TaxBit

TaxBit is an enterprise tax compliance and regulatory reporting platform designed for cryptocurrency exchanges, brokers, payment providers, and institutional fintechs. Instead of focusing primarily on individual retail tax filing, the system acts as data infrastructure to collect payee documentation, match tax identification numbers, calculate cost basis, and generate filing-ready information returns across more than 70 jurisdictions.

Corporate background and leadership

Founded in 2018 in Draper and Salt Lake City, Utah, TaxBit is led by Chief Executive Officer Lindsey Argalas. The platform's internal regulatory staff includes over 30 tax and compliance specialists recruited from the IRS, the OECD, FASB, and Big Four accounting firms. The company has raised significant venture capital, securing a $130 million Series B round in August 2021 at a $1.33 billion valuation led by IVP and Insight Partners, alongside investments from Paradigm, Tiger Global, PayPal Ventures, and Winklevoss Capital.

How the compliance infrastructure works

TaxBit operates as an API-first platform called the Taxbit Intelligence Hub. Institutions feed customer transaction histories and onboarding forms like W-8 and W-9 directly into the engine. The software automates TIN and VAT validation while determining cost basis across connected assets. Output files are packaged directly into required regulatory formats, including IRS Form 1099-DA, OECD Crypto-Asset Reporting Framework (CARF) submissions, DAC8 and DAC7 filings in Europe, and CRS 2.0 reports.

Pricing and enterprise availability

The reporting software functions internationally.

Scale and operational limits

The company maintains an independent SOC 2 certification and supports reporting for enterprise clients including PayPal, which uses TaxBit to handle digital asset tax reporting for its consumer base. During tax year 2025 alone, TaxBit processed 3B transactions across more than 50 million accounts and 500+ companies.