Introduction
Many crypto investors trust CountDeFi for their tax needs, but is it truly a safe and reliable solution?
This section will outline the hidden dangers of relying on CountDeFi for tax reporting.
1. What Happens If CountDeFi Shuts Down?
Crypto tax software is not permanent.
- If CountDeFi goes out of business, will you still have access to past reports?
- The CRA requires six years of tax record retention, and software companies do not guarantee data availability.
- A professional accountant securely stores your tax history, preventing record loss.
2. CountDeFi Does Not Take Responsibility for Tax Errors
Unlike an accountant, CountDeFi is not accountable for incorrect tax reports.
- If an error is found, you must correct it yourself, at your own risk.
- Tax miscalculations could result in unnecessary tax payments or CRA penalties.
- An accountant ensures every detail is correct and compliant before filing
3. No Legal Support if the CRA Audits You
If your tax return is flagged for an audit:
- CountDeFi does not provide legal support or CRA defense.
- You will need to hire an accountant after the fact, often at a higher cost.
- With an accountant, you are protected in case of tax audits.
Crypto audits are increasing, and software does not provide the necessary protection.
4. Security Risks and Data Vulnerabilities
- CountDeFi relies on API integrations, which can be compromised by security breaches.
- If the platform is hacked, your tax data could be exposed.
- A professional accountant provides a secure, offline tax filing approach, eliminating reliance on external software.
Conclusion
While CountDeFi offers tax automation, it does not provide the security, accuracy, or audit protection needed for crypto tax compliance. For professional tax handling, Tax Partners is the smarter choice. Contact us today to ensure your crypto taxes are professionally managed.
This article is written for educational purposes.
Should you have any inquiries, please do not hesitate to contact us at 905-448-2241, via email at [email protected], or by visiting our website at taxpartnersoshawa.com.
Tax Partners has been operational since 1981 and is recognized as one of the leading tax and accounting firms in North America. Contact us today for a FREE initial consultation appointment.
