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Upload your 1099-DA and exchange records. A licensed CPA will review your crypto tax documents line-by-line and identify discrepancies, missing cost basis, and potential issues, all at no cost.

Line-by-line 1099-DA review to catch errors your exchange missed
Missing cost basis identification so the IRS doesn't treat all proceeds as gain
AUR mismatch risk check so you know your exposure before you file
Cost basis method comparison (FIFO vs. Specific ID with HIFO lot selection) with recommendations
Personalized action plan in 3 to 5 business days, written in plain English
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Tax filing deadline: April 15, 2026. Start now to allow time for reconciliation.

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Reviewed by Gregory Monaco, CPA, MBALast updated: February 21, 2026

Why Your 1099-DA Needs a CPA Review

For the 2025 tax year, exchanges are issuing Form 1099-DA for the first time, and the form has serious limitations. Under Treasury Decision 10000, brokers like Coinbase, Kraken, and Robinhood are reporting gross proceeds but are not required to report cost basis for most assets (per IRS Instructions for Form 1099-DA, 2025). For many crypto investors, every line of their 1099-DA shows “$0 cost basis” or “Unknown.”

Without reported cost basis, the IRS may treat your entire proceeds as taxable gain. This means 100% of your reported proceeds could appear to be gain, even if your actual gain was a fraction of that amount.

Here’s a real-world example: Say you bought $10,000 of Bitcoin on Coinbase, transferred it to Kraken, and later sold it for $12,000 on Kraken. Your Kraken 1099-DA would show $12,000 in proceeds and $0 cost basis, making it look like you owe taxes on $12,000 in gains instead of the actual $2,000. Without reconciliation, you could overpay by thousands of dollars.

On top of that, starting in 2025 the IRS requires cost basis to be tracked at the wallet and account level (per Rev. Proc. 2024-28), eliminating the previous universal pooling method. The safe harbor deadline for taxpayers to allocate their existing holdings across wallets was January 1, 2025 — if you missed it, you may need to use the IRS’s default allocation rules. This means transferring crypto between wallets can create additional cost basis complexity that your 1099-DA simply doesn’t reflect.

If you transferred crypto between exchanges or wallets (which most active traders do), your 1099-DA likely shows “Unknown” cost basis. Without reconciliation, you could overpay tens of thousands of dollars in taxes on gains you never actually realized.

Beyond the immediate tax impact, a discrepancy between what your exchange reported and what you file creates a high-risk mismatch in the IRS’s Automated Underreporter (AUR) system, the same system that generates CP2000 notices. A proper CPA review now can prevent a far more stressful (and expensive) situation when CP2000 notices typically arrive 12 to 18 months after filing.

Learn more about our crypto tax services or read our guide on NJ crypto tax planning.

Common 1099-DA Issues We Find

These are the most common issues we see in 1099-DA reviews.

Missing Cost Basis

You bought crypto on one exchange, transferred it to another, then sold. The selling exchange doesn't know your original purchase price, so your 1099-DA shows $0 cost basis, making it look like 100% of your proceeds are taxable gain.

Transfer Misclassification

Your exchange reported a transfer to your own wallet as a "sale," creating a phantom taxable event. This is surprisingly common and can generate a tax bill on income you never actually received.

Stablecoin Confusion

Some brokers, including Coinbase, use aggregate reporting for certain stablecoin conversions rather than reporting each individual transaction. You might see $50,000+ in "proceeds" for USDC trades that had essentially zero gain. Without proper reconciliation and Form 8949 adjustment codes, this looks like massive unreported income to the IRS.

Duplicate Reporting

The same transaction shows up on two different 1099-DAs from two different brokers. This can happen with inter-exchange transfers and leads to the IRS thinking you had double the actual proceeds.

DeFi & On-Chain Activity

Trades on Uniswap, staking on Lido, lending on Aave. None of this appears on any 1099-DA, but much of this activity may be taxable and should be evaluated for reporting on your return with the correct cost basis.

Timing Mismatches

A transaction near midnight on December 31 can fall in different tax years depending on whether your exchange uses UTC or your local timezone. This can cause discrepancies between your 1099-DA and your records.

Basis Method Divergence

Your exchange used FIFO by default, but Specific Identification with HIFO (highest-in, first-out) lot selection could save you significantly more in taxes. The right cost basis method can make a real difference in what you owe.

Proceeds Discrepancies

Your exchange CSV shows different numbers than your 1099-DA for the same transactions. This is common in the first year of 1099-DA reporting and requires proper adjustment codes on Form 8949.

Exchange-Specific 1099-DA Issues

Each exchange handles 1099-DA reporting differently. Here’s what we see.

Coinbase

Uses aggregate reporting for stablecoin conversions, so inflated proceeds are common. Extended 1099-DA delivery to March 17, 2026. Check your Tax Center for forms.

Kraken

Typically reports individual transactions. Cost basis is rarely included for transferred-in assets. Download your full transaction history CSV for best review results.

Robinhood

Reports crypto alongside stock trades. Make sure your 1099-DA is separate from your 1099-B consolidated statement. Transfers in and out may show $0 basis.

Gemini

Generally provides cleaner 1099-DA data, but cost basis is still missing for assets transferred from external wallets. Export your transaction history as CSV.

Cash App

Only reports Bitcoin transactions. If you also trade stocks through Cash App, your crypto 1099-DA will be separate from your 1099-B. Check your tax documents section in the app.

Crypto.com

Issues 1099-DA for all supported crypto. Their export formats can be tricky to parse. Download both your 1099-DA PDF and your full transaction history CSV for the best review.

PayPal / Venmo

Both now issue 1099-DA for crypto sold through their platforms. The forms are under your PayPal or Venmo tax documents, not your bank statements.

Don’t see your exchange? Submit your documents — we review 1099-DAs from all exchanges and brokers.

What You'll Receive

Every free review includes the following, delivered by email within 3 to 5 business days.

Line-by-line comparison of your 1099-DA against your actual transaction history
Identification of missing cost basis and how to reconstruct it
Cost basis method comparison (FIFO vs. Specific ID with HIFO lot selection) and recommendation for your situation
Flag any discrepancies between your 1099-DA and exchange records
AUR mismatch and CP2000 notice risk assessment based on your specific situation
Plain-English summary of your crypto tax situation with state-specific notes for your state of residence
FBAR and FATCA filing flags if you used any foreign exchanges
Recommendation on whether you need professional tax preparation or can file on your own

Cost basis method comparison included

Your review includes a side-by-side comparison of how different cost basis methods (FIFO vs. Specific Identification with HIFO lot selection) affect your tax liability. Note: HIFO (highest-in, first-out) is a lot selection strategy within Specific Identification, not a separate IRS-recognized method. Under IRS Notice 2025-7, taxpayers who used Specific ID methods before 2025 have transitional relief for the new wallet-level tracking rules. We’ll recommend the most beneficial approach for your specific situation.

Why a CPA review instead of tax software?

Tax software like TurboTax or CoinTracker can import your 1099-DA, but it typically can’t reconstruct missing cost basis from cross-exchange transfers, identify stablecoin reporting anomalies, or assess your CP2000 risk. A CPA review catches what software misses.

How It Works

Upload

Submit your 1099-DA and exchange records through our secure form. All files are transmitted over 256-bit TLS encryption.

Review

Greg Monaco, CPA reviews your documents line-by-line within 3 to 5 business days, checking for missing basis, discrepancies, and reporting issues.

Results

Receive a clear summary of findings, issues identified, and recommended next steps, delivered directly to your inbox in plain English.

Haven’t received your 1099-DA yet? Many exchanges are delivering forms through March 17, 2026. Submit what you have now (transaction history, prior year records) and we’ll follow up when your 1099-DA arrives.

Frequently Asked Questions

What is Form 1099-DA?
Form 1099-DA is an IRS tax form that cryptocurrency exchanges and brokers started issuing in early 2026 for the 2025 tax year. It reports the gross proceeds from your digital asset transactions, similar to how Form 1099-B reports stock sales. The form was created under Treasury Decision 10000 (TD 10000), which established broker reporting requirements for crypto transactions starting January 1, 2025. Exchanges like Coinbase, Kraken, Gemini, and Robinhood are required to file 1099-DA for customers who sold, traded, or disposed of digital assets during the year.
Why does my 1099-DA show $0 or "Unknown" cost basis?
For the 2025 tax year, brokers are required to report gross proceeds but are not required to report cost basis for most crypto assets (per IRS Instructions for Form 1099-DA, 2025). Some brokers may voluntarily report basis for certain transactions, but most won't. Worth noting: brokers who voluntarily report basis face no penalties for reporting it incorrectly, so even when basis is shown on your 1099-DA, it may not be reliable. Cost basis reporting becomes mandatory starting in 2026, and only for "covered securities," meaning digital assets acquired on or after January 1, 2026 that have been held continuously in the same custodial account and were not transferred in. If you bought crypto before 2026, or transferred it between wallets or exchanges at any point, the broker can't report your cost basis. This is the single most common issue we see.
What happens if I don't reconcile my 1099-DA?
The IRS receives a copy of every 1099-DA filed by your exchange. Their Automated Underreporter (AUR) system compares 1099-DA proceeds against what you report on your tax return. If there's a discrepancy, or if the IRS sees reported proceeds with no corresponding entry on your return, you could receive a CP2000 notice proposing additional tax. Without proper reconciliation and adjustment codes on Form 8949, you may end up overpaying taxes on gains you never actually realized, or facing penalties for underreporting.
What is a CP2000 notice?
A CP2000 is an IRS notice proposing changes to your tax return based on income reported by third parties (like your crypto exchange) that doesn't match what you filed. It's not an audit. It's an automated matching discrepancy. For crypto, CP2000 notices typically come up when 1099-DA proceeds aren't properly reconciled with your Form 8949. You generally have 30 days to respond. If you had a proper reconciliation done at filing time, responding is straightforward. If you didn't, it means reconstructing your cost basis after the fact, which is significantly harder and more expensive.
Do I need to report crypto even if my exchange sent a 1099-DA?
Yes. The 1099-DA reports what your exchange knows about your transactions, but it's your responsibility to file a complete and accurate return. This includes reporting the correct cost basis (which the exchange may not have), any DeFi or on-chain activity not covered by 1099-DA, crypto-to-crypto trades on exchanges that didn't issue 1099-DAs, staking rewards, airdrops, and mining income. The 1099-DA is a starting point, not a complete picture of your crypto tax obligations.
Is this really free? What's the catch?
Yes, it's genuinely free. No credit card required, no hidden upsell page, and no obligation. Greg Monaco, CPA is building reconciliation tools for the new 1099-DA reporting requirements and needs real-world data to test against. In exchange for letting us use your anonymized transaction data (with all personal information removed) to improve our tools, you get a thorough CPA review at no cost. You'll receive your review findings via email within 3 to 5 business days. If you need formal tax preparation after the review, we can discuss engagement options, but there's zero pressure. This review does not create a CPA-client relationship.
Who reviews my documents?
Gregory Monaco, CPA, MBA, founder and sole practitioner of Gregory Monaco, CPA LLC (doing business as Monaco CPA). Licensed in New Jersey (CPA License #20CC04711400), member of AICPA and NJSCPA. Greg specializes in cryptocurrency taxation, DeFi tax compliance, and IRS reporting for digital assets. He handles every review personally. There is no junior staff or outsourcing. He has been quoted in Yahoo Finance, Nasdaq, GOBankingRates, and BeInCrypto as a cryptocurrency tax expert.
Is my data secure?
Your documents are transmitted over 256-bit TLS/SSL encrypted connections, the same encryption used by banks. Only Greg Monaco, CPA has access to your uploaded files. They are never shared with third parties or accessed by anyone else. Files are stored on US-based servers and deleted within 60 days of your review being completed. Your anonymized transaction patterns (with all personally identifiable information removed) may be used to improve our reconciliation tools only if you provide separate consent via the intake form. See our Privacy Policy for full details.
What documents should I upload?
At minimum, upload your 1099-DA PDF from each exchange you used. For the best review, also upload your full transaction history CSV or XLSX export from each exchange. If you used DeFi protocols, include any records you have of those transactions. If you used crypto tax software in prior years (Koinly, CoinTracker, CoinLedger, TokenTax, or ZenLedger), uploading your prior-year export helps us verify that your 2025 cost basis starting point is correct. If you have your prior year's Form 8949 or Schedule D, that's helpful too. The more data you provide, the more complete our review will be.
What exchanges issue Form 1099-DA?
For the 2025 tax year, major exchanges including Coinbase, Kraken, Gemini, Robinhood, Cash App, Crypto.com, PayPal, Venmo, and eToro are issuing Form 1099-DA. The IRS deadline for brokers to furnish 1099-DA statements was February 17, 2026, but some exchanges (including Coinbase) extended delivery through March 17, 2026. The IRS has provided good-faith penalty relief for 2025 reporting under Notice 2024-56, which is one reason some exchanges are taking additional time to ensure accuracy. If you haven't received yours yet, check your exchange account's tax documents section. DeFi platforms and decentralized exchanges do not issue 1099-DAs. The DeFi broker reporting rule (T.D. 10021) was repealed via Congressional Review Act resolution (H.J.Res. 25 / Public Law 119-5) in April 2025.
How long does the review take?
You'll receive your review findings via email within 3 to 5 business days of submitting your documents. The review includes a line-by-line analysis of your 1099-DA, identification of any issues, and personalized recommendations, all written in plain English. During peak tax season (March through April), reviews may take slightly longer.
What if I used multiple exchanges?
Upload 1099-DAs and transaction records from all exchanges you used. We reconcile across all platforms to give you a complete picture. This is especially important if you transferred crypto between exchanges, since cross-exchange transfers are the number one cause of missing cost basis on 1099-DAs.
What if I have transactions from previous years too?
If you have unresolved crypto tax issues from 2024 or earlier, mention that in the form. Our free review focuses on your 2025 1099-DA, but if we identify issues that span multiple years (like missing cost basis from older purchases), we'll flag them in your review and discuss options for addressing prior years. If you used crypto tax software in prior years (Koinly, CoinTracker, CoinLedger, TokenTax, or ZenLedger), uploading your prior-year export helps us verify that your 2025 cost basis starting point is correct. This is especially important given the Rev. Proc. 2024-28 transition from universal pooling to wallet-by-wallet tracking.
When will I receive my 1099-DA from my exchange?
The IRS required brokers to furnish 1099-DA statements by February 17, 2026. However, several major exchanges, including Coinbase, have stated they will deliver forms by March 17, 2026. Check your exchange account under 'Tax Documents' or 'Tax Center.' If you haven't received yours yet, you can still submit what you have now (transaction history CSVs, prior year records) and we'll follow up when your 1099-DA arrives.
What if my 1099-DA has errors?
1099-DA errors are common in this first year of reporting. Common issues include incorrect proceeds amounts, duplicate transactions, missing transactions, and wrong dates. If you spot errors, you should request a corrected 1099-DA from your exchange. In the meantime, you should still file your return using your own accurate records and attach a Form 8949 with proper adjustment codes (per IRS Instructions for Form 8949). Our review will identify potential errors and explain how to handle them on your return.
Do I need to file an amended return if my 1099-DA was wrong?
It depends on whether you already filed and whether the error affects your reported income. If you haven't filed yet, simply use the corrected information on your original return with appropriate adjustment codes on Form 8949. If you already filed and the error is material (changes your tax liability), you may need to file an amended return (Form 1040-X). Our review can help you determine whether an amendment is necessary and what adjustment codes to use.
What is Form 8949 and how does it relate to my 1099-DA?
Form 8949 is the IRS form where you report the details of each capital asset sale or exchange, including crypto. For 2025 crypto transactions, Form 8949 uses six specific checkbox categories (Boxes G through L) that determine how the IRS processes your reported transactions. Choosing the correct box matters. For example, Box H (short-term, basis not reported) vs. Box K (long-term, basis not reported) affects how the IRS matches your filing against your 1099-DA. When your 1099-DA shows proceeds but missing or incorrect cost basis, you report the correct figures on Form 8949 with adjustment codes like Code B for 'basis not reported to IRS.' This is how you prevent the IRS from treating your entire proceeds as taxable gain. Proper Form 8949 preparation is a key part of our 1099-DA review.
Can I use tax software like TurboTax with my 1099-DA?
You can, but with some important caveats. Tax software can import 1099-DA data, but it typically can't reconstruct missing cost basis from transfers between exchanges, identify stablecoin reporting anomalies, or handle complex DeFi activity. If your crypto activity was limited to simple buy-and-sell on a single exchange with no transfers, tax software may be sufficient. For anything more complex (and most active crypto users fall into this category), a professional review catches what software misses and helps prevent CP2000 notices.
Why are some of my transactions missing from my 1099-DA?
Several categories of transactions are temporarily excluded from 1099-DA reporting. Under IRS Notice 2024-57, brokers are not required to report wrapping and unwrapping tokens, certain lending transactions, liquidity pool (LP) transactions, staking transactions, short sales, and notional principal contracts. Separately, the IRS Instructions for Form 1099-DA provide de minimis thresholds: stablecoin sales totaling $10,000 or less per year and specified NFT sales under $600 per year are excluded from reporting. If you see activity in your exchange records that doesn't appear on your 1099-DA, it may be correctly excluded under these rules — but the underlying transactions may still be taxable and reportable on your return. Our review will help you figure out whether missing transactions are properly excluded or need to be reported separately.
Do wash sale rules apply to cryptocurrency?
Under current law, the wash sale rules under Section 1091 do not apply to standard cryptocurrencies like Bitcoin or Ethereum. This means you can sell crypto at a loss and immediately repurchase it without losing the tax deduction. However, wash sale rules do apply to digital assets that are also considered securities, such as tokenized stocks or certain debt instruments. There's a lot of misinformation about this online. Our review will flag any situations where wash sale rules might apply to your specific transactions.
What if I used a foreign exchange like Binance or KuCoin?
If you held digital assets on foreign exchanges and the total value of all your foreign financial accounts exceeded $10,000 at any point during the year, you have a separate filing obligation under the Bank Secrecy Act. You're required to file an FBAR (FinCEN Form 114) by April 15, with an automatic extension to October 15. The penalties for not filing are steep: up to $16,536 per account per year (2026 inflation-adjusted amount) for non-willful failures. Depending on your total foreign asset values, you may also need to file Form 8938 under FATCA. Our review will flag any potential FBAR or FATCA obligations based on the exchanges you used.
How are staking rewards and airdrops taxed?
Staking rewards are taxable as ordinary income at the fair market value when you receive them (per Rev. Rul. 2023-14). This applies to both traditional staking and liquid staking through protocols like Lido or Rocket Pool. Airdrops are also treated as ordinary income at the fair market value on the date of receipt. Neither staking rewards nor airdrops will appear on your 1099-DA, but they still need to be reported on your tax return. We'll flag any staking or airdrop activity that needs to be accounted for in your filing.
How are NFTs taxed?
Selling or disposing of an NFT is a taxable event with capital gains or loss treatment. Buying an NFT is not itself a taxable event — it establishes your cost basis (purchase price plus gas fees). Similarly, minting an NFT sets your basis at the mint price plus gas fees paid. When you sell, the difference between your sale proceeds and cost basis is your taxable gain or loss. NFT transactions won't appear on any 1099-DA, but dispositions need to be reported on your tax return. If you had NFT activity in 2025, mention it in the form and include any records you have.
Does my state tax crypto differently than the federal government?
It can. While most states follow the federal treatment of crypto as property, some states have specific rules or adjustments that differ from the federal approach. Since we ask for your state of residence in the intake form, we'll flag any state-specific issues that apply to your situation. If you have significant crypto gains, keep in mind that you may also owe estimated state tax payments in addition to federal.
What about estimated tax payments on crypto gains?
If your 1099-DA review reveals significant capital gains, you may owe estimated tax payments. The IRS generally expects quarterly estimated payments if you'll owe $1,000 or more in taxes beyond what's covered by withholding. Given the April 15 filing deadline, this is time-sensitive. If our review identifies large gains, we'll note the potential estimated tax obligation in your findings so you can take action before penalties start accruing.
My exchange hasn't sent my 1099-DA yet. Is that normal?
It may be. The IRS deadline for brokers to furnish 1099-DA statements was February 17, 2026, but several exchanges are delivering forms later. Under IRS Notice 2025-33, the IRS has provided good-faith penalty relief for brokers that file or furnish 1099-DAs late for the 2025 tax year, provided they made reasonable efforts to comply. This means some exchanges are taking additional time to ensure accuracy. If you haven't received yours yet, check your exchange's tax documents section. You can also submit your transaction history and other records now, and we'll incorporate your 1099-DA when it arrives.
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The information provided is for general educational purposes only and does not constitute tax, legal, or investment advice. This content is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Tax outcomes depend on your specific facts and circumstances. Viewing this material does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.