In brief
- A crypto tax company has produced a library of expert opinions on unclear issues.
- It costs $99 per year to access the library.
- It aims to provide academic perspectives to professionals who deal with sparse IRS guidelines.
Crypto tax company Lukka today launched Lukka Library, a database of expert opinions on open tax, accounting, and legal issues for the crypto industry. Lukka Library is the brainchild of one of the IRS’s foremost tax experts and comprises legal papers from prominent legal institutions.
Authors can contribute short-form papers that address open issues for the industry—issues unresolved by patchy IRS and federal guidelines on crypto. Over a dozen authors have so far contributed, among them professionals from Mayer Brown; McDermott, Will & Emery; Simmons & Simmons; Steptoe & Johnson; and the University of Pennsylvania.
Lukka Library is meant for tax professionals who might not be up on crypto, as well as crypto companies and firms looking to dive into the space. However, a Lukka spokesperson told Decrypt that, even with the delay of tax day by three months because of coronavirus, the library isn't really designed to offer guidance for this year’s taxes. Instead, it's filled with academic perspectives on relevant issues.
Moreover, the spokesperson said, "Lukka Library isn't limited to tax and isn't intended to be official legal or tax counsel."
There are currently 40 papers in the library, and authors have committed to providing dozens more. Think of it as akin to the Crypto Ratings Council—an industry body that discusses whether tokens are securities under US law in the absence of clear SEC guidelines.
The main selling point is cost: An annual subscription to Lukka Library costs $99. Subscribers can scan through the database to get the latest analysis to inform their decisions and to find experts to quiz on tax issues, “a task that could normally cost clients many thousands of consulting dollars and potentially weeks to research,” said Andrea Kramer, Partner at McDermott, Will & Emery, in a statement provided to Decrypt.
Lukka Library comes from the mind of Roger Brown, Lukka’s Head of Tax and Regulatory Affairs. Brown worked as special counsel for the Internal Revenue Service back in the 90s and has since held senior positions at top professional services firms.
Update: This article has been updated to clarify that Lukka Library is not designed to be used as tax advice for 2019 filings.