Client Portal Get Crypto Diagnostic
// Crypto Tax Reconciliation — All 50 States

Your crypto taxes
are more wrong
than you think.
Let's fix that.

The IRS receives 1099s from every major exchange. If your cost basis isn't documented, they calculate your gain as 100% of proceeds. We reconcile your full transaction history — wallets, exchanges, DeFi, staking — and deliver reports your CPA can actually file.

Start With a $500 Diagnostic About Our Team
Crypto Tax Services Since 2019
6 Reconciliation Platforms
IRS-Ready Reports for Your CPA
// Common crypto tax problems we fix
  • 📬
    IRS CP2000 Notice
    No cost basis on file means the IRS treats 100% of your proceeds as taxable. We fix the record.
  • 🔁
    Missing or Wrong Cost Basis
    Transfers between wallets aren't taxable — but they destroy cost basis tracking if not handled correctly.
  • 🌊
    Unreported DeFi & Staking
    Staking rewards are taxable income per Rev. Rul. 2023-14. Most investors don't report them.
  • 🏦
    Bankrupt Exchange Losses
    Celsius, FTX, Voyager — we document cost basis and distributions for accurate loss reporting.
Get Your $500 Crypto Diagnostic →

Questions? Call 253-353-2040 · Mon–Fri 9am–4pm PT

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Koinly
📊
CoinLedger
📡
CoinTracker
⚡
ZenLedger
🌿
Awaken Tax
🔢
Summ
2019
Crypto Tax Work Started
// Who we work with

If your crypto situation is complicated,
you're exactly who we help.

You don't need to have it figured out before you call us. Most clients come to us with incomplete records, missing data, or a letter from the IRS — and that's fine.

💼

Multi-Wallet Investors

You hold across multiple wallets and exchanges, have years of transaction history, and have no clear picture of your total gain or loss position. We reconcile everything.

🌊

DeFi & Staking Participants

Yield farming, liquidity pools, staking rewards, bridges, wrapped tokens — every one of these has a tax implication. We know how the IRS treats each of them.

🖼️

NFT Traders

NFT sales are taxable capital gains events. Gas fees can be added to cost basis. Royalties may be ordinary income. We handle the documentation so your CPA can file correctly.

📬

CP2000 Recipients

You got an IRS notice about crypto income. We identify the discrepancy, reconstruct the correct cost basis, and build the documentation package your CPA needs to respond.

🏦

Bankrupt Exchange Victims

Celsius, FTX, Voyager, BlockFi — we document your original cost basis, the distribution amounts received, and the resulting loss for IRS reporting purposes.

📅

Years Behind on Crypto Taxes

Never filed crypto at all? Filed incorrectly in prior years? We can go back as far as needed, reconstruct transaction history, and get you into compliance.

// What we do

Full-service crypto tax reconciliation.

We handle the transaction history, the cost basis math, the IRS forms, and the documentation — so you hand your CPA something they can actually use.

Transaction Import & Reconciliation

We pull your complete transaction history from every source — wallets, CEXs, DEXs, DeFi protocols — and reconcile it into a single clean record.

  • All major exchanges: Coinbase, Binance, Kraken, Gemini, and more
  • Hardware and software wallets via API or CSV import
  • DeFi protocols, DEXs, and cross-chain bridge transactions
  • NFT marketplace activity (OpenSea, Blur, Magic Eden)
  • Staking platforms and yield aggregators

Cost Basis Calculation

We apply the correct accounting method to your situation and document every lot. This is where most investors' IRS problems originate — and where we solve them.

  • FIFO, LIFO, HIFO, or Specific Identification
  • Wallet-to-wallet transfer tracking (non-taxable, but basis-preserving)
  • Lost or stolen asset documentation
  • Hard fork and airdrop cost basis establishment
  • Bankrupt exchange loss documentation (Celsius, FTX, Voyager)

IRS Tax Form Preparation

We produce the completed reports your CPA needs to file your return accurately. No reformatting, no guesswork — just usable documentation.

  • IRS Form 8949 — complete, lot-level capital gains & losses
  • Schedule D summary
  • Ordinary income report (staking, mining, airdrops)
  • Multi-year reports for amended returns
  • CPA-ready format — works with any tax professional

IRS Notice Response Support

We don't provide audit representation — but we build the documentation package that makes a response possible. Most crypto notices are fixable with the right records.

  • CP2000 cost basis reconstruction
  • Missing 1099 documentation
  • Exchange-issued 1099-B discrepancy analysis
  • Structured response package for your CPA or tax attorney
  • Prior-year amendment support documentation
// Platforms we work in

We work in the tools that handle
the hardest crypto tax situations.

We're not locked into one platform. We use whichever tool produces the most accurate result for your specific transaction types.

🔑
Koinly
Best-in-class for multi-chain DeFi, cross-chain bridges, and complex wallet histories. Strong automatic classification engine.
📊
CoinLedger
Excellent exchange coverage and NFT support. Strong for traders with high transaction volumes across major CEXs.
📡
CoinTracker
Solid portfolio tracking and tax reporting. Good for clients needing ongoing real-time cost basis tracking alongside annual reporting.
⚡
ZenLedger
Strong IRS form output and CPA integration. Used for clients with straightforward transaction sets needing clean, audit-ready exports.
🌿
Awaken Tax
Built specifically for DeFi-heavy users. Excellent protocol-level classification for yield farming, LP positions, and complex Ethereum interactions.
🔢
Summ
Emerging platform with strong Solana and multi-chain support. Used for clients with significant Solana ecosystem activity.
Not sure which platform your data is in? That's fine — most clients aren't. We assess what you have during the diagnostic and select the right tool for your transaction history.
// Asset & transaction coverage

If it happened on-chain,
we know how to classify it.

The IRS treats every crypto transaction as a potential taxable event — sales, trades, DeFi interactions, staking rewards, even using crypto to pay for something. We document all of it correctly.

Most crypto tax problems aren't from complex schemes. They're from wallet-to-wallet transfers treated as taxable events, staking rewards not reported as income, or missing cost basis from years of on-chain activity. We fix all three.

  • 💰
    Spot Trading & Sales
    Every sale or trade of crypto is a capital gains event. We calculate short-term vs. long-term treatment on each lot.
  • 🔁
    Wallet-to-Wallet Transfers
    Non-taxable — but they move cost basis between wallets and destroy accurate tracking if not documented correctly.
  • ⛏️
    Staking & Mining Rewards
    Taxable as ordinary income at FMV on date received, per Rev. Rul. 2023-14. Establishes cost basis for future capital gains.
  • 🌊
    DeFi: Yield Farming & LPs
    LP token deposits and withdrawals, impermanent loss, and yield farming rewards — each with its own tax treatment.
  • 🖼️
    NFT Purchases, Sales & Royalties
    Capital gains on sales, gas as part of cost basis, creator royalties as ordinary income. We document all three correctly.
  • 🪂
    Airdrops & Hard Forks
    Taxable as ordinary income at FMV on receipt. We establish cost basis for each airdrop and fork event for future gain calculations.
  • 🏦
    Bankrupt Exchange Claims
    Celsius, FTX, Voyager, BlockFi — we document original cost basis, distributions received, and net capital loss for IRS reporting.
  • 🌉
    Cross-Chain Bridges & Wraps
    WBTC, bridged ETH, and similar wrapped assets — potentially taxable depending on how the bridge is structured. We flag and classify each one.
HIGH AUDIT RISK

If you've staked, farmed, or earned yield
and haven't reported it — the IRS already has data.

Starting with the 2025 tax year, U.S. centralized exchanges are required to issue Form 1099-DA to the IRS under IRC Section 6045. The IRS also uses blockchain analytics to match on-chain activity to taxpayers. Unreported staking income (Rev. Rul. 2023-14) and missing cost basis are the two most common triggers for crypto audits. The longer you wait, the larger the potential liability.

Get a Crypto Diagnostic — $500

Know your exposure before the IRS does.

// How it works

From transaction chaos to IRS-ready reports
in three steps

01

Crypto Tax Diagnostic — $500

We audit your full transaction history across all wallets and exchanges, identify cost basis gaps, flag unreported income, and hand you a written findings report in 3–5 business days.

02

Fixed-Price Reconciliation Quote

Based on your transaction volume, years covered, and platforms involved, we quote full reconciliation at a firm fixed price. No hourly billing. You know the full cost before we start.

03

IRS-Ready Reports Delivered

We deliver completed Form 8949, Schedule D, and ordinary income reports in a format your CPA can file directly. You forward the package. Your CPA files. Done.

Start With a $500 Diagnostic → Results in 3–5 business days
$500 FLAT RATE

Crypto Tax Diagnostic

Multi-wallet chaos, DeFi activity, staking income, or an IRS notice — we audit your complete crypto transaction history and tell you exactly where you stand, in writing, before any additional work begins.

  • Full wallet and exchange transaction audit
  • Cost basis gap and discrepancy summary
  • Unreported income identification (staking, airdrops, DeFi)
  • Written findings report with severity ratings
  • Koinly, CoinLedger, CoinTracker, ZenLedger, Awaken Tax, Summ compatible
  • Turnaround: 3–5 business days
  • No ongoing commitment required
Get My Crypto Tax Diagnostic — $500

Full reconciliation quoted after diagnostic · Call 253-353-2040 with questions

// Why Bugaboo

We've been doing
crypto tax work
since 2019.

Most bookkeepers figured out crypto existed around 2021. We started reconciling multi-wallet investor records in 2019 — before most platforms had reliable import tools — which means we've seen every edge case the space produces.

We also do traditional bookkeeping, which matters: if you run a business and hold crypto, your books and your crypto records need to be coordinated. We handle both under one roof, which means nothing falls through the gap between your bookkeeper and your crypto tax preparer.

We're not a CPA firm. We don't file your return. We produce the reconciled records and IRS-ready reports that your CPA files. That division of labor keeps costs down and quality high.

Meet Our Team → Also Need Bookkeeping?
🔒

No Long-Term Contracts

Annual crypto tax projects are one-time engagements. Ongoing work is month-to-month. You're never locked in.

💡

Fixed Pricing

Full reconciliation cost is quoted after the diagnostic. No hourly billing. No scope creep. You approve the price before we start.

🛠️

6 Reconciliation Platforms

We use the right tool for your situation — not the one we happen to know. Koinly, CoinLedger, CoinTracker, ZenLedger, Awaken Tax, and Summ.

📋

CPA-Ready Output

Reports delivered in formats any CPA can use. You forward the package; they file. We also coordinate directly if your CPA prefers that.

👋

Real People, Every Time

One business day response time. Call and talk to the person actually working on your records — not a support ticket system.

☁️

Fully Remote — All 50 States

Cloud-based workflow. We work with clients nationwide. Your exchange or wallet type, not your location, is what matters.

// Client results

What crypto clients say

★★★★★

"As a new crypto investor, tax reporting felt impossible. They walked me through everything — cost basis, staking income, all of it. Their crypto expertise is exceptional."

DL
David L.
Multi-Wallet Crypto Investor
★★★★★

"I had three years of unfiled crypto sitting in Coinbase, Kraken, and multiple wallets. They reconciled everything and had my CPA ready to file within two weeks. Huge relief."

KM
Kevin M.
Crypto Investor, 3-Year Catch-Up
★★★★★

"Got a CP2000 notice and panicked. Bugaboo reconstructed my entire transaction history, found the cost basis error, and gave my CPA everything needed to respond. Handled it completely."

SR
Sarah R.
CP2000 Response, DeFi Investor
// Crypto tax questions

Straight answers on the hard stuff.

These are the questions we get most often. If your situation isn't covered here, call us at 253-353-2040 or email info@bugaboobookkeeping.com.

Book a Diagnostic →
Yes. Under IRC Section 6045, U.S. centralized exchanges are required to issue Form 1099-DA to the IRS starting with the 2025 tax year. The IRS also uses blockchain analytics tools to match on-chain activity to taxpayers. Every sale, trade, staking reward, and DeFi interaction is a potentially taxable event that should be reported on Form 8949 and Schedule D.
Yes. Per IRS Revenue Ruling 2023-14, staking rewards are taxable as ordinary income at fair market value on the date received. This applies to proof-of-stake rewards, liquidity pool yields, and most DeFi yield farming income. These rewards also establish a cost basis for future capital gains calculations when you eventually sell or trade them.
No — as of the 2024 tax year. The IRS wash sale rule (IRC Section 1091) applies to securities, and crypto is currently classified as property, not a security. Crypto investors may sell at a loss and immediately repurchase the same asset without disallowing the loss. This could change under future legislation — confirm current rules with your CPA at filing time.
We can go back as far as needed to reconstruct transaction history and produce correct tax documentation. For prior years, your CPA can file amended returns (Form 1040-X). Starting with the diagnostic helps scope the full project — multi-year, multi-wallet engagements are common and something we handle regularly.
Losses from bankrupt exchanges are treated as capital losses, but the timing depends on when the loss is considered realized — typically when claims are settled or when the exchange formally declares assets worthless. We document your original cost basis, any partial distributions received, and the resulting loss for IRS reporting. The treatment varies by exchange and year, so we handle each case individually.
A CP2000 about crypto almost always means the IRS received a 1099 showing proceeds but no matching cost basis, so it calculated the full proceeds as taxable gain. This is correctable. We reconcile your full transaction history, identify the correct cost basis, and build the documentation package your CPA needs to respond to the IRS accurately. Start with a $500 Crypto Tax Diagnostic.
No — we produce the reconciled transaction history, Form 8949, Schedule D, and ordinary income reports. Your CPA files the return. This is intentional: we focus on reconciliation, which we do very well, and your CPA focuses on the tax return, which they do very well. We coordinate directly with your CPA if helpful.
// Ready to know exactly where you stand?

Start with the diagnostic.
Know your exposure before the IRS does.

$500 flat. We audit your full crypto transaction history, identify every gap and discrepancy, and hand you a written findings report — whether you hire us for full reconciliation or not.

Get Crypto Tax Diagnostic — $500 Also Need Bookkeeping?

Questions first? Call 253-353-2040 or email us · Mon–Fri 9am–4pm PT