Proving that there is no substitute for good timing, TaxBit – a provider of automated tax and accounting services for virtual currencies – opened up its new Washington office earlier this month amid growing policy and legislative action that may end up wrapping cryptocurrencies more tightly into “traditional” economic models.
Founded in 2018 to help governments, businesses, and consumers report their cryptocurrency tax reporting and accounting, TaxBit’s new Washington office is led by Nathan Jones, senior vice president and general manager, worldwide public sector sales and government affairs. He landed at TaxBit last year after a 19-year run at Red Hat where he was Vice President, Federal. Jones is also a past president of AFCEA D.C.
He’s joined by Miles Fuller, TaxBit’s head of government solutions who joined the company after 15 years at the Internal Revenue Service, where he was senior counsel in the agency’s Office of Chief Counsel and led a team specializing in cryptocurrency issues.
The company has also brought on Christi Muoneke as corporate general counsel. She brings experience from positions at tech leaders Meta, DocuSign, and Avalara.
TaxBit already has a foothold in the Federal market through its work for the IRS to provide data analysis and tax calculation support for taxpayers with cryptocurrency. Recent developments on the policy and legislative front are set to provide more opportunities. Those include:
- Requirements in the $1.2 trillion Infrastructure Investment and Jobs Act approved last November to increase tax reporting requirements for cryptocurrency investments beginning in 2023;
- Increased interest in the Senate and at the IRS for more funding and tax code changes to prevent and prosecute criminal uses of cryptocurrency; and
- New draft legislation in the House to define “stablecoin” cryptocurrency whose value can be tied to that of U.S. currency, among other mediums of exchange.
Austin Woodward, TaxBit’s CEO, called the tax reporting requirements in the infrastructure bill “a milestone moment for the cryptocurrency industry.”
“It indicates regulators are embracing the asset class, but doing so in a way that ensures a straightforward approach to conform with existing regulations,” he said. “We believe this is an important step for the enablement of widespread cryptocurrency adoption.”