Note by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
A group of students and former students at James Madison University is using an initial coin offering (ICO) to launch a business called TaxToken. Those who purchase the company's virtual tokens don't get any equity, but they can use the company's applications, and benefit (or lose) if the value of their tokens increases (or decreases). So far, the company has raised over $700,000 in this manner. People can buy cryptocurrency using smartphone apps like Coinbase. Initial coin offerings are a way to raise money without complying with securities rules.
According to their web site at https://taxtoken.io/, "TaxToken harnesses the power of blockchain to revolutionize all forms of personal and business accounting:
Automatic generation of ready-to-file tax reports,
Patent-pending “One-Click” Crypto gains and losses, tracker
Advanced accounting automation with smart contracts & invoices,
Enhanced cashflow with lower fees and instant transactions,
Real-time reporting and data analytics,
Superior auditability with instant, third-party validation,
Year-round coverage of all taxable events."
This article also appeared in the on-line version of The Denver Post. See http://www.denverpost.com/2017/12/03/start-ups-embrace-cryptocurrency-raise-needed-capital/
For more information about TaxToken see https://taxtoken.io/wp-content/uploads/2017/11/DRAFT6_TaxToken_Whitepaper_2.0-1.pdf
Appelbaum, D., A. Kogan and M. A. Vasarhelyi. 2017. An introduction to data analysis for auditors and accountants. The CPA Journal (February): 32-37. (Summary).
Martin, J. R. Not dated. New and old ways to spend and pay or delay. Management And Accounting Web. http://maaw.info/ArticleSummaries/ArtSumSpendandPay.htm
Martin, J. R. Not dated. What is data mining? Management And Accounting Web. http://maaw.info/DataMining.htm
Roberts-Witt, S. L. 2002. Data mining: What lies beneath? Finding patterns in customer behavior can deliver profitable insights into your business. PC Magazine (November, 19): iBiz 1-6. (Note).