Tax Services For Every Fund Class Including Digital Assets

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.

Who We Are

Formidium offers tailored tax services for diverse fund types, like Digital Asset, Hedge, Private Equity, Venture, and SPVs. Based in Downers Grove, IL, we serve a global clientele across 10+ countries. Trusted by 600+ funds, we provide top-tier tax support using cutting-edge Proprietary Tax Accounting & Allocation Technology. With licensed CPAs leading our team of 75+ professionals, we excel in automating tax calculations, reporting, and filings, including schedule K-1s for investors. Our technology streamlines data retrieval, cleaning, and reconciliation, ensuring accurate capital gains/loss calculations and precise tax lot accounting. At Formidium, we prioritize innovation and client service for unmatched results.

Our Services

Formidium offers specialized tax services for U.S.-based funds, particularly partnerships like hedge funds. We combine investor data with income information for precise income allocation and tax calculations.

We provide a full range of tax services, adept at simplifying complex tax calculations, reporting, and filings for various funds. Our strength lies in our technology and expertise in handling multi-currency, cryptocurrency, and global U.S.-based funds.

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.

Our Edge

Our Seamless fund accounting system, featuring Seamless Tax, revolutionizes tax services for various funds including Crypto/Digital asset funds, Hedge Funds, Venture Funds, Private Equity Funds, and SPV. It streamlines tax calculations, allocation of capital gains, and preparation of federal/state returns, K1s, 1099s, and 1042s. With API connectivity to 160+ exchanges and custodians, it handles complex transactions including DeFi & CeFi, in-kind contributions/distributions, and provides detailed tax lot reporting. Seamless Tax ensures efficient processing of tax allocations, reconciles books vs. tax adjustments, and maintains quality controls for accurate tax returns and schedules.

Our Clients

We partner with managers of digital asset, hedge, private equity, venture funds, and SPVs, navigating them through complex tax obligations.

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