Cryptocurrency has largely gone unregulated since its inception in 2009. With no central bank and governmental oversight, cryptocurrencies have served as a way for investors to skirt regulation and dodge tax authorities. However, all this changed in 2016 when the IRS took its first steps on tax enforcement. Unfortunately, the IRS’ initial attempt at providing guidance was murky at best. With questions swirling about how to properly report crypto gains/losses, Sovos, a global leader in tax software, saw an opening for a new market.
Leveraging its deep expertise in tax information reporting, Sovos adapted its solutions for cryptocurrency exchanges – helping clients minimize risks in the face of uncertain IRS regulations. To help Sovos go to market with this new use case, ARPR collaborated with the client to elevate crypto tax reporting challenges within the U.S. and discuss how tax software can minimize risks for investors.
ARPR developed a multi-pronged media outreach strategy to elevate Sovos’ subject matter experts within national and key crypto trade publications. The approach centered around two topics: 1) real-time clarifications to IRS guidance, which elevated Sovos’ expertise on crypto tax reporting, and 2) the risks associated with non-compliance, which further spotlighted the need for an automated tax solution.
Through earned media, we aimed to educate Sovos’ potential customers - crypto exchanges - while also creating a bubble-up effect among investors who should expect that their respective trading platform ensures tax compliance. In addition, ARPR managed three of Sovos’ cryptocurrency exchange customer announcements, which demonstrated early demand for the solution, and applauded the exchanges who proactively prioritized safeguarding investors.