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Crypto Fund Tax

Crypto Fund Tax is part of Formidium's tax services group. We offer a full suite of tax services to solve any complexities and challenges in tax calculations, reporting, and filings for digital asset funds. We also offer our all-inclusive tax services to a vast network of managers and funds located globally, covering hedge and private funds investing in blockchain, mining, staking, NFTs, tokenization, and real estate.

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100+

DIGITAL ASSET FUNDS

350

CLIENTS

50+

TAX PROFESSIONALS

4

OFFICES GLOBALLY

New Solution Simplifies Tax Time For Crypto Funds
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New Solution Simplifies Tax Time For Crypto Funds

Crypto Fund Tax, a full suite of tax services, including tax allocations, reporting, and filings for funds invested in digital assets, is now available from Formidium, a global leader in providing third-party fund administration and back-office technology solutions...

Why Crypto Fund Tax ?

Crypto Fund Tax is part of Formidium's tax services group. We are a licensed CPA firm located in Downers Grove, IL serving over 350 clients for their tax reporting. Our experienced and qualified tax service team includes 50+ individuals to handle tax filings and reporting of schedule K-1s for your investors. We use our in-house technology platform to connect with exchanges/wallets to fetch, clean, and sanitize transactional data, calculate capital gains/losses using various methods, reconcile and process a high volume of data, and tax lot accounting.

Using our proprietary technology, Seamless Digital, our tax specialists provide you with industry-leading tax support coupled with the highest level of client service, because cutting-edge technology and high-touch client service are at the core of everything we do.

Services we offer

We provide comprehensive tax services across entity's entire lifecycle, as described below:



  • Review of private placement memorandum tax section.
  • Preparation of U.S. federal returns (1065, 1120, 1120-S), and state tax returns for all U.S. states, including composite tax returns, handling state filing fees, state tax withholdings, etc.
  • Preparation of all supporting and additional tax forms that are filed along with federal and state tax returns. (Form 8949, 4797, 8825, 8990, 8082, 8832-B, etc.)
  • Preparation of federal and state schedule K-1 reporting for investors.
  • Partner tax allocations using appropriate allocation methods.
  • Preparation and compliance with foreign investments. (Form 5471, 8865)
  • U.S. tax reporting and compliance for Non-U.S. investors. (Form 1042, 8804, 8805)
  • Preparation of international reporting tax forms K-2 and K-3.
  • Preparation of other miscellaneous forms like Form 1099s, name change, address change forms, and many more.
  • Preparation of responses to IRS and state revenue notices.
  • Offering and organizing cost amortization, book-to-tax reconciliations, maintaining tax basis for investor's capital and fund's investment, and handling the assignment of interest from one investor to another.
  • Tax lot level capital gain/loss calculations, wash sales calculation.
  • Carried interest reporting under IRC 1061.

We provide comprehensive tax services across entity's entire lifecycle, as described below:



  • All the items covered for U.S. Funds/Entities.
  • Preparation of foreign partnerships, blocking corporations' tax returns, including foreign master-feeder structures.
  • Analysis of the entity's structure to determine its applicable U.S. tax filings. (Passive foreign investment company vs. controlled foreign corporation determination)
  • Filing applicable tax forms for Non-U.S. funds/entities, including Form 8621, 5472 reporting.
  • Preparation of K-1 equivalent forms for Non-U.S. entity/fund's investors, including PFIC/CFC reporting.

We provide specialized tax services tailored to the requirements of crypto funds including analysis and tax adjustments for:



  • Contribution-in-kind and distribution-in-kind.
  • Wallet-to-wallet transfers.
  • Ordinary gain on staking and lending.
  • Receiving crypto from an airdrop, rewards, and mining income.
  • Crypto interest earnings from Defi lending.
  • Crypto earned from liquidity pools and interest-bearing
    accounts etc.
  • Trading in coins, tokens, NFT, SAFE/SAFTs.

Client Testimonial

"Hear what Rob Topping, has to say about his experience with our tax returns services"

Rob Topping

Founder and Managing Member - Topping Capital

Client Testimonial

"Hear what our client Michael Caravaglio has to say about our Tax Returns services"

Michael Caravaglio

Managing Partner - Four Dimensional Partners