Patrick Larsen, Co-founder and CEO
We have heard many stories about entrepreneurs changing their careers and narrating tales of triumph. Joining the club is Patrick Larsen, co-founder and CEO at ZenLedger.io—one of the leading tax software for crypto investors—who started his career at the US Navy in 2002 as a helicopter pilot. Having served various organizations in different leadership roles—from M&A investment banking, marketing analytics, and e-commerce startups—Larsen finally found his calling as an entrepreneur in the world of cryptocurrencies. Considering his diverse background, one might wonder how Larsen landed in the realm of cryptocurrency investors and accountants.
It was the summer of 2017; cryptocurrency was approaching the pinnacle of success. Soon enough, Larsen was hooked. While numerous large companies were investing in cryptocurrency and blockchain projects, Larsen was fiddling with new business ideas, until he got one. “People kept suggesting about the tax problem and how cumbersome it was for them to keep the IRS off their back,” he recounts. Larsen joined forces with Bryan Starbuck (currently the CTO at ZenLedger)—who is a former AI, ML, Crypto Principal Dev Manager at Microsoft, and an expert at multiple tech stacks and programming languages—to lay the cornerstone of ZenLedger. The genesis of ZenLedger was a natural progression in helping organizations and individual investors to quickly and easily get tax forms and financial reports to trade smarter.
Contrary to popular belief that cryptocurrencies are exempt from taxes, the IRS considers cryptocurrency as assets, and tax laws pertaining to properties are applicable to cryptocurrency as well. This leaves cryptocurrency investors with an uphill task to manage a plethora of different exchanges, wallets, and transactions to file cryptocurrency taxes. A manual calculation of these taxes can be arduous for investors, certified professional accountants (CPAs), and organizations alike. As a cryptocurrency ledger analytics company, ZenLedger has developed a web-based tax tool that delivers automated procedures for an end-to-end crypto tax management. “The task of accounting for cryptocurrency investments has been notoriously difficult. Traditionally, customer service and experience have been lacking in this landscape. This is precisely why we’ve strived hard to make the software and customer service seamless. Users can avail professional advice anytime via phone, email, or chat to access the right information,” says Larsen.
ZenLedger’s tax tool works with all the major cryptocurrencies, exchanges, and fiat currencies such as Bitcoin, Ethereum, Litecoins, Dollars, Euros, Pounds Sterling, Yen, and several others. It allows the investors to import cryptocurrency transactions, calculate gains and income, and auto-fill tax forms like 8949 and Schedule D in a single tool.
Users can avail professional advice anytime via phone, email or chat to access the right information
The tool has been instrumental in helping clients minimize costs and enhance after-tax returns by automatically aggregating transactions across multiple exchanges, countries, and wallets and calculating capital gains and losses—all in one place.
ZenLedger has worked with many tax, technology, finance, and accounting experts to include best-in-class algorithms in its software and help its clients at each step of their cryptocurrency tax journey. From an onboarding standpoint, all you need to do is create an account and then start linking your wallets and exchange accounts by CSV or API in a self-service fashion. The simple workflow allows uploading transactions into the software, followed by which the ZenLedger team cleans up all those transactions to help users find the correct prices, make determinations on income or know how something was traded. The software goes through every transaction of its clients to offer a transparent and detailed auto-completed tax forms and audit reports that help the clients and their CPAs to gain a precise tax estimate and avoid overpayment of taxes. The features of the ZenLedger software make it one of the most comprehensive cryptocurrency tax software available in the market. It helps in FinCen Reporting by automatically calculating the value of foreign exchanges and alerting the client if the holdings increase above the $10000 mark. It is also the only software that tracks EOS coins accurately and facilitates the movement of these coins between Ethereum and EOS wallets. Besides, ZenLedger also offers a tax-loss harvesting tool that provides the clients with a holistic view of all the unrealized capital losses in each token type.
ZenLedger’s cryptocurrency tax software has already helped thousands of investors and accountants process millions of transactions and more than $500M of assets. Larsen shares a customer success story of a client, Luke Riddle, Employee #30 at Coinbase, who restated his taxes from 2013 using ZenLedger and found $235,000 in an overpayment to the IRS. The ZenLedger’s software also helped him find all the old records and recover lost and stolen coins because of defunct exchanges.
In order to strengthen its service portfolio, ZenLedger has partnered with TurboTax, enabling its clients to download a pre-formatted file to use for TurboTax. “We partner with the best companies in the world for accounting, to make the complex cryptocurrency taxes easy and accurate for our customers,” remarks Larsen. The company also offers round-the-clock customer support through phone, email, or chat to help its clients get the most professional advice. Moving ahead, the company is strengthening its product suite by foraying into anti-money laundering, portfolio asset management, analytics, and blockchain space.