Crypto promised to route around the institutions. Taxbit quietly built the software those institutions - and the IRS - file their taxes through.
Picture the back office of a crypto exchange in the first weeks of a new year. Millions of trades, swaps, staking rewards and transfers have piled up across wallets and chains all year. By February 15, real tax forms have to land in real inboxes - and the IRS gets a copy.
For years this was a nightmare of spreadsheets, reconciliations that never quite tied out, and the quiet terror of getting it wrong in front of a regulator. Digital assets were built to escape the old financial plumbing. The plumbing, it turned out, still wanted its paperwork.
This is the room where Taxbit lives. Not on a trading screen, not in a whitepaper - in the unglamorous, deadline-driven corner of finance where data becomes a legal document. The company calls what it sells "compliance infrastructure for the digital economy." That is a polite way of saying: the boring part that absolutely cannot break.
Founded in 2018 by three Woodward brothers working alongside CPAs and tax attorneys, Taxbit made a contrarian bet. While the rest of crypto chased volatility and upside, it chased Form 1099. The wager: regulation was coming, and someone had to make it survivable.
“We have been at the forefront of digital-asset reporting since 2018 - building the compliance infrastructure for the digital economy.” — Taxbit
Taxbit ingests on-chain and off-chain transaction data, untangles cost basis, and produces filings that hold up in front of auditors and tax authorities. Five suites do the heavy lifting.
End-to-end information reporting. Ingests transaction data and generates 1099, 1099-DA, 1042-S, DAC7 and CARF filings across 140+ countries.
A Big-Four and SEC-grade digital-asset subledger that plugs into existing ERP systems for corporate accounting and reporting.
Lets agencies track digital-asset activity, analyze on- and off-chain flows, and run compliance investigations.
AI-assisted compliance baked into the platform - accelerating reconciliation, data validation, and regulatory research.
White-label tax experience exchanges embed for users: real-time tax impact, trade alerts, and tax-loss-harvesting nudges.
Most fintech origin stories start with engineers who found finance annoying. Taxbit's starts with people who found tax fascinating - a rarer breed, and exactly the point. Co-founders Austin, Justin and Brandon Woodward assembled a team where CPAs and tax attorneys sat next to software developers from day one.
That pairing is the whole thesis. You cannot fake your way through regulatory accuracy with a slick UI; the math either ties out or it doesn't. In June 2023, Lindsey Argalas - a veteran of Intuit and Santander - took over as CEO to steer the company from crypto-tax startup into a broader, global compliance platform.
Taxbit raised a $100M Series A and, just five months later, a $130M Series B that minted it a unicorn at a $1.33B valuation. In 2024, In-Q-Tel joined an undisclosed round - a notable signal of public-sector interest.
Backers include Paradigm, Tiger Global, IVP, Insight Partners, Sapphire Ventures, Madrona, 9Yards Capital and In-Q-Tel.
Won The Digital Banker's 2025 Digital Assets Award for Best Technology Solution Provider - Tax & Compliance Automation.
Expanded product lines and partnerships heading into mandatory 1099-DA reporting for the 2025 tax year.
Introduced Form 1099-DA support for digital-asset brokers under finalized IRS regulations - ahead of the deadline.
Raised an undisclosed venture round with In-Q-Tel participating.
Exchanges, banks, fintechs and government agencies route their reporting through Taxbit. The recurring irony: the company's customers include the very institution most filers dread.
Return to that back office. Same deadline, same mountain of trades, same regulator waiting on the other end. Only now the spreadsheets are gone.
The data flows in, gets reconciled, and walks out as forms - over a hundred million of them, by the company's count. The compliance officer who used to lose February now spends it reviewing exceptions instead of building reports from scratch. The terror of getting it wrong in front of the IRS has been swapped for a dashboard.
That is the quiet trick of Taxbit. It did not make crypto exciting. It made the most anxious part of it - the part where money meets the law - predictable. In an industry addicted to disruption, betting on the dullest, most unavoidable obligation in finance turned out to be the sharpest move of all.
Somewhere, a compliance officer exhales. The forms are filed. That is the whole story, and for Taxbit, it is the entire business.