Cryptocurrency accounting firm creates library of crypto-related legal and tax issues
An absence of clear guidance on how crypto is governed by the IRS leads to a new information database
An accounting firm is presenting a new product to the cryptocurrency sector by way of an interactive collection of academic papers addressing legal, accounting and tax questions related to crypto assets. The launch of this Lukka Library took place yesterday, and the firm’s co-CEO, Robert Materazzi, and the creator of the library and head of tax and regulatory affairs, Roger Brown, have spoken with Cointelegraph regarding the endeavor. The idea was launch back in 2015 under the brand Libra after the founder “Googled how to pay his capital gains tax and found that there wasn’t any solution that was out there,” said Materazzi. That, of course, was prior to the introduction of Facebook’s Libra stablecoin.
“People weren’t interested in paying their taxes in 2014,” said Materazzi after referring to the original launch back in 2014 that did not have the expected impact. Materazzi claims this product to be the first cryptocurrency tax calculator. In 2017, Bitcoin (BTC) was pushed to a more mainstream scenario, which caused a proliferation of crypto hedge funds, so the firm decided to turn its services to be more focused in institutions.
According to Brown, they both drafted a list with 170 different issues related to cryptocurrency taxes, and he stated that “there was either no IRS guidance, or the IRS guidance on the topic was overly broad and missed the nuances in their facts.”
In this Lukka Library, more than 75 different topics will be addressed, including useful strategies for crypto-traders and suggestions on how to value digital assets with high volatility. The library offers several articles written by more than 20 authors from places like the University of Pennsylvania. The library also has a section for users to send specific requests about topics they want to know more about. The cost of the subscription is set at $99.95 per year.