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CPA.com Partners with Lukka to Offer Crypto Asset Solutions

Program Will Provide Education and Tools for Practitioners as Virtual Currency Usage Grows

Tax season is looming and in case you missed it, the IRS has added a new question on virtual currencies (a.k.a cryptocurrencies) at the top of the 2019 Form 1040 Schedule 1. This is a critical item because somewhere between 8 – 14% percent of the U.S. population own crypto assets, according to recent polls by Harris Insights/Gem and Finder Inc., respectively.

As a consequence, Lukka and CPA.com, an AICPA company, have announced a partnership to provide their ~45,000 CPA firm customers, ‘LukkaTax for Professionals’ — a virtual currency tax preparation platform built specifically for accounting professionals. The solution will be exclusively available as part of CPA.com’s preferred accounting firm solutions. CPA.com provided input to make the simple user interface more accessible for firms. (PRESS RELEASE Read More )

LukkaTax for Professionals uniquely supports practitioners by:

  • Efficiently collecting transactions via methods that can enable data completeness
  • Automatically standardizing crypto tickers/pairs to eliminate data inconsistencies
  • Appropriately using a FMV-based valuation methodology — not index pricing
  • Accurately accounting for mining income, spot and margin trades, transfers and fees
  • Optimizing transaction matching at a global level — not at an exchange level
  • Providing multiple accounting methodologies for managing tax liability
  • Easily storing and generating tax lot and Form 8949 outputs and reports
  • Reducing risk by utilizing the only SOC1 TYPE2 crypto reporting infrastructure

LukkaTax for Professionals evolved from Lukka’s first product – LibraTax – which was, at its release in 2014, the world’s first commercial crypto tax calculator. Further, the tool utilizes many of the capabilities in Lukka’s institutional accounting, reference data and valuation products – which are used by many of the industry’s most demanding companies – to create financial statements and net asset value (NAV) reports. Going forward, Lukka will continue to build solutions that service its institutional customers while also focusing on accounting firms and their clients.

CPA.com will begin offering LukkaTax for Professionals to accounting firms in January.


 

PRESS RELEASE

FOR IMMEDIATE RELEASE

Contacts:

Jeff May, CPA.com, 212.596.6122, [email protected]

Amanda Loveday, Lukka, 803.315.5837, [email protected]

CPA.com Partners with Lukka to Offer Crypto Asset Solutions

Program Will Provide Education and Tools for Practitioners as Virtual Currency Usage Grows 

SEATTLE (Dec. 09, 2019) – CPA.com today announced a strategic alliance with Lukka to deliver crypto asset solutions to firms. Beginning in mid-January, CPA.com and Lukka will roll out ‘LukkaTax for Professionals’ – a virtual currency tax preparation tool built specifically for accountants.

Lukka, a New York-based crypto asset software and data solutions provider, built the world’s first commercial virtual currency tax calculator. CPA.com recognized a growing need to support firms and their clients in this emerging area and, with input from AICPA teams, worked closely with Lukka to help guide the interface and functionality of the professional version, which is designed to serve multiple clients. While the crypto asset program initially will focus on the LukkaTax offering, other capabilities for valuing digital assets and providing assurance services around blockchain will eventually be included.

“Through our annual Blockchain Symposium, we have been framing the discussion around blockchain use cases,” said Erik Asgeirsson, president and CEO of CPA.com. “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.”

CPA.com and Lukka are forming this alliance because it is estimated that between eight and 14 percent of the U.S. population own crypto assets, according to recent polls by Harris Insights/Gem and Finder Inc., respectively. This year the IRS is adding a new question about virtual currencies to its Form 1040 Schedule 1, a recognition of the growing ownership of digital assets. The number is expected to grow swiftly in the years ahead, and the IRS has made it clear it is stepping up enforcement on taxpayers who haven’t made a good-faith effort to declare virtual currencies in tax calculations.

The LukkaTax for Professionals platform enables firms of all sizes to comfortably on-board and provide service to individuals with a single to thousands of digital asset transactions through a guided step-by-step experience. A browser-based dashboard allows tax professionals to seamlessly make updates across multiple clients and, with file upload options, practitioners can reduce time-intensive data manipulation and mapping.

“We know that every CPA will need to pose the virtual currency question to their clients,” said Jake Benson, founder and CEO of Lukka. “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.”

The crypto asset partnership was announced at Digital CPA, CPA.com’s signature conference for practitioners interested in accounting innovation.

CPA.com and Lukka are offering a free Jan. 13 webinar on virtual currency tax preparation and the tools practitioners need to help clients comply this tax season. Register for the CPE-eligible event at www.CPA.com/CryptoTax.

About CPA.com

CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.

Our company’s core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.

A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession. For more information, visit CPA.com.

About Lukka

Founded in 2014, Lukka is a trusted, blockchain-native technology company that delivers leading products for the crypto asset ecosystem. Lukka’s products automate and optimize accounting, audit and tax processes for investors, funds, fund administrators, OTC and proprietary trading firms, exchanges, miners, protocols and accounting firms. Lukka’s premier solutions enable the transformation of distributed and decentralized data into auditable information within a highly scalable and secure SOC 1 Type 2 infrastructure. Lukka is based in New York City.

For information about Lukka, visit www.lukka.tech.

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