customers with clear, reputable tax return tools. We want the public to be able to file applications efficiently and easily during tax season and feel safe while doing so. Our new Coinbase Taxes platform will provide simple and easy to understand resources and we would like to thank IHS Markit for their partnership in making it happen. “

William Sheridan, Managing Director and Global Tax Solutions Commercial Lead, IHS Markit, said, “As the latest Biden Administration Infrastructure Bill and IRS guidance continue to suggest that the level of information reporting for taxable cryptocurrency transactions will only increase, companies are trying to to maximize efficiency and reporting accuracy. We are excited to partner with Coinbase, one of the best in their class among cryptocurrency exchanges, to support them by providing industry leading solutions for their reporting and due diligence. “

Coinbase was also on the news recently for the announcement that the exchange would begin direct deposits in the United States. This means that its users could convert part of their entire salary into cryptocurrencies and choose to be paid in crypto or USD as well.

The amount deposited on the Coinbase account can then be used for trading or investing or can be used to generate interest or also for payments.

Coinbase enables free conversion of fiat to crypto and vice versa and by keeping the fees as low as possible, Coinbase has made every possible effort to drive the full adoption of crypto.

Meanwhile, with a pitch to government officials, the venue is also influencing the country’s future regulatory framework.

This comes against the background that the SEC threatens to sue the exchange if it continues its plans to launch its lend product.

This threat had forced the exchange to step back from these plans, thinking it would be better not to stir the hornets’ nest at this point. But the idea doesn’t seem to be completely given up yet.