We architect and deploy audit-ready smart contracts on EVM and Solana chains. Our development process is built on OpenZeppelin standards and includes formal verification for critical logic.
Tax Reporting & Withholding Automation
Smart Contract Development
Secure, production-ready smart contracts built for scale and compliance.
- Custom Tokenomics & DeFi Protocols:
ERC-20,ERC-721, AMMs, lending/borrowing pools, and staking systems. - Enterprise Integration: Gas-optimized contracts with upgradability patterns and multi-sig administration.
- Security-First Delivery: Every contract undergoes internal review and is prepared for third-party audits from firms like CertiK or Quantstamp.
Reduce your time-to-audit by 40% with our structured development and documentation practices.
Core Capabilities of Our Tax Automation Modules
Our modular platform delivers enterprise-grade tax compliance for crypto-native businesses, eliminating manual processes and ensuring regulatory accuracy.
Real-Time Transaction Categorization
Automatically classify DeFi, NFT, and staking activities with >99.5% accuracy using our proprietary rule engine. Supports 500+ protocols and 100+ token standards out-of-the-box.
Automated Cost Basis & Gain/Loss Calculation
FIFO, LIFO, and HIFO accounting methods with support for airdrops, hard forks, and staking rewards. Generate compliant 1099-B and 8949 forms automatically.
Global Withholding Tax Engine
Dynamic tax rate application based on user jurisdiction (US 1099, EU DAC8, etc.) with automated withholding, reporting, and remittance workflows for 40+ countries.
Audit-Ready Reporting & Reconciliation
Generate comprehensive audit trails, transaction ledgers, and reconciliation reports. All data is cryptographically signed and stored with immutable integrity proofs.
Regulatory Intelligence & Updates
Our compliance engine automatically updates with new tax regulations (IRS, EU MiCA, etc.), ensuring your reporting remains current without manual intervention.
Enterprise-Grade Security & Privacy
SOC 2 Type II certified infrastructure with end-to-end encryption, zero-knowledge proofs for sensitive data, and role-based access controls for your finance team.
Business Outcomes for Fund Managers
Our automated tax reporting and withholding platform delivers measurable operational efficiency, reduces risk, and unlocks new investor opportunities.
Eliminate Manual Reporting Errors
Automated generation of IRS Forms 1042-S, 1099, and K-1s directly from on-chain and off-chain data. Reduces reconciliation time by 90% and ensures 100% accuracy for investor filings.
Automate Global Withholding Compliance
Real-time tax withholding for US-sourced income and FATCA/CRS obligations. Automated W-8BEN/W-9 collection and validation ensures full compliance across all investor jurisdictions.
Reduce Operational Overhead by 70%
Replace manual spreadsheets and fragmented tools with a single, auditable platform. Our API-first design integrates with your existing fund admin and accounting software.
Scale Investor Onboarding & Accreditation
Streamlined digital onboarding with integrated KYC/AML checks and automated accredited investor verification. Accelerate capital deployment while maintaining strict compliance.
Gain Real-Time Portfolio & Tax Visibility
Unified dashboard for fund managers provides instant visibility into realized/unrealized gains, tax liabilities, and investor-specific reporting status across all assets.
Future-Proof for Regulatory Changes
Our platform is continuously updated for new global tax regulations (e.g., DAC8, MiCA). Proactive alerts and automated rule updates ensure your fund remains compliant.
Build vs. Buy: Automated Tax Compliance
A detailed comparison of the time, cost, and risk involved in developing a custom tax engine versus implementing Chainscore's proven solution.
| Key Factor | Build In-House | Chainscore Platform |
|---|---|---|
Time to Production | 6-12+ months | 4-8 weeks |
Initial Development Cost | $250K - $600K+ | $50K - $150K |
Annual Maintenance & Updates | $150K+ (2-3 engineers) | Included in SLA |
Regulatory Coverage | Manual research & integration | Pre-built for 30+ jurisdictions |
Security & Audit Status | High risk (unaudited custom code) | Low risk (audited, battle-tested) |
Form 1099, 1042-S Generation | Requires separate development | Automated, compliant output |
Real-time Withholding Engine | Complex to build & test | Pre-configured & live |
Ongoing Legal Review | Your responsibility & cost | Managed by our compliance team |
API & Integration Support | You build and maintain | Full SDK, docs, and support |
Total Cost of Ownership (Year 1) | $400K - $750K+ | $75K - $200K |
Our Implementation Process
A structured, phased approach to integrate automated tax compliance into your platform with minimal disruption and maximum speed.
Discovery & Scoping
We conduct a technical deep-dive to map your transaction types, user jurisdictions, and existing data flows. Deliverable: A detailed implementation plan with timelines and integration points.
Data Pipeline Integration
Our engineers connect to your on-chain data (via RPC nodes/indexers) and off-chain sources (CEX APIs, internal DBs). We build resilient ETL pipelines for real-time transaction ingestion.
Rule Engine Configuration
We configure our tax logic engine with your specific tokenomics, staking rewards, DeFi protocols (Uniswap, Aave, Compound), and jurisdictional rules (US 1099, EU DAC8, others).
Security & Compliance Audit
The entire system undergoes internal security review and compliance validation. We ensure data handling meets GDPR/CCPA standards and calculations match regulatory guidelines.
Staging & Client Review
We deploy a full staging environment with your data. You review generated tax forms (8949, Schedule D), withholding reports, and user dashboards, providing feedback for final adjustments.
Production Launch & Support
We manage the production cutover, monitor system health, and provide dedicated technical support. Includes ongoing updates for new tax laws and protocol integrations.
Smart Contract Development
Secure, production-ready smart contracts built by Web3 experts for your token, DeFi, or NFT project.
We architect and deploy custom smart contracts that are secure, gas-optimized, and tailored to your specific business logic. Our development process is built on industry best practices and battle-tested patterns.
- Security-First Development: Code built with
Solidity 0.8+,OpenZeppelinlibraries, and comprehensive unit/integration testing. - Full-Spectrum Contracts: From standard
ERC-20,ERC-721, andERC-1155tokens to complex DeFi primitives like AMMs, staking, and governance. - Gas Optimization: Every contract is audited for efficiency, targeting up to 40% lower gas costs for end-users.
- End-to-End Delivery: We provide deployment scripts, verification, and documentation for seamless integration.
We deliver contracts you can trust, with a focus on mainnet readiness and long-term maintainability.
Frequently Asked Questions
Get clear answers on how our automated tax compliance solutions integrate with your platform, ensuring accuracy and regulatory adherence.
We provide a suite of API endpoints and smart contract libraries designed for seamless integration. Our system connects directly to your transaction database or blockchain indexer, processes data in real-time, and generates tax forms (1099-MISC, 1099-B, 1042-S) and withholding calculations. Typical integration takes 2-4 weeks using our documented SDKs.
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.