CPA.com Partners with Lukka to Offer Crypto Asset Solutions

Nothing motivates a CPA like the need for compliance and such a need is now imminent for clients who own cryptocurrencies. As such, CPA.com has formed a strategic alliance with Lukka, a New York-based crypto asset software and data solutions provider, to deliver crypto asset solutions to firms.

Dec 11th 2019
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So here's some news coming out of the Digital CPA conference in Seattle this week, beginning in mid-January CPA.com and Lukka will roll out ‘LukkaTax for Professionals’ – a virtual currency tax preparation tool built specifically for accountants. 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.

The partnership was nearly a year in the making and the urgency for a compliance tool around crypto assets became more imperative after the IRS issued over 10,000 letters to cryptocurrency owners that they need to comply with Notice 2014-21. This notice states that the IRS deems crypto-transactions as property instead of a currency. 

“This idea was something we already had and we were able to evaluate and ultimately partner with Lukka to deliver what we believe is the right solution for accountants,” said CPA.com president and CEO Erik Asgeirsson. “When CPA.com thinks about partnerships we look at a category then the solution provider and we think they [Lukka] are a leading provider for firms. We were very intentional about this, and all of the categories we are in. Firms need support, they need use cases and training and a solution and this is what this is about.”

Asgeirsson also noted that this is a real blockchain use case to determine how big the crypto asset category gets and a way for firms to better understand blockchain services.

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.

The LukkaTax for Professionals platform is designed to enable firms of all sizes to 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 make updates across multiple clients and, with file upload options, practitioners can reduce time-intensive data manipulation and mapping.

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.

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