Methods, systems, and tools for providing tax related services for virtual currency holdings

A system, comprising:

• a memory;
• and
• a processor coupled to the memory, wherein the processor is configured to:
• receive, from a virtual currency network, a data set reflecting a plurality of virtual currency transactions performed by a plurality of digital wallets associated with a user;
• convert, by identifying and extracting contents of one or more data fields of the data set, the data set into a plurality of virtual currency transaction records in a specified format;
• identify, among the plurality of virtual currency transactions, a set of taxable transactions;
• identify, among the plurality of virtual currency transaction records, a set of incoming transactions representing receipts of a virtual currency;
• identify, among the plurality of virtual currency transaction records, a set of outgoing transactions representing dispositions of the virtual currency;
• identify, among the set of incoming transactions, an incoming transaction having a first transaction identifier matching a second transaction identifier of an outgoing transaction of the set of outgoing transactions;
• exclude, from the set of taxable transactions, the identified incoming transaction and the identified outgoing transaction as representing a non-taxable transfer among virtual currency wallets of the user;
• compute a taxable income of the user based on the identified set of taxable transactions;
• compute an estimated income tax payable by the user on the taxable income;
• and
• electronically file a statement of the estimated income tax.

A non-transitory computer-readable storage medium comprising executable instructions which, when executed by a processor, cause the processor to:

• receive, from a virtual currency network, a data set reflecting a plurality of virtual currency transactions performed by a plurality of digital wallets associated with a user;
• convert, by identifying and extracting contents of one or more data fields of the data set, the data set into a plurality of virtual currency transaction records in a specified format;
• identify, among the plurality of virtual currency transaction records, a set of taxable transactions;
• identify, among the plurality of virtual currency transaction records, a set of incoming transactions representing receipts of a virtual currency;
• identify, among the plurality of virtual currency transactions, a set of outgoing transactions representing dispositions of the virtual currency;
• identify, among the set of incoming transactions, an incoming transaction having a first transaction identifier matching a second transaction identifier of an outgoing transaction of the set of outgoing transactions;
• exclude, from the set of taxable transactions, the identified incoming transaction and the identified outgoing transaction as representing a non-taxable transfer among virtual currency wallets of the user;
• compute a taxable income of the user based on the identified set of taxable transactions;
• compute an estimated income tax payable by the user on the taxable income;
• and
• electronically file a statement of the estimated income tax.