Very happy working with Patrick. He’s the real deal when it comes to crypto tax and accounting. Highly recommend him if you want clarity and confidence in your reporting.
- Crypto-Native Since 2016. Built for the Digital Asset Compliance Era.
Form 1099-DA Compliance & Reconciliation Services
Recognized by Forbes as a 2025 Best-in-State Top CPA
Featured in Forbes for Leading the Charge on Crypto Accounting: Read the Forbes Feature
We reconcile your 1099-DA data against your reconstructed transaction history and produce tax filings that hold up when the IRS runs its matching process.
Nationally Recognized Crypto CPA Since 2016 and the first CPA firm in the U.S. to accept cryptocurrency for professional services.
1099-DA Reconciliation & IRS-Defensible Crypto Reporting
Form 1099-DA marks a structural change in digital asset reporting. Beginning in 2025, broker-level transaction data will be transmitted directly to the IRS. That data will not exist in isolation. It will be evaluated against your filed returns, prior-year reporting positions, and cost basis records.
For investors and operators with multi-wallet, multi-platform exposure, the risk is not limited to past gaps. It is structural misalignment.
We approach 1099-DA compliance as both a reconciliation engagement and a tax reporting engagement.
First, we analyze broker-issued 1099-DA data and reconcile it against wallet-level and exchange-level records. We repair cost basis continuity where necessary and evaluate prior methodologies for structural defensibility.
Then, we implement forward-facing reporting systems designed to maintain alignment across years. This includes consistent allocation methodology, documented position analysis for complex transactions, and ongoing monitoring to ensure that future filings reconcile to broker data as reporting standards evolve.
In this environment, your return, broker data, and cost basis records must converge year after year. As crypto CPAs, we ensure they do.
For a complete breakdown of how 1099-DA works and what it means for your filing, read our guide: Form 1099-DA 2025: What Crypto Investors Must Know Before Filing
Our 1099-DA Compliance Process: From Initial Review to IRS-Defensible Filing
Step 1: Portfolio Assessment & Exposure Review
This assessment identifies historical reporting gaps, cost basis discontinuities, and potential exposure under current IRS guidance. Engagement scope and methodology are defined at this stage.
Step 2: Historical Accounting & Cost Basis Reconstruction
Transaction-level reconciliation is performed across custodial and non-custodial environments. We restore continuity across tax years, normalize internal transfers, and realign allocation methodologies to current standards. Where necessary, prior reporting positions are evaluated and corrected.
Step 3: Compliance Execution & Reporting Alignment
With accounting integrity established, we prepare federal and multi-state cryptocurrency tax filings and formally reconcile reporting against third-party data, including Form 1099-DA. Documentation is structured for defensibility under audit review.
Step 4: Ongoing Tax Strategy & Structural Optimization
Forward-looking advisory addresses capital positioning, entity elections, liquidity timing, multi-jurisdiction exposure, and complex transaction analysis across DeFi, NFTs, staking, token compensation, and related structures.
Who We Help: Crypto Investors, Founders & Web3 Builders
From early Bitcoin adoption through today’s multi-chain digital asset ecosystem, we have advised investors and operators whose crypto exposure is financially material.
Our clients are not experimenting with digital assets. They are allocating capital, operating entities, issuing tokens, and managing portfolios that require historical accounting integrity, cost basis continuity, and defensible tax architecture.
Align My Return With 1099-DA Reporting
Cryptocurrency CPA Services for Digital Asset Investors, Traders & Web3 Founders
Crypto Tax Cost Basis Reconstruction & Historical Reporting
We reconstruct complex digital asset histories, restore cost basis integrity, and realign prior-year tax filings to establish audit-ready reporting continuity. Read our tax guide:
Cryptocurrency Portfolio Accounting
We offer expert cryptocurrency accounting services for high-net-worth investors, prediction market traders, and DeFi users seeking IRS-compliant reporting and complete tax clarity. Get your books in order, minimize your tax bill, and protect your digital wealth.
Crypto Tax Filing & Compliance
We specialize in crypto tax filings for high-net-worth investors, digital asset traders, and Web3 startups with complex activity. We deliver clean, compliant returns that reduce risk and stand up to IRS scrutiny.
Crypto Tax Strategy & Planning
Proactive, high-impact tax planning for crypto investors and Web3 founders. From token events to multi-chain portfolios, we help minimize liabilities, defer gains, and build long-term wealth across every market cycle.
Web3 Startup & Blockchain Accounting
We provide end-to-end crypto accounting that integrates on-chain sub-ledgers with your general ledger, ensuring complete, auditable books investors trust. Whether you're a Web3 startup,
Crypto Tax Resolution & IRS Representation
Facing IRS letters, back taxes, or unfiled crypto returns? We help investors, traders, and Web3 founders resolve crypto-related tax issues with speed and confidence. From late filings to audit defense and penalty reduction, we clean up your situation and get you back in compliance.
Prediction Market Tax Reporting
Specialized U.S. tax reporting and accounting for prediction market traders, including Polymarket, Kalshi, USD-settled and crypto-settled contracts. Read our tax guide:
Prediction Market Taxes Explained: Why U.S. Tax Characterization Remains Unsettled
Web3 Sales Tax Compliance
We’re industry leaders in crypto sales tax, we wrote the book. Our team helps Web3 startups and NFT platforms manage multi-state and multi-jurisdiction sales tax obligations tied to token sales, marketplace revenue, and digital goods.
What Investors & Founders Are Saying About Our Cryptocurrency CPA Firm
Real Results from Our Cryptocurrency CPA Clients
Results
Total Tax Savings:
$ 275,000 +
Total Time Savings:
Saved $275,000+ in IRS Liabilities with Strategic Tax Resolution and Clean-Up
Chad
A high-volume DeFi investor came to us after receiving an IRS 6174-A notice and years of unfiled crypto activity. Before reaching out to our firm to resolve their crypto tax issues, they had tried using three crypto tax software platforms and hired two other accounting firms, none of which produced accurate results. We reconstructed their entire crypto tax history, cleaned up seven years of accounting, and successfully negotiated an Offer in Compromise with the IRS.
Results
Total Tax Savings:
$ 500,000 +
Total Tax Deferral:
Recovered Millions in Overstated Gains and Built an Accurate Crypto Tax System from 2016–Present
Paul
Jonathan, a high-net-worth crypto investor active since 2016, came to us after multiple failed attempts with top crypto tax software and two CPA firms. Their reports overstated his gains by millions, misclassified transactions, and ignored 30+ wallets, 15+ exchanges, margin trades, DeFi activity, and NFTs across 10+ chains. He also received inaccurate 1099s with no cost basis tracking.
Our team rebuilt his accounting system from the ground up, accurately reconciling every transaction from 2016 to the present. We corrected misreported 1099s, cleaned up his books, and implemented an ongoing crypto-native tax strategy. By identifying loss harvesting opportunities and creating accurate filings, we saved Jonathan substantial money and ensured IRS compliance.
Results
Total Tax Savings:
$ 300,000+
Total Time Savings:
20 Hours+
Saved $300,000+ in Future Liabilities by Structuring a Compliant Token Launch
Jonathan
A Web3 startup came to us during a critical phase, raising funds through a SAFT and preparing for their Token Generation Event (TGE). We delivered a full tax plan that restructured their token allocations, reduced their future tax liabilities by over $300,000, and avoided major compliance risks.
We also implemented a crypto-native accounting system with integrated sub-ledgers and automation, saving the team 20+ hours weekly in manual accounting. Our ongoing support as their Web3 CFO continues to keep their books investor-ready and their strategy compliant.
Results
Total Tax Savings:
$ 2.4 Million
Total Time Savings:
Optimized Bitcoin Mining Operations to Save $2.4M Through Depreciation Strategy & Accounting Overhaul
William
Paul, the managing partner of a successful Bitcoin mining company, sought our firm’s assistance for tax planning. Our collaborative efforts led to significant tax-saving strategies for his business. Furthermore, our guidance allowed Paul to gain clarity on accelerating depreciation schedules for purchased equipment and assets. Moreover, our firm aided Paul in setting up and updating his accounting system to ensure accurate records for past transactions. This enhancement provided comprehensive financial visibility and facilitated precise tax planning and compliance strategies.
Align My Return With 1099-DA Reporting
Form 1099-DA FAQ
What is Form 1099-DA?
Form 1099-DA is a new IRS information return that digital asset brokers must file beginning in 2025. It reports transaction-level digital asset activity directly to the IRS, including proceeds and certain identifying data tied to your account.
This creates a formal third-party reporting framework similar to 1099-B for securities.
How will 1099-DA impact my crypto taxes?
Your filed tax return will now be evaluated against broker-reported transaction data. If proceeds, basis, or transaction totals do not align, the IRS may issue mismatch notices or initiate further review.
Does 1099-DA determine my tax liability?
No.
Broker reporting reflects what the platform transmits. It does not automatically determine:
Tax character (capital vs. ordinary)
Proper lot identification
Treatment of internal transfers
DeFi classification
Entity-level attribution
What happens if my filed return does not match my 1099-DA?
Potential consequences may include:
CP2000 mismatch notices
IRS correspondence audits
Requests for substantiation of cost basis methodology
Penalty exposure if discrepancies are not documented
Proactive reconciliation significantly reduces that risk.
I have multiple wallets and exchanges. Will 1099-DA reflect everything?
No.
1099-DA only reflects activity reported by specific brokers. It does not capture:
Self-custodied wallet activity
On-chain DeFi transactions
Cross-platform transfers in full context
Certain staking or token events
Your return must integrate broker data with complete portfolio records.
Do I need to fix prior years before 1099-DA begins?
In many cases, yes.
If historical cost basis continuity is broken, forward reporting will compound errors. 1099-DA reporting makes basis carryover more visible across years.
Addressing prior gaps now can prevent future mismatch exposure.
How do you approach 1099-DA reconciliation?
We treat 1099-DA compliance as both:
A reconciliation engagement
A tax reporting engagement
We:
Compare broker-issued 1099-DA data against wallet-level and exchange-level records
Repair cost basis continuity
Evaluate lot identification methodology
Align filed returns with third-party reporting
Implement forward reporting controls
The objective is long-term structural alignment.
Does 1099-DA apply to DeFi and staking?
Broker reporting may not fully capture DeFi or staking activity. However, those transactions still affect:
Basis
Income recognition
Carryover calculations
Future broker matching
Your reporting must integrate on-chain activity with broker data.
Is 1099-DA only relevant to large investors?
No. 1099-DA applies to any investor with reportable digital asset activity through a covered broker, regardless of portfolio size. The reconciliation challenge is determined by complexity, not just volume.
What makes 1099-DA compliance different from normal crypto tax prep?
Prior to 1099-DA, the IRS had limited visibility into crypto activity. Investors self-reported and the burden of proof rarely materialized. That changed in 2025. Brokers now transmit gross proceeds directly to the IRS, creating an automated matching system similar to what exists for stock sales.
The difference is that 1099-DA reports proceeds only, not cost basis. When your reported gains don't align with what the IRS received from your broker, the mismatch triggers automated discrepancy analysis. The IRS doesn't resolve that mismatch on your behalf. It assumes the worst until you substantiate otherwise.
This means 1099-DA compliance is not standard tax prep with an extra form. It requires reconciling your full transaction history against broker-reported data, documenting your cost basis methodology, and producing filings where every number can be traced and defended.
