Tax Services

Formidium offers a full suite of tax services to address the complexities and challenges in tax calculations, reporting, and filings for different types of funds including Digital asset funds, Hedge funds, Private equity funds, Venture Funds and SPV. We help a vast global network of managers located in more than 10 countries with our all-inclusive tax services.

Why Formidium Tax Services ?

Using our Proprietary Tax Accounting & Allocation Technology, our tax specialists provide you with industry-leading tax support coupled with the highest level of client service.

We are located in Downers Grove, IL serving the tax reporting needs of 600+ Funds and have licensed CPAs leading our tax practice. Our tax service team of 75+ experienced and qualified professionals are prepared to handle tax filings and reporting of schedule K-1s for your investors. The Proprietary Tax Accounting & Allocation Technology we use allows us to fetch, clean, and sanitize transactional data, calculate capital gains/losses using various methods, reconcile and process a high volume of data, and tax lot accounting.

Cutting-edge technology and first-class client service are at the core of everything we do.

Services We Offer

Our comprehensive tax services span your entity's entire lifecycle, and include:



  • Review of private placement memorandum tax section.
  • Preparation of U.S. federal returns (1065, 1120, 1120-S), and state tax returns for all U.S. states, including handling composite tax returns, state filing fees, state tax withholdings, and other related tasks.
  • Preparation of all supporting and additional tax forms that are filed along with federal and state tax returns. (Form 8949, 4797, 8825, 8990, 8082, 8832-B, etc.)
  • Preparation of federal and state schedule K-1 reporting for investors.
  • Partner tax allocations using appropriate allocation methods.
  • Preparation and compliance with foreign investments. (Form 5471, 8865)
  • U.S. tax reporting and compliance for Non-U.S. investors. (Form 1042, 8804, 8805)
  • Preparation of international reporting tax forms K-2 and K-3.
  • Preparation of other miscellaneous forms like Form 1099s, name change, address change forms, and many more.
  • Preparation of responses to IRS and state revenue notices.
  • Offering and organizing cost amortization, book-to-tax reconciliations, maintaining tax basis for investor's capital and fund's investment, and handling the assignment of interest from one investor to another.
  • Tax lot level capital gain/loss calculations, wash sales calculation.
  • Carried interest reporting under IRC 1061.

Our comprehensive tax services span your entity's entire lifecycle, and include:



  • All the items covered for U.S. Funds/Entities.
  • Preparation of foreign partnerships, blocking corporations' tax returns, including foreign master-feeder structures.
  • Analysis of the entity's structure to determine its applicable U.S. tax filings. (Passive foreign investment company vs. controlled foreign corporation determination)
  • Filing applicable tax forms for Non-U.S. funds/entities, including Form 8621, 5472 reporting.
  • Preparation of K-1 equivalent forms for Non-U.S. entity/fund's investors, including PFIC/CFC reporting.

We provide specialized tax services tailored to the requirements of crypto & SPV funds including analysis and tax adjustments for:



Crypto Specific Tax Services
  • Contribution-in-kind and distribution-in-kind.
  • Wallet-to-wallet transfers.
  • Ordinary gain on staking and lending.
  • Receiving crypto from an airdrop, rewards, and mining income.
  • Crypto interest earnings from Defi lending.
  • Crypto earned from liquidity pools and interest-bearing
    accounts etc.
  • Trading in coins, tokens, NFT, SAFE/SAFTs.
SPV Specific Tax Services
  • Schedule K-1 received from upper-tier SPV (including multiple upper-tier investments)
  • Waterfall distributions for tax allocation.
  • Committed capital structures.
  • Business interest expense limitations.
  • Qualified business income deduction.
  • Global intangible low-taxed income. (GILTI)
  • Foreign-derived intangible income. (FDII)
  • Carry rules under section 1061.
  • Qualified small business stock analysis under section 1202.
  • Itemized deductions and net operating losses.
  • Expensing/depreciation.
  • Effectively connected income and withholdings.
  • State source income apportionment factor calculation, state tax withholdings, etc.

Seamless Tax

Seamless Tax is our proprietary tax accounting and allocation technology, a part of our flagship fund accounting software, SeamlessTM. The tax accounting and allocations technology redefines and streamlines the process of calculation & allocation of capital gain/other incomes/expenses, federal/state returns preparation, tax schedules such as K1s, and informational returns such as 1099s and 1042s for Crypto/Digital asset funds, Hedge Funds, Venture Funds, Private Equity Funds and SPV. This tax accounting and allocation technology enables tax professionals and practitioners to spend more time on tax data analysis and handling complex tax matters.

Seamless Tax has API connectivity with 160+ exchanges and custodians across digital assets, handles complex allocations & waterfall calculations including In-kind contribution and In-kind distributions of digital assets, process comprehensive DeFi & CeFi transactions and provides tax lot reporting which includes airdrops, mining income and staking rewards.

Seamless Tax generates fund level taxable income/loss numbers and investor level tax numbers after different adjustments as per the tax provisions. It can generate a lot wise capital gain (loss) report with bifurcation of gain (loss) in short/long term and a wash sales report based on trades posted on system.

Seamless Tax ensures that all investor-level tax allocations are calculated efficiently and books vs. tax adjustments are tracked & reconciled. It has good quality controls which ensures efficient and accurate processing of tax returns, K-1s,1099s, and other tax schedules required by US tax returns for investment funds.

Client Testimonial

"Hear what Rob Topping, has to say about his experience with our tax returns services"

Rob Topping

Founder and Managing Member - Topping Capital

Client Testimonial

"Hear what Sharad Daswani, has to say about his experience with our tax returns services"

Sharad Daswani

Founding Member - Spru Crew Investor Circle

Client Testimonial

"Hear what Indra Chandra, has to say about his experience with our tax returns services"

Indra Chandra

CFA Managing Member - CIG Spectrum Capital, LLC

Client Testimonial

"Hear what our client Michael Caravaglio has to say about our Tax Returns services"

Michael Caravaglio

Managing Partner - Four Dimensional Partners