VERITAS — IRS Compliance Briefing

Purpose and Positioning

VERITAS does not calculate taxes, custody assets or perform withholding. Instead, it creates a forensic trail for every crypto wage or business payment so that companies can classify income, deduce fair market value at send-time, and reconcile these payments in existing payroll and accounting systems.

Non custodial Classification only FMV timestamp logging

Alignment with IRS Rules

IRS Requirement	How VERITAS Supports
Taxable events must be reported at fair market value at time of transaction.	Every payment is logged with FMV and timestamp directly linked to a verified entity.
Crypto wages count as income.	VERITAS tags payments as wage, vendor payment or collateral within PDAs.
Transaction records must be auditable.	All actions write immutable evidence into PDAs mapped to wallets and business entities.
Employers remain responsible for classification and withholding.	VERITAS does not replace payroll; it surfaces structured data for employers to integrate.

Audit Evidence Model

By separating reporting infrastructure from tax computation, VERITAS provides a neutral evidentiary layer that IRS audits can reference, without creating tax advisory risk or third party obligations for the protocol.

Timestamped FMV Each event logs valuation data at the moment of transfer, reducing audit disputes.

Intent Classification Wages, vendor payments, loans and collateral are marked distinctly at send-time.

Identity Mapping Every payer and payee must be a verified entity or employee before interaction.

Requested Outcome

VERITAS requests acknowledgment that an infrastructure-only recordkeeping service that does not perform tax withholding, custody or computation can operate as a neutral reporting tool for businesses using digital assets.

Classification, identity verification and FMV documentation can remain protocol-level.
Employers retain responsibility for withholding and tax payment.
The IRS may use PDAs as evidence during audits or examinations.