NODE40, developers of NODE40 Balance, an industry-leading blockchain accounting platform has announced a partnership with global tax software leader Sovos to offer an all-inclusive suite of Tax & Compliance Automation services for Virtual Asset Service Providers.
NODE40 and Sovos are coming together to provide Virtual Asset Service Providers compliance and protection from regulatory risk. Sovos is the largest private filer to the IRS of 10-series tax forms. NODE40 tracks the on-chain and off-chain lifecycle of digital assets for tax and audit purposes.
“When looking for a company to serve the tax information reporting needs of our enterprise customers, we looked to partner with the industry best. Nobody understands the complexity around government compliance better than Sovos,” said Perry Woodin, CEO of NODE40.
The increased interest and demand for Decentralized Finance brings into focus the need for a compliance solution tailored to fit banks, wealth management firms and other traditional finance institutions looking to offer their clients exposure to this growing asset class.
“The IRS has yet to provide clear guidance on its Form 1099 requirements for cryptocurrency reporting, but that doesn’t mean investors can wait to report on their digital assets, and they expect their service providers to deliver the tax information they need to comply,” said Wendy Walker, solution principal at Sovos. “Together, Sovos and NODE40 give virtual asset service providers a complete tax information reporting solution, including important cost basis details that will help their clients understand how to report their crypto-related income to the IRS and overcome the challenges of digital asset tax reporting compliance.”