Accounting advisor CPA.com and cryptocurrency accounting automation startup Lukka partnered to jointly launch a crypto asset tax preparation tool.
CPA.com announced the partnership with Lukka in a press release published on Dec. 9. Per the release, the “LukkaTax for Professionals” crypto asset preparation tool for accountants aims to address issues currently faced by companies in the crypto industry.
Specifically, CPA announced plans to start providing services for valuing digital assets and assurance around blockchain technology.
A pressing need
CPA.com states that it decided to engage with Lukke because of the growing portion of the American population that owns and trades crypto, and thus will need to claim taxes on their holdings. The firm’s president and CEO Erik Asgeirsson noted that the sharp increase:
“The need for firms to understand the crypto asset category was greatly accelerated with the IRS issuing thousands of compliance letters recently. The combination of an institutional-grade solution from Lukka with our firm enablement capabilities will help firms address these complex client needs.”
According to the announcement, the tool’s browser dashboard allows tax professionals to make updates across multiple clients and upload files to cut data manipulation and mapping times. Lukka CEO noted the importance of accurate crypto tax assessment for certified public accountants (CPAs):
“We know that every CPA will need to pose the virtual currency question to their clients […] With tens of millions of crypto asset holders in the United States, thousands of these CPAs will then have to deliver accurate crypto tax calculations. It’s challenging and you absolutely have to be correct.”
CPA.com is a subsidiary of the American Institute of Certified Public Accountants, a member association for the accounting profession.
The increasing need for correct cryptocurrency tax management has created a new market for specialized accounting services. CPA.com is not the first company trying to capitalize on this new need.
As CryptoNewspeople reported at the end of November, Missouri-based software maker CryptoTrader.Tax has launched a new product facilitating cryptocurrency tax reporting.