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.
Crypto Cost Basis Reconstruction for Investors With Complex Portfolios
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
Broken crypto cost basis creates audit exposure. We reconstruct your full transaction history and make it defensible.
Nationally Recognized Crypto CPA Since 2016 and the first CPA firm in the U.S. to accept cryptocurrency for professional services.
Why Crypto Cost Basis Breaks and What It Takes to Fix It
Most crypto portfolios accumulate years of fragmented data with transactions split across exchanges, wallets, and protocols with no clean continuity between them. Software can’t fix this. It calculates what it’s given. When the underlying data is incomplete, the output is wrong and requires crypto cost basis reconstruction.
Under 1099-DA, the IRS now has broker-reported proceeds. When those proceeds don’t align with a defensible cost basis, the mismatch creates enforcement exposure.
Cost basis is a chain of continuity and when that chain breaks, it has to be rebuilt from the transaction level up.
We reconstruct that history, correct prior filing positions where necessary, and build a forward-facing reporting architecture that holds under audit.
That process requires a reliable Crypto CPA with technical judgment, consistent methodology, and documentation that can withstand IRS scrutiny.
For a deeper breakdown of why cost basis goes missing and what fixing it actually requires, read our guide: Crypto Cost Basis Reconstruction & Historical Accounting.
Our Cryptocurrency Accounting Process: From Onboarding to Ongoing Tax Strategy
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.
Fix My Crypto Cost Basis
Related Services Services for Digital Asset Investors, Traders & Web3 Operators
We provide end-to-end cryptocurrency accounting, tax reporting, and advisory services built for complex digital asset exposure.
Form 1099-DA Compliance & Reconciliation Services
We reconcile third-party 1099-DA data with reconstructed cost basis records to prevent mismatches, restore reporting continuity, and prepare defensible crypto tax filings. 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. From DeFi, staking, and multi-wallet portfolios to token raises and DAO operations—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, DAO, foundation or digital asset fund, our crypto-native team delivers timely, GAAP-aligned reporting to support capital raises, regulatory compliance, and smarter business decisions.
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:
$ 750,000 +
Total Time Savings:
Rebuilt Accounting for Crypto Fund with 50M–100M Trades Per Year
William
A crypto fund executing between 50 and 100 million transactions annually required a full accounting overhaul. We retroactively cleaned up three years of high-volume data, designed a crypto-native sub-ledger system, and delivered audit-ready financials. Our scalable architecture supports real-time trade tracking, institutional compliance, and long-term fund operations.
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.
Every Year You Wait, the Gap Gets Harder to Close.
Crypto Cost Basis FAQ
What is crypto cost basis reconstruction?
Crypto cost basis reconstruction is the process of rebuilding your transaction history across wallets and exchanges to accurately determine gains, losses, and holding periods. This includes correcting internal transfers, missing data, duplicated income, and prior reporting inconsistencies.
Why is my crypto cost basis wrong?
Common causes include:
Wallet-to-wallet transfers treated as taxable sales
Missing exchange history
DeFi transactions misclassified
Staking rewards double-counted
Software defaults (FIFO vs Specific ID) applied inconsistently
Prior CPAs unfamiliar with on-chain mechanics
Even small classification errors can compound across years.
Can you fix prior-year crypto tax filings?
Yes. We evaluate prior filings, identify structural issues, and determine whether amended returns, method corrections, or forward realignment strategies are appropriate.
Not every error requires amendment. The solution depends on materiality and risk.
I’m missing exchange data. Can my history still be reconstructed?
In most cases, yes. We use wallet-level blockchain data, historical pricing records, API archives, and exchange exports where available to rebuild continuity. Even when data is incomplete, defensible reconstruction methodologies can often be applied.
Do wallet transfers create taxable events?
No. Transfers between wallets you control are not taxable. However, they are frequently misreported as sales if transaction history is not properly normalized. Correcting transfer treatment is a core part of cost basis repair.
How many years back can crypto reporting be corrected?
That depends on your filing history and risk exposure. In many cases, we review multiple tax years to restore continuity, especially where basis carryovers affect current-year gains.
Will this help reduce audit risk?
Yes, but the goal is structural accuracy, not cosmetic adjustments. When transaction history, cost basis continuity, and reporting methodology align, audit exposure decreases materially.
Is cost basis reconstruction only for high-volume traders?
No. It is relevant for anyone with:
Multiple wallets
Exchange transfers
DeFi activity
NFT transactions
Staking income
Token compensation
Complexity, not just volume, drives the need.
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 cost basis reconstruction is no longer optional cleanup. It is the foundation of any defensible 2025 filing. Without a documented, methodology-consistent basis position that aligns with broker-reported proceeds at the account level, your return is structurally exposed regardless of whether your numbers are accurate.
