Q&A with Cointelli CEO Mark Kang
A recent survey from CreditWise found that finances were a top stressor for 73% percent of people, with money beating out politics, work and family when it comes to factors that cause stress in people’s lives.
And this particular stressor is being added to this year as the IRS expands its enforcement umbrella and cracks down in a big way on tax reporting for cryptocurrency transactions.
IRS crackdown on crypto makes filing your taxes more complex
The infrastructure bill that was signed into law last November targets crypto traders by requiring cryptocurrency brokers to record transactions via tax form 1099-B. This will allow Congress and the IRS to capture the big tax dollars needed to pay for the massive $1.2 trillion bill.
The new crypto tax reporting requirements are expected to collect an eye-popping $28 billion in new crypto taxes over the next decade. Make no mistake, the IRS, with the help of Congress, is coming for its piece.
Cointelli CEO says not to worry
When a fellow crypto investor expressed frustration at how difficult they found it to calculate their capital gains for tax season, Mark Kang decided to do something about it.
As a certified public accountant (CPA) with nearly a decade of tax preparation experience, a Stanford-trained physicist, and 17-year veteran of the engineering field, Mark had not only the desire, but the expertise to find a workable solution.
He proceeded to assemble a top-flight team of programmers, crypto experts, and tax professionals to develop his cloud-based crypto tax preparation solution — Cointelli.
Mark provided the following insights into his groundbreaking crypto tax service:
Q: Why was Cointelli created?
A: Most tax software is created by engineers with advice from tax experts. However, there is a gulf between those two fields that makes it extremely difficult for engineers to fully understand both the applicable tax laws and the guidance provided by their tax consultants. The result is often software that doesn’t completely deliver either what tax professionals, or everyday users, need to prepare tax returns.
My background blends experience in both engineering and tax preparation, and makes me uniquely suited to communicate and collaborate with both engineers and tax professionals. This has allowed myself and my team to create one of the most accurate tax preparation solutions available.
Q: What makes Cointelli different from existing crypto tax solutions?
A: Not only is Cointelli one of the most accurate services, but the product also has a simple, flat-fee pricing model with no additional hidden costs. What’s more, you can run the program for free to see just how much you’ll be paying in crypto taxes, and you won’t pay a thing until you decide to download the completed Form 8949. Cointelli also has a seamless, easy-to-use interface and 24/7 customer service — other options don’t offer that.
Q: How does Cointelli stay up-to-date on ever-changing tax laws?
A: In addition to Cointelli, I also run my own tax preparation firm. Over the years, I have assembled a large network of tax attorneys and CPAs who are constantly monitoring for amendments and updates to tax laws. We need to stay on top of these developments for my tax preparation business, and we seamlessly transition these learnings to Cointelli’s programming. My businesses complement and enhance each other in that regard.
Q: How does it work if a user prefers to have their taxes completed by a professional tax preparer?
A: That’s where our service truly shines. In this instance, taxpayers benefit most from the completed, crypto-specific IRS Form 8949 that Cointelli generates. The system automatically captures users’ crypto transactions from exchanges and calculates their capital gains and losses. That information is then presented on both Form 8949 and schedule D, which can be provided to users’ tax preparers for straightforward completion of their filing. On top of this, Cointelli makes it easier for tax professionals to import their clients’ data into their own software.
Q: How would a tax professional who doesn’t specialize in crypto benefit from this service?
A: Cointelli makes it easy for any tax professional or tax consultant to offer crypto-tax preparation, calculations, and support to their individual and small-business clients. We have a hassle-free, one-click service that is easy for tax professionals to understand. No cryptocurrency experience is required, because our software does the heavy lifting. Plus, we offer 24/7 support services for additional peace of mind.
Q: How far back in time can Cointelli track if someone wants to file amended tax returns for past years?
A: Cointelli can track as far back as a user uploads the corresponding data. However, taxpayers generally have a statute of limitations of three years from the original return filing date (or two years from the tax payment date, if later) to request a refund.
Q: Where is Cointelli currently being offered?
A: Currently, the Cointelli service is offered exclusively to U.S. taxpayers. However, we have plans to expand across broader North America, Europe, Australia, and Asia.
The team at Cointelli understands that filing your taxes can be stressful. That’s why they strive to make preparing to pay taxes on your crypto transactions as easy, affordable, and stress-free as possible.