Case Study
Current Year Crypto Tax Filing with Historical Reconstruction, Prior Year Corrections, and 1099-DA Reconciliation
The Problem
Client engaged Camuso CPA for current year crypto tax filing. During the intake process, cost basis records were found to be incomplete across multiple wallets and exchanges spanning several prior years. Prior returns had been filed using software-generated reports that misclassified internal transfers, applied inconsistent cost basis methodology, and missed entire wallets. When 1099-DA forms arrived for the current year, broker-reported proceeds could not be reconciled against the client's existing records, making it impossible to file an accurate current year return without first rebuilding the historical foundation.
What We Did
Reconstructed the complete transaction history at the tax-lot level across all exchanges, wallets, and on-chain activity to establish continuous cost basis records. Identified material errors in prior year filings and filed corrected returns with supporting documentation. With accurate historical records in place, reconciled all broker-issued 1099-DA data against the rebuilt cost basis, documented discrepancies, and prepared the current year return on a consistent, defensible methodology aligned with the reconstructed history.
The Outcome
Current year return filed accurately with 1099-DA data fully reconciled against rebuilt cost basis records. Prior year errors corrected with audit-ready documentation. Client moved from years of inaccurate, undefendable filings to a clean compliance position with continuous cost basis continuity and a methodology that holds up to IRS scrutiny going forward.
