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Full-Stack Web3 dApp Development
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Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

Tax Reporting & Withholding Automation

Smart contract modules that automatically calculate, withhold, and segregate tax obligations (e.g., for US-sourced income) at the transaction level for fund distributions.
Chainscore © 2026
overview
CORE SERVICE

Smart Contract Development

Secure, production-ready smart contracts built for scale and compliance.

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.

  • 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.

key-features-cards
AUTOMATE COMPLIANCE, REDUCE RISK

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.

01

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.

>99.5%
Categorization Accuracy
500+
Protocols Supported
02

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.

6 Methods
Accounting Standards
Sub-second
Portfolio Sync
03

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.

40+
Jurisdictions
99.9% SLA
Uptime
04

Audit-Ready Reporting & Reconciliation

Generate comprehensive audit trails, transaction ledgers, and reconciliation reports. All data is cryptographically signed and stored with immutable integrity proofs.

Immutable
Audit Trail
24/7
Data Access
05

Regulatory Intelligence & Updates

Our compliance engine automatically updates with new tax regulations (IRS, EU MiCA, etc.), ensuring your reporting remains current without manual intervention.

< 24h
Update Deployment
Proactive
Alerts
06

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.

SOC 2
Certified
Bank-Grade
Encryption
benefits
TURNKEY COMPLIANCE AUTOMATION

Business Outcomes for Fund Managers

Our automated tax reporting and withholding platform delivers measurable operational efficiency, reduces risk, and unlocks new investor opportunities.

01

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.

90%
Time Saved
100%
Accuracy
02

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.

24/7
Real-time Processing
150+
Jurisdictions
03

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.

70%
Cost Reduction
2 Weeks
Integration Time
04

Scale Investor Onboarding & Accreditation

Streamlined digital onboarding with integrated KYC/AML checks and automated accredited investor verification. Accelerate capital deployment while maintaining strict compliance.

5 Min
Avg. Onboarding
SOC 2
Compliance
05

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.

Real-time
Data Sync
Custom
Reporting
06

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.

Proactive
Updates
Audit-Ready
Trail
The Infrastructure Decision for Web3 Finance

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 FactorBuild In-HouseChainscore 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

how-we-deliver
PREDICTABLE DEPLOYMENT

Our Implementation Process

A structured, phased approach to integrate automated tax compliance into your platform with minimal disruption and maximum speed.

01

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.

1-2 days
Workshop
100%
Requirement Clarity
02

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.

< 1 week
Integration Time
Real-time
Data Sync
03

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).

150+
Protocols Supported
50+
Jurisdictions Mapped
04

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.

SOC 2
Framework
Pen Tested
Security
05

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.

2-3 days
Review Cycle
Sandbox API
Test Environment
06

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.

24/7
Monitoring
99.9% SLA
Uptime
security
CORE SERVICE

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+, OpenZeppelin libraries, and comprehensive unit/integration testing.
  • Full-Spectrum Contracts: From standard ERC-20, ERC-721, and ERC-1155 tokens 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.

Tax Reporting & Withholding

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.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team