Crypto wallet firm Ledger integrates tax solution to simplify reporting
Major cryptocurrency hardware wallet provider Ledger is moving to help crypto investors keep track of their taxes by integrating a new crypto tax-related solution.
Ledger has partnered with cryptocurrency tax software platform ZenLedger to integrate its crypto tax reporting solution into Ledger’s interface application Ledger Live, the firm announced to Cointelegraph on Thursday.
The new tax feature is immediately available on Ledger Live, available in the discover section on the Ledger Live apps catalog. The software tool allows users to automatically aggregate the history of all transactions completed via Ledger Live and track losses and earnings.
Ledger’s VP of international development, Jean-François Rochet, told Cointelegraph that ZenLedger is the first tax software integration on Ledger Live:
“Multiple services are available through partners in Ledger Live to buy, sell, swap and stake your crypto, but this is the first time a tax-related service is integrated.”
Without tax reporting software tools like ZenLedger, users who chose to self-custody cryptocurrencies like Bitcoin (BTC) would have to manually calculate their losses and earnings, Rochet noted.
The integration has a strong focus on the United States’ tax standard, targeting the particularly complex tax filing duties of the U.S. customers. The software tool will still be available to Ledger Live customers outside of the United States, Rochet said.
“Over 3.5 million people use Ledger hardware wallets worldwide, approximately 20% of digital assets are stored in Ledger devices and we continue to see an increase in Ledger products used in the United States,” he stated.
Rochet pointed out that Ledger Live has already integrated several regulated financial services platforms to accommodate Know Your Customer and Anti-Money Laundering procedures, including services like MoonPay and Wyre. “Our partnerships with MoonPay and Wyre have also allowed us to establish a better fiat to self-custody crypto on-ramp,” he added.
Related: Crypto tax rules will reduce US budget deficit by $11B over ten years — White House
Founded in 2018, ZenLedger provides non-custodial crypto tax software that uses public addresses to aggregate customer transactions and calculate tax liability. Last month, ZenLedger renewed its contract with the civil and criminal investigation units of the Internal Revenue Service (IRS).
The new integration comes a few days before the looming tax deadline as U.S. residents are required to file taxes by April 18. The crypto community has been actively working to help U.S. crypto investors report their taxes. Last month, the major enterprise crypto donation platform Engiven launched an IRS tax form and appraisal service to simplify tax reporting for cryptocurrency donors and nonprofits.