A Blueprint to Fulfil the Complicated Responsibility of Crypto Taxation

The human horizons are more expansive than one could possibly imagine, and yet they still don’t have anything on the offer more significant than that ability to improve on a consistent basis. This progressive approach, on our part, has already got the world to hit upon some huge milestones, with technology appearing as a major member of the stated group. The reason why technology enjoys such an esteemed stature among people is, by and large, predicated upon its skill-set, which ushered us towards a reality that nobody could have ever imagined otherwise. Nevertheless, if we look up close for a second, it will become clear how the whole runner was also very much inspired from the way we applied those skills across a real world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, and consequentially, kickstarted a full-blown tech revolution. Of course, this revolution then went on to scale up the human experience through some outright unique avenues, but even after achieving such a monumental feat, technology will somehow continue to produce the right goods. The same has grown increasingly evident in recent times, and assuming one new fintech-themed development shakes out just like we envision, it will only make trend bigger and better moving forward.

ZenLedger, the industry leader in blockchain data and tax solutions, has officially signed off on a strategic partnership with april, an industry trailblazer developing AI-powered financial technology focused on modernizing taxes, to launch crypto industry’s first ever end-to-end tax filing experience. According to certain reports, the stated partnership will, in practice, bring tax aggregation, optimization and filing into a single platform to radically simplify the process of managing and filing taxes for cryptocurrency & digital asset traders. To understand the significance of such a development, we must try and understand how taxation in cryptocurrency space has been a major point of contention for all stakeholders, as individuals and businesses are often left to juggle multiple tools and platforms to meet their tax compliance needs. This is largely because of the fragmented nature that we have long come to associate with crypto, DeFi, and NFT platforms. You see, owing to the stated reality, it is right now a real struggle to perform tax optimization processes like tax loss harvesting, or even simple cost basis calculations, without having a single view into all the transactions across the different exchanges and wallets. ZenLedger has already leveraged its comprehensive transaction tracking and tax reporting capabilities in the past to eliminate manual calculations, streamline those traditional laborious processes, and basically simplify the given picture. However, aided by April’s presence, the company is now hoping to consolidate the entire tax experience, and therefore, remove the very need to handle tax forms for those users who traditionally use tax prep software. Talk about the development on a slightly deeper level, we already covered how april’s crypto tax e-filing solution will help deliver at our disposal a fully integrated product which doesn’t mandate using multiple tax forms, but what we still haven’t discussed the ease with which you can move around the relevant data here. This refers to the new solution’s one-click data import facility. Here, the core idea would be to let users effortlessly transfer Crypto Tax Reports from ZenLedger to their return. Notably enough, one will be able to achieve that objective without ever handling an 8949 or .csv. Another detail worth a mention talks to the solution’s AI-powered and user-friendly nature, which packs together for you features like Optical Character Recognition (OCR) form capture, simplifying the data entry process for common forms like W-2 and previous years’ form 1040.

“Tax Returns are already a stressful experience for customers and the need to try and coordinate those calculations across multiple tools is unnecessarily burdensome for the average Taxpayer,” said Pat Larsen, CEO and Co-Founder of ZenLedger. “The path to an accurate return should be clear and simple, which is what this solution is providing. We’re eliminating the confusion of customers mediating the output from different tools to their e-filers.”

But what makes april an ideal candidate for this sort of an initiative? Well, the answer to that resides in the company’s history in helping users file, estimate, and optimize their taxes through an integration of AI-powered tax experiences anywhere they make financial decisions. april’s excellence in what it does can also be understood once you consider that everyone from banks and creditors to payroll providers and other fintechs trust the company to carry out their tax-related procedures.

As for ZenLedger, it has its case made by the ability to aggregate user transaction information from across thousands of exchanges, wallets, and tokens into one simple easily-accessible dashboard. Helping crypto investors, tax professionals, and enterprises stay compliant at all times, the company is, at present, offering the stated integration support for over 400+ exchanges, 40+ blockchains, 20+ DeFi protocols, NFTs, and various wallets.

“Tax technology and the archaic preparation process has failed to meet the needs of today’s dynamic economy,” said Ben Borodach, co-founder and CEO of april. “We’re excited to partner with ZenLedger to help taxpayers maximize their financial opportunities by delivering the first holistic tax filing experience for cryptocurrency.”