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 Tax Cost Basis Reconstruction & Historical Reporting
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 reconstruct complex digital asset histories, restore cost basis integrity, and realign prior-year tax filings to establish audit-ready reporting continuity.
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
Digital asset portfolios often evolve across exchanges, wallets, protocols, and tax years. Over time, transaction exports fragment, internal transfers lose continuity, allocation methodologies shift, and prior filings reflect inconsistent assumptions.
These gaps do not remain isolated. They compound.
Once reporting becomes standardized under broker-level transmission and third-party reconciliation, historical inconsistencies surface. Cost basis misalignment, duplicate disposals, broken lot continuity, and misclassified income can trigger downstream exposure.
Cost basis is not simply a number. It is a chain of continuity.
As Crypto CPAs, we perform comprehensive transaction-level reconstruction across custodial and non-custodial environments.
Where prior filings lack structural integrity, we realign reporting architecture to current IRS standards while preserving defensibility.
Once cost basis continuity is restored, we design forward-facing reporting architecture to prevent recurrence. This includes consistent allocation methodology, documented treatment of complex DeFi and token transactions, and year-over-year reporting alignment, including Form 1099-DA.
Since 2016, Camuso CPA has advised high-net-worth investors, traders, founders, and digital asset operators through multiple market cycles. We specialize in historical accounting reconstruction for portfolios that exceed the capacity of consumer software or generalist firms.
Recognized as Forbes Best-In-State Top CPA for Leadership in Crypto Accounting
Camuso CPA is recognized as a Forbes Best-In-State Top CPA, reflecting national recognition for leadership at the intersection of cryptocurrency taxation, digital asset accounting, and on-chain compliance.
Founded in 2016, our firm was built specifically for complex digital asset portfolios at a time when few accounting practices were equipped to handle on-chain activity, multi-wallet environments, or cost basis reconstruction. Since then, we have advised high-net-worth investors, Web3 founders, traders, and digital asset operators through multiple market cycles and evolving regulatory frameworks.
This recognition reflects sustained technical depth in areas that now define the Digital Asset Compliance Era, including historical accounting reconstruction, wallet-level reconciliation, 1099-DA alignment, and structurally defensible cryptocurrency tax reporting.
Fix My Crypto Cost Basis
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.
- High-Net-Worth Individuals & Multi-Wallet Investors
- High-volume traders and DeFi participants.
- Web3 Startups, Protocols & Token Projects
- Founders and executives receiving token compensation.
- Prediction Market Traders
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.
Crypto Tax Planning & Strategy
Forward-looking planning across token events, liquidity events, staking income, capital gains timing, entity structuring, and cross-border considerations. Built to minimize liabilities while preserving reporting integrity.
Explore Crypto Tax Strategy Services →
Cryptocurrency Accounting & Historical Cost Basis Reconstruction
Institutional-grade wallet reconciliation and cost basis reconstruction across exchanges, DeFi protocols, NFTs, and multi-chain portfolios. We restore transaction-level continuity and build defensible accounting architecture aligned with current IRS guidance.
Fix Inaccurate Crypto Reports →
Crypto Tax Reporting & Compliance
Accurate federal and multi-state cryptocurrency tax filings, including 1099-DA reconciliation and reporting under Rev. Proc. 2024-28. Designed for high-volume traders, multi-entity structures, and materially significant digital asset activity.
File Your Crypto Taxes with Confidence ->
Crypto Tax Resolution & IRS Representation
Remediation of unfiled years, audit defense, penalty negotiation, and structured resolution strategies for digital asset-related IRS exposure. We restore compliance and reduce long-term risk.
Fix Crypto Back Taxes & Unfiled Returns ->
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.
Align My Return With 1099-DA Reporting
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.
What makes 1099-DA compliance different from normal crypto tax prep?
You may need reconstruction if:
Your reported gains fluctuate dramatically year-to-year without clear reason
Software reports change when re-run
You’ve received an IRS letter
You’ve switched platforms mid-year
You suspect transfers were misclassified
Software is a calculation engine, not an accounting judgment engine. If the underlying data is incomplete or misclassified, the output will be incorrect. We audit and override software outputs where necessary to restore structural accuracy.
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 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.
