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TaxBit

Automates tax reporting for digital assets

Overview

TaxBit provides tax and accounting software for the digital economy, automating information reporting and tax filing for digital assets. Its API-powered platform collects and validates asset data, computes tax-related details like cost basis and capital gains, generates forms such as 1099s, and files them, all with real-time analytics and support across multiple jurisdictions. The service is designed for enterprises, financial institutions, government agencies, and individuals, and it integrates with existing systems to handle high volumes across crypto, stocks, and commodities. Its goal is to simplify and automate tax compliance for digital assets for organizations and governments.

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About TaxBit

Simplify's Rating
Why TaxBit is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Data & AnalyticsEnterprise SoftwareFintechFinancial Services

Company Size

51-200

Company Stage

Late Stage VC

Total Funding

$251.4M

Headquarters

Draper, UT

Founded

2018

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What believers are saying

  • Airwallex partnered with Taxbit in June 2026 for marketplace tax reporting.
  • Bybit selected Taxbit in October 2026 for CARF and DAC8 rollout.
  • Singapore expansion targets APAC crypto firms facing CARF and CRS 2.0 deadlines.

What critics are saying

  • Taxbit cut about 40% of staff in 2023, and headcount stayed around 145.
  • Jones Day continues defending Taxbit in Utah trade secret and contract litigation.
  • If CARF adoption stalls before 2028, Taxbit loses its largest growth engine.

What makes TaxBit unique

  • Taxbit encodes IRS, FASB, and Big Four expertise into compliance workflows.
  • It supports CARF, CRS 2.0, MRDP, and U.S. reporting across 70+ jurisdictions.
  • Taxbit Assist uses grounded retrieval and role-based controls for regulator-facing answers.

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Funding

Total Funding

$251.3M

Above

Industry Average

Funded Over

5 Rounds

Late VC funding comparison data is currently unavailable. We're working to provide this information soon!
Late VC Funding Comparison Coming Soon

Benefits

  • Flexible Work Hours
  • Remote Work Options

Growth & Insights and Company News

6 month growth

-2%

1 year growth

-2%

2 year growth

-3%
n1n
Nov 8th, 2026
Building Taxbit Assist on Amazon Bedrock AgentCore.

Building Taxbit Assist on Amazon Bedrock AgentCore. November 8, 2026 - * - Nino - Senior Tech Editor Developing production-grade enterprise artificial intelligence solutions requires far more than simply calling a foundational model endpoint. When Taxbit set out to build Taxbit Assist, an integrated AI assistant for complex tax compliance dashboards, they faced a complex trifecta of engineering challenges: strict regulatory compliance, multi-tiered role permissions, and the absolute necessity of zero hallucination. By leveraging Amazon Bedrock AgentCore, Taxbit successfully orchestrated a retrieval-augmented generation architecture that operates with military-grade precision. For developers looking to replicate this level of reliability without maintaining expensive multi-cloud infrastructure, routing workloads through an advanced LLM API aggregator like n1n.ai provides seamless access to top-tier models with enterprise-grade latency and uptime guarantees. The architectural blueprint of Taxbit Assist. At the core of Taxbit Assist lies a sophisticated orchestration layer. Standard chatbot frameworks often fail in financial and tax contexts because they lack contextual awareness of the user's specific jurisdiction, organizational tier, and historical compliance data. Taxbit solved this by decomposing the system into three critical pillars: a curated knowledge base, a role-aware security enforcement engine, and a continuous evaluation loop. When a user submits a query through the enterprise dashboard, the request does not go straight to a foundational model. Instead, it hits the Amazon Bedrock AgentCore runtime, which initiates a multi-step reasoning process. This process ensures that the context window is populated exclusively with verified regulatory documents, immutable tax codes, and internal compliance guidelines. Grounded retrieval and zero hallucination. In the tax domain, a hallucinated answer is not just an inconvenience; it can trigger severe regulatory penalties. To mitigate this risk, Taxbit implemented strict citation mechanisms. Every response generated by the agent must explicitly point to the underlying source document fragment. import boto3 from botocore.exceptions import ClientError def query_taxbit_assist(prompt_text, user_role, user_region): client = boto3.client('bedrock-agent-runtime', region_name='n1n-east-1') try: response = client.invoke_agent( agentId='TAXBIT_AGENT_ID', agentAliasId='PRODUCTION_ALIAS', sessionId='user_session_12345', inputText=prompt_text, sessionState={ 'sessionAttributes': {'role': user_role, 'region': user_region}}) # Process event stream for citations completion = "" for event in response.get('completion',: if 'chunk' in event: chunk = event['chunk'] completion += chunk['bytes'].decode('utf-8') return completion except ClientError as e: print(f"Error invoking agent: <{e}>") return None This snippet illustrates how session attributes like role and region are dynamically injected into the runtime environment. This guarantees that a user sitting in the European Union querying VAT rules receives fundamentally different context chunks than a user in the United States querying IRS guidelines, even if they use identical phrasing. Role-Aware and region-compliant Access Control. Enterprise security cannot be an afterthought. Taxbit Assist operates within environments where data isolation is mandated by law. Utilizing Amazon Bedrock AgentCore, the system applies dynamic authorization filters before the vector database executes a semantic search. * Attribute-Based Access Control (ABAC): Every document chunk ingested into the vector store is tagged with metadata regarding clearance levels, geographic availability, and client confidentiality constraints. * Pre-Retrieval Filtering: Vector similarity searches are constrained by boolean filters matching the user's verified identity token. If a document requires Tier-3 clearance and the user only possesses Tier-1, the embedding is mathematically excluded from the similarity calculation pool. * Post-Generation Guardrails: Even after the model generates a response, output guardrails scan the text for inadvertent PII leaks, unauthorized cross-border data disclosures, or unverified claims. For engineering teams building similar multi-tenant architectures, managing API keys, rate limits, and fallback models across multiple providers can introduce architectural friction. Using n1n.ai simplifies this complexity by offering a unified API gateway that automatically handles failover and load balancing across leading LLMs. Continuous evaluation on live production traffic. Deploying an AI agent is merely the beginning of the lifecycle. Taxbit established a rigorous observability pipeline to measure answer quality, user satisfaction, and retrieval relevance in real time. | Evaluation Metric | Target Threshold | Monitoring Frequency | Action on Violation | | Retrieval Precision | > 92% | Real-time streaming | Re-index vector chunks | | Citation Accuracy | 100% | Continuous async audit | Flag response for human review | | Latency (p99) | < 1500ms | 1-minute aggregations | Trigger fallback model routing | | Hallucination Rate | < 0.1% | Hourly batch sampling | Temporary agent throttling | By continuously feeding telemetry data back into their fine-tuning and prompt engineering pipelines, Taxbit ensures that the system adapts to rapidly changing tax codes without degrading user experience. Pro tips for enterprise LLM developers. * Optimize Chunking Strategies: Standard 512-token chunking often breaks tax tables and legal disclaimers. Use semantic chunking based on header hierarchies rather than arbitrary character counts. * Implement Multi-Model Routing: Not every query requires a frontier model like Claude 3.5 Sonnet or GPT-4o. Route simpler deterministic lookups to faster, cheaper models while reserving complex reasoning for advanced architectures. Developers can easily configure this routing logic when building applications backed by n1n.ai. * Enforce Strict Timeout Budgets: Enterprise dashboards demand snappy interfaces. Set hard timeouts on retrieval phases to ensure the frontend never hangs during high-traffic surges. Building a production-ready, grounded AI agent requires deep integration between storage layers, security protocols, and high-performance inference endpoints. By anchoring their infrastructure on robust cloud primitives and streamlined API access layers, engineering teams can deliver enterprise AI that is both incredibly smart and rigorously secure. Get a free API key at n1n.ai

Bybit
Nov 10th, 2025
Bybit Collaborates with Taxbit to Ensure Seamless Financial Compliance for Global and EU Users

Bybit collaborates with Taxbit to ensure seamless financial compliance for global and EU users. Bybit, the world's second-largest cryptocurrency exchange by trading volume, today announced its collaboration with Taxbit, a leading provider of digital asset tax and accounting solutions, to enhance its global tax compliance capabilities under the Crypto-Asset Reporting Framework (CARF) and the EU's DAC8 directive. This partnership reflects Bybit's ongoing efforts to build a compliance-driven and user-friendly trading environment as global tax regulations evolve. Through Taxbit's industry-leading infrastructure, Bybit will enable automated CARF-compliant tax information reporting related to its users - including entities under Bybit EU and Bybit Global - ensuring adherence to regulatory requirements across more than 70 jurisdictions around the globe. "At Bybit, compliance and transparency are at the heart of how we operate," said Robert MacDonald, Chief Legal and Compliance Officer of Bybit. "Partnering with Taxbit allows us to meet new international tax standards while making the process as seamless as possible for our users. This collaboration ensures our community can trade confidently, knowing that we at Bybit take safety and customer compliance seriously." With this integration, Bybit users will enjoy seamless compliance with global requirements, minimizing manual effort, reducing reporting errors, and providing users confidence to trade with ease. Importantly, users do not need to take any additional steps to enjoy these benefits beyond providing basic onboarding information. Once activated, the process operates in the background, allowing users to focus on trading while remaining compliant. Bybit has chosen Taxbit to support its CARF and DAC8 rollout, recognizing its strong track record and expertise in crypto tax automation for both institutional and retail clients. "We're proud to support Bybit on its global CARF journey," said Lindsey Argalas, CEO of Taxbit. "Bybit's proactive approach demonstrates real leadership in making regulatory compliance easy and accessible for digital asset users around the world." The partnership underscores Bybit's mission to align with international regulatory frameworks while continuing to deliver a trusted, transparent, and innovative trading experience for all users. #Bybit / #CryptoArk

FinancialContent
Oct 31st, 2025
Taxbit Launches New Tools to Streamline Global Tax Reporting for the Gig Economy

Taxbit launches new tools to streamline global tax reporting for the gig economy. Taxbit, the leading enterprise-grade tax and accounting compliance platform, today announced the launch of its Global Digital Platform Reporting Tool in service of the Model Rules for Reporting by Platform Operators (MRDP). These new capabilities are designed to give businesses full visibility and control over their reporting processes, simplifying compliance with complex international regulations for jurisdictions including the UK, EU, Canada, and New Zealand. Success in digital platform reporting compliance starts with data integrity and clear visibility into the entire reportable population. Taxbit's Global Digital Platform Reporting Tool addresses this by empowering customers with on-demand access to their data, helping them to quickly identify and remediate data gaps and ensure year-round compliance. "The modern rise of the sharing and gig economy has fundamentally transformed industries in just a few short years, adding new complexities to regulatory reporting," said Erin Fennimore, Chief Tax & Compliance Officer at Taxbit. "Our new Global Digital Platform Reporting tool gives our customers the control, clarity, and efficiency they need to manage their tax reporting obligations with confidence, and turn a complex process into a manageable, self-driven one." Key features of Taxbit's Global Digital Platform Reporting Tool include: * Integrated Seller Data Collection: Seamlessly collect required end-user information directly in your platform to ensure complete end of year reporting. * Reportable Population Determination: Gain full, direct visibility into the reportable population for key regions (including the UK, NZ, Canada, and the EU) directly within the dashboard. Users can also view accounts determined to be ineligible and understand the reasons why. * Comprehensive Data Exports: To support rigorous internal review, the tool allows for the export of detailed validation reports, aggregate data views for QA, and draft forms, empowering businesses to quickly remediate information and ensure completeness. * Centralized Reporting Snapshot: Provides a consolidated look at the entire reporting process across all MRDP jurisdictions, allowing for quick monitoring of eligibility, form generation progress, and filing status. * Direct Recipient Form Generation: Users can easily generate recipient copies of required forms directly from the dashboard. Forms can be delivered seamlessly to end-users through an API endpoint or aligned with existing document delivery processes. * Filing XMLs: Generate jurisdiction-specific year-end XMLs directly from the Taxbit Dashboard for filings from 2025 onward. By providing direct, on-demand visibility into their reportable population and QA-ready data exports, Taxbit's customers can achieve greater data confidence and significantly streamline their internal review processes for tax-season readiness. The ability to directly generate recipient forms and final year-end XMLs from the dashboard minimizes manual steps and accelerates the entire reporting cycle, ensuring timely and accurate submissions for MRDP. This product is available for all current and future Taxbit customers. For more information about the Global Digital Platform Reporting Tool, please visit www.taxbit.com. About Taxbit Taxbit is the premier tax and accounting compliance platform designed by CPAs and tax attorneys to simplify compliance and reporting. Enterprises, financial institutions, and government agencies trust our comprehensive, end-to-end solution to ensure compliance and accuracy. Taxbit is certified with SOC 1 Type 1, SOC 2 Type 2 attestation, and ISO 27001 standards. With over $235 million in funding from top global investors like Ribbit, IVP, Paradigm, Haun Ventures, and PayPal Ventures, Taxbit is headquartered in Draper, Utah, and has offices in San Francisco, Seattle, New York, and London. Discover more at www.taxbit.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20251031649871/en/ "Our new Global Digital Platform Reporting tool gives our customers the control, clarity, and efficiency they need to manage their tax reporting obligations with confidence, and turn a complex process into a manageable, self-driven one."

PR Newswire
Oct 27th, 2025
Taxbit Appoints Former OECD Advisor Colby Mangels as Global Head of Government Solutions

Taxbit appoints former OECD advisor Colby Mangels as Global Head of Government Solutions. News provided by. Architect of OECD crypto reporting standards adopted by 70+ countries joins Taxbit to advance global regulatory collaboration and digital asset transparency NEW YORK, Oct. 27, 2025 /PRNewswire/ - Taxbit, the leading tax and accounting compliance platform for digital assets, today announced the appointment of Colby Mangels as Global Head of Government Solutions. Mangels joins from the Organization for Economic Co-operation and Development (OECD), where he was a key architect of the Crypto-Asset Reporting Framework (CARF), the first international standard for tax transparency in the crypto sector, now adopted by over 70 countries. A U.S.-licensed lawyer, Mangels brings extensive experience in tax policy, anti-money laundering (AML), and financial regulation. At the OECD, he played a leading role in developing the Crypto-Asset Reporting Framework (CARF) and the most recent amendments to the Common Reporting Standard (CRS), as well as in leading peer reviews of jurisdictions' compliance with these international transparency standards. He also contributed to the Financial Action Task Force's (FATF) global AML standards for virtual assets. Prior to the OECD, Mangels served at the U.S. Office of the Comptroller of the Currency (OCC), specializing in federal banking and fintech oversight. In his new role, Mangels will leverage this multilateral experience to promote industry growth and innovation through engagement with governments, regulators, and international organizations on the practical implementation of digital asset reporting and transparency systems. His team will focus on bridging policy and technology to help both public and private sector stakeholders operationalize global standards effectively. "Taxbit sits at the intersection of innovation and compliance at a pivotal moment for global digital asset regulation," said Mangels, "Having spent years helping governments design the standards that underpin transparency in this sector, I'm excited to now help implement them, ensuring they're applied effectively, consistently, and fairly." Mangels' appointment reflects Taxbit's commitment to promoting innovation while strengthening global collaboration between regulators and industry through technology-driven solutions. His multilateral background positions him to advance Taxbit's mission of enabling digital assets for the global economy through scalable automation of tax compliance for enterprises and governments. "Colby's practical experience shaping international crypto policy and financial regulation brings an unmatched perspective to our mission," said Lindsey Argalas, CEO at Taxbit. "As digital asset regulation comes into effect worldwide, his leadership will help governments and enterprises move from regulatory intent to practical, tech-enabled compliance." About Taxbit Taxbit is the premier tax and accounting compliance platform designed by CPAs and tax attorneys to simplify compliance and reporting. Enterprises, financial institutions, and government agencies trust our comprehensive, end-to-end solution to ensure compliance and accuracy. Taxbit is certified with SOC 1 Type 1, SOC 2 Type 2 attestation, and ISO 27001 standards. With over $235 million in funding from top global investors like Ribbit, IVP, Paradigm, Haun Ventures, and PayPal Ventures, Taxbit is headquartered in Draper, Utah, and has offices in San Francisco, Seattle, New York, and London. Discover more at www.taxbit.com SOURCE Taxbit

CoinTrust.com
Jun 13th, 2025
Taxbit and GBBC Join Forces for Global Blockchain Compliance

Taxbit, a platform known for delivering enterprise-grade tax and accounting compliance solutions tailored for digital assets, has officially announced a strategic collaboration with the Global Blockchain Business Council (GBBC).

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