Blockchain hosting firm Node40 LLC has released a new product that allows Americans to report their bitcoin profits and losses to the Internal Revenue Service.

Called Node40 Balance, the new service is said to set a “new standard in precision and simplicity” as it is able to calculate net gains and losses for every single transaction made throughout a calendar year and roll the details into an 8949 form, a form required to be lodged by taxpayers with the IRS that details capital gains and losses from investment activity.

“Node40 Balance is a feature packed blockchain accounting service that brings the familiarity of services like QuickBooks or TurboTax to the world of digital currency,” Node40 Chief Executive Officer Perry Woodin said in a statement. “Node40 Balance analyzes the blockchain and provides valuation data for all of your transactions. You annotate your transactions according to your real-world needs and Node40 Balance provides reports with your gains, losses, and income.”

Woodin claimed that Node40 Balance is unique in the precision in which profits and losses are calculated. It uses the true carrying cost and days held to calculate precise valuations that ensure bitcoin investors are not overreporting their tax liability.

“When transacting in digital currency, most transactions will have multiple inputs, each with a different cost basis,” Woodin added. “Unless you are able to create an exact transaction, the cost basis of the change needs to be tracked along with the amount of days carried.”

The cloud-based software as a service tool is being offered for purchase by subscription at one-, three-, and 12-month durations, as well as a free trial period. It claims to cover every demographic, including individuals, small business, large corporations and government departments. Node40 Balance is available for Node40 customers from today and will be opened to the broader bitcoin community in the near future.

Photo: btckeychain/Flickr