The popular cryptocurrency exchange platform, Coinbase has recently added a new tax center within its own app and website to assist US customers to work out how much they may owe to the IRS as a result of their crypto transactions.

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The new tax center feature is designed to collect every taxable transaction of a customer into a singular place which will make tax day easier for them. Typically we are accustomed to seeing cryptocurrencies like Bitcoin to be similar to fiat money, but the IRS according to their FAQ on virtual currency transactions explains that they view digital assets as actual property.

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This essentially means that any crypto transactions will need to be reported as capital gains or losses, so individuals who hold onto crypto would have to keep track of a cryptocurrency’s value whenever it is purchased and sold.

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Coinbase has stated that the new tax center section of their platform will showcase “a personalized summary of [a customer’s] taxable activity on Coinbase, broken out over time by realized gains/losses and miscellaneous income.” The personalized summary that Coinbase will provide can be taken to an accountant or used with tax software such as TurboTax.

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The implementation of the new crypto tax support center comes after the IRS has increased crypto scrutiny. CNBC last year have reported that a lot of the taxes due on crypto transactions have gone unpaid. The reason for them being unpaid is due to confusion about evolving tax rules on cryptocurrency as well as crypto exchange platforms like Coinbase have not provided any support when it comes to reporting gains and losses for tax purposes.

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The crypto tax section is now available for customers on their profile icons located on the right-hand corner of the interface and will show up as “Taxes” as one of its menu items. Users on the Coinbase mobile app will find the feature in the “Profile & Settings” menu, located at the top left of the mobile app’s interface. Besides adding a crypto tax section, Coinbase is planning to offer more written guides and even videos to assist users to learn more about crypto and digital asset taxes.

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