Crypto Taxes Are Complicated.
Your Reporting Doesn't Have to Be.
We reconcile multi-wallet portfolios, trace missing cost basis, and deliver IRS-compliant reports covering every trade, swap, stake, and DeFi interaction you've made.
What the IRS Actually Requires for Crypto Reporting
Cryptocurrency taxation is governed by specific IRS guidance. Understanding the rules is the first step to reporting correctly — and defensibly.
Crypto Is Property, Not Currency
The IRS established in Notice 2014-21 that virtual currency is treated as property for federal tax purposes. Every disposal — sale, trade, swap, or use to purchase goods — is a taxable event requiring gain or loss calculation based on your cost basis.
Staking Rewards Are Taxable Income
Revenue Ruling 2023-14 confirmed that staking rewards are included in gross income when received, at fair market value on the date of receipt. This applies to proof-of-stake rewards across Ethereum, Solana, Cardano, and all other PoS networks.
Every Trade Must Be Reported
Capital gains and losses from crypto disposals are reported on Form 8949 and carried to Schedule D. Short-term gains (assets held under one year) are taxed as ordinary income. Long-term gains (over one year) qualify for preferential rates of 0%, 15%, or 20%.
New Broker Reporting Requirements
Starting in tax year 2025, crypto brokers are required to issue Form 1099-DA reporting gross proceeds from digital asset sales. The IRS will now cross-reference these forms against your tax return, making accurate reporting more critical than ever.
Foreign Exchange Reporting
U.S. persons with accounts on foreign cryptocurrency exchanges must file an FBAR if the aggregate value of foreign accounts exceeds $10,000 at any point during the year. We review foreign exchange activity as part of every crypto engagement.
Method Selection Affects Your Tax Bill
The IRS allows FIFO, HIFO, and specific identification for crypto cost basis. Method selection must be consistent and documented. HIFO typically minimizes taxable gains. We evaluate which method benefits each client before filing.
Every Type of Crypto Activity, Handled Correctly
Most crypto tax firms can handle straightforward exchange trading. We go further - into DeFi, NFTs, cross-chain activity, and scenarios other preparers won't touch.
Exchange Trading
Coinbase, Kraken, Binance, Gemini, and all major centralized exchanges. We import, reconcile, and verify accuracy before reporting.
DeFi Protocols
Uniswap, Aave, Compound, Curve, and other DEXs. Token swaps are taxable disposals. Liquidity provision and yield farming add additional complexity we handle directly.
Staking + Yield
Staking rewards on Ethereum, Solana, Cardano, and all PoS networks. Classified as ordinary income under Rev. Rul. 2023-14 at FMV on receipt date.
NFTs
NFT purchases, sales, and royalties. Sales are capital events. Creator royalties are ordinary income. Cross-platform activity across OpenSea, Blur, and others consolidated.
Bankruptcy Distributions
Celsius, BlockFi, Voyager, and FTX distributions. We calculate gain or loss, classify claim types, and document cost basis carryforward methodology.
Missing Cost Basis
Records from 2017-2019 are frequently missing. We use blockchain explorers, on-chain data, and exchange archives to reconstruct history before defaulting to worst-case assumptions.
Hacked + Lost Wallets
Theft loss documentation, compromised wallet forensics, and IRS-compliant reporting for stolen assets. We trace activity on-chain to build defensible records.
Mining Income
Mining rewards are ordinary income at FMV on receipt date, then subject to capital gains treatment on disposal. Schedule C treatment applies when conducted as a business.
Multi-Wallet Portfolios
Dozens of wallets, multiple chains, years of history. We consolidate everything into a single reconciled dataset with verified cost basis before generating any reports.
Our 8-Step Crypto Tax Process
We don't export a report from one platform and call it done. Every engagement goes through a structured process designed to produce defensible, accurate results.
Free Consultation and Scope Assessment
We review your crypto history: exchanges used, wallet count, years of activity, and any prior reporting issues. This determines scope, software selection, and final pricing before any work begins.
Data Collection and Normalization
We gather transaction exports from all exchanges, wallets, and platforms. Data is normalized into a consistent format so activity across different systems can be matched and reconciled accurately.
Software-Based Reconciliation
We run your data through professional crypto tax software - Koinly, CoinTracker, CoinLedger, etc., that is selected based on your specific activity and chains. No single platform handles every edge case, so we use the best tool for each situation.
Blockchain Analysis and Manual Tracing
When software produces gaps or errors, we go on-chain. Using Etherscan, Solscan, and other block explorers, we trace transactions manually to resolve missing cost basis, internal wallet transfers, and unmatched deposits.
Client Collaboration on Unclear Transactions
Ambiguous transactions get flagged for client review before classification. We don't guess on unclear items - we ask. This keeps your return accurate and eliminates surprises later.
Income, Gain, and Loss Classification
Every transaction is classified under current IRS guidance: capital gains (short vs. long term), ordinary income (staking, mining, airdrops), or non-taxable transfers. Cost basis method is selected and documented.
Report Generation and Documentation
We produce a reconciled transaction report, Form 8949 data, income summary, and supporting documentation for your tax return. All backup is organized and retained in case of IRS review.
Final Review and Delivery
A thorough final review before delivery. We check totals, verify classification logic, and confirm the output matches your known history. You receive clean, defensible reports ready for filing.
The Right Cost Basis Method Can Reduce Your Tax Bill Significantly
The IRS permits multiple cost basis accounting methods for cryptocurrency. We evaluate which method produces the best outcome for your situation before filing.
Your earliest-purchased coins are treated as sold first. In a long bull market, FIFO typically produces the highest taxable gains because early purchases often have the lowest cost basis.
Your highest-cost purchases are treated as sold first. This minimizes current-year gains by applying the largest cost basis against your proceeds. Often the optimal method for active traders.
You designate exactly which lots were sold at the time of disposal. The most flexible method and most labor-intensive to document. Requires adequate records and contemporaneous identification.
The Cases Other Preparers Send Away. We Handle Them.
These are the situations where off-the-shelf software fails and most preparers say "I don't do that." We've worked through all of them.
Lost Access to Old Exchange Accounts
We reconstruct transaction history as completely as possible using blockchain data, any available statements, and exchange archives before estimating or defaulting to zero cost basis.
Missing Records from 2017-2019 Tax Years
Early crypto adopters frequently have gaps. We require wallet addresses and use block explorers to pull on-chain history. Pre-2018 transactions are reconstructed from available blockchain data.
Wallets the Client No Longer Remembers
We trace activity patterns, inflows, outflows, connected addresses, to identify forgotten wallets and reconstruct a complete portfolio history across all accounts.
Celsius, BlockFi, and Voyager Bankruptcy Distributions
We calculate gain or loss on distributions across all distribution categories, document cost basis carryforward methodology, and handle the cross-year complexity of multi-payment distributions received in 2024 and 2025.
Hacked or Compromised Wallets
Theft losses require documentation of the compromised wallet address, transaction history showing unauthorized transfers, and supporting evidence. We perform on-chain forensics to build the documentation file needed for IRS purposes.
IRS CP2000 Notices for Unreported Crypto
We help you understand what the IRS received from 1099 filings, reconcile the discrepancy against your actual activity, and prepare accurate amended or response documentation. We do not provide formal IRS representation, but we provide the analysis and backup needed.
Answers to the Questions We Get Every Day
Straight answers based on current IRS guidance. Specific information about how crypto taxation actually works.
IRS Notice 2014-21 →
Rev. Rul. 2023-14 →
IRS Notice 2014-21 →
Fixed Project Pricing. No Hourly Surprises.
Most crypto tax projects are quoted at a fixed price based on scope. You know the full cost before we begin. A 50% deposit is usually required to start work.
- 1 to 3 exchanges with complete export data
- Straightforward trading history - no DeFi or NFTs
- Cost basis calculation and method selection
- Form 8949 preparation and Schedule D reporting
- Transaction report and supporting documentation
- 1 tax year of activity
- Multiple wallets and exchanges consolidated
- DeFi, staking, NFT, and mining activity
- Bankruptcy distribution analysis (Celsius, BlockFi, Voyager)
- Missing or incomplete cost basis investigation
- Blockchain forensics and on-chain tracing when needed
- FBAR review for foreign exchange activity
- Multiple tax years available
- High-volume portfolios priced individually - no upper cap on scope
Exact pricing is determined after your free consultation based on wallet count, exchange count, transaction volume, data quality, and complexity of activity. A fixed quote is provided in writing before any work begins. A 50% deposit may be required to start.
Ready to Get Your Crypto Taxes Done Correctly?
A free consultation takes 15-20 minutes. We'll review your situation, tell you exactly what's involved, and give you a fixed quote. No obligation.