Abstract

An ecosystem of tax Apps and services that use machine-enforceable Inter-Blockchain Communication (IBC) protocol to exchange digital assets and data. Tax & Block, a trademark of Amoldi, LLC, aims to provide the best tax filing solutions that reshape tax professionals’ businesses, meet taxpayers’ needs, and potentially serve as a high-impact use case for tax administration improvement using blockchain technology. In the presence of intense competition going on between tax preparation software and tax preparation services, most taxpayers primarily opt for tax preparation software to save some cash. While the tax software option offers flexibility and upfront money saving, this underscores the potential of getting out of your hard work and the maximization of tax returns and/or minimization of tax liability in the back end, especially when dealing with complex taxes. Additionally, the tax system complexity increasing with the current exponential growth of both interests and investments such as in crypto assets brings about risks of audits that may also end up with legal actions in case of tax fraud. Finally, the unnoticed tax expectations gap amplifies losses in the tax administration.. We propose a blockchain network that combines both the advantage of the tax preparation software flexibility and affordability as well as the benefits of letting taxpayers get matched with tax experts to get their tax return filings done at zero or low monetary costs depending on tax forms' complexity. Doing so, Tax & Block subsequently unleashes a distributed file storage system as an alternative to big companies’ centralized systems for the benefits of individuals and small businesses that care about data ownership and high-standard security. Furthermore, Tax & Block leverages Cosmos technology to lay out a complete blockchain framework that facilitates the development of Tax Marketplace- Specific Blockchains (TMSBs) in a few lines of code to comply with different countries’ tax systems. Finally, to support blockchain platform operations, and real-time payment transactions as well as stores of value, various tokens including a native cryptocurrency or coin named T&B make up the peer-to-peer electronic tax ecosystem. ..More