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Paid Service · Crypto Tax CPA

1099-DA Reconciliation Service

Your 1099-DA shows proceeds but may omit basis. I compare it with client-supplied transaction records, document supported basis and Form 8949 treatment, and identify gaps that cannot be resolved from the records provided.

Line-by-line 1099-DA reconciliation against your exchange CSV and on-chain records
Missing cost basis reconstruction for transferred-in and cross-exchange assets
Form 8949 box routing (G/H/I, J/K/L), reconstructed basis in Column (e), adjustment codes only where they apply
Reporting-method comparison for completed dispositions when supported by client records
AUR mismatch and CP2000 notice risk assessment
Foreign-platform records identified for referral to an international-reporting specialist
State-specific notes where relevant
Designated TaxDome client portal after engagementCredential status: verify with NJ State BoardReviewed by sole practitioner Greg Monaco
New clients: use the contact formView Crypto Tax Services

Gregory Monaco, CPA LLC, a New Jersey CPA firm doing business as Monaco CPA and MonacoCryptoTax. Engagement scope is set out in a written scope confirmed before work begins.

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Use of this website does not create a CPA-client relationship. Personalized advice is provided only through a signed engagement letter.

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Quick Answer

  • For reportable broker-effected dispositions in 2025, Form 1099-DA generally reports gross proceeds; basis is not required. For sales after 2025, mandatory basis reporting generally applies only to covered securities.
  • A blank basis box (Box 1g) is common for noncovered lots. If Box 1g reports $0, verify it: the instructions call for zero only when adjusted basis is actually zero. Supported missing basis is reported in Column (e) of Form 8949 (Box H/K).
  • The IRS's Automated Underreporter (AUR) process compares information returns to filed returns and may issue a CP2000 when it finds a difference, so a 1099-DA amount that does not match your Form 8949 can raise mismatch/notice risk. (This is the general AUR/CP2000 mechanism; it is separate from Operation Hidden Treasure, which TIGTA found lacked specific enforcement deliverables.)
  • Monaco CPA compares client-supplied 1099-DA, exchange, and on-chain records and documents permitted reporting methods for completed dispositions; unresolved gaps are stated.
  • Three starting-price tiers: $350 (single exchange), $750 (accepted multi-exchange scope), and $1,250 (full reconciliation + federal and permitted state return components when accepted in writing).

Key Facts

  • •Form 1099-DA is new for tax year 2025
  • •For 2025, gross proceeds are generally required; basis is not required
  • •Blank basis is common; a reported $0 should be verified
  • •For sales after 2025, basis is generally required only for securities acquired after 2025 through a qualifying acquisition in a broker-custodial account and held there until disposition
  • •Non-custodial platforms not currently required to file
  • •Notice 2024-56: good-faith penalty relief for brokers filing 2025 1099-DAs
  • •Notice 2024-57: temporary broker filing-and-furnishing relief for specified wrapping/unwrapping, staking transfer and redemption, DeFi LP, digital-asset lending, certain short-sale, and notional-principal-contract transactions. It does not change substantive tax treatment (staking REWARDS are income, never a 1099-DA item; NFT dispositions are NOT covered by Notice 2024-57).
  • •Form 1099-K (which is separate from 1099-DA) has different issuer rules: third-party-network transactions have a federal mandatory-reporting threshold of more than $20,000 and more than 200 transactions, while payment-card merchant acquirers have no federal de-minimis threshold. A TPSO may still issue a form below its mandatory threshold.
Reviewed by Gregory MonacoLast updated: August 7, 2026

Why Your 1099-DA Needs Professional Reconciliation

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, the cost-basis box on their 1099-DA is left blank or shows "Unknown" on most lines.

A Form 1099-DA without reported cost basis does not establish gain. The taxpayer must calculate gain or loss from the actual proceeds, supported basis, and other applicable adjustments.

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 no reported cost basis. The Form 1099-DA does not by itself state the gain. In this illustration, $10,000 of supported basis produces a $2,000 gain before other applicable adjustments.

What Your 1099-DA Shows

Proceeds
$12,000
Cost basis
Blank / Unknown
Gain / loss
Not reported

What Actually Happened

Proceeds
$12,000
Cost basis
$10,000
Actual gain
$2,000

Example for illustration only.

On top of that, starting in 2025 the IRS requires cost basis to be tracked at the wallet and account level (per Treas. Reg. §1.1012-1(j)), eliminating the previous universal pooling method. Rev. Proc. 2024-28 provides a safe harbor for allocating pre-2025 "unattached" basis to wallets and accounts as of January 1, 2025, subject to specific recordkeeping and completion requirements. 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, your 1099-DA may show "Unknown" cost basis. Client-supplied acquisition and transfer records may support a different reported gain; absent records remain an unresolved basis gap.

Beyond the immediate tax impact, a discrepancy between what your exchange reported and what you file can create mismatch risk in the IRS's Automated Underreporter (AUR) process. AUR may generate a CP2000 notice when amounts disagree. Reconciliation can document valid basis, timing, aggregation, or fee differences, but it cannot guarantee that the IRS will not issue a notice.

The IRS has publicized blockchain-analytics capabilities (for example Chainalysis and Elliptic) to trace on-chain activity, and Operation Hidden Treasure was announced with that aim - though TIGTA Report 2024-300-030 found the initiative's charter lacked specific enforcement deliverables and had no written results summaries. Separately and more concretely, the Automated Underreporter (AUR) process (IRM 4.19.3) compares information returns against filed returns and may issue a CP2000 when amounts disagree. Reconciliation documents the reported differences but does not determine whether the IRS will issue a notice.

This is what the 1099-DA Reconciliation Service evaluates. I compare the client-supplied records, document supported proceeds, basis, holding periods, and adjustment-code treatment, and state unresolved gaps. No completeness or IRS-outcome result is promised.

Learn more about the crypto tax services or review the currently published tax resources.

What's Included in Your Reconciliation

An accepted engagement identifies its included components in writing. The analysis is limited to client-supplied records, documents unresolved gaps, and has no fixed turnaround promise.

3-Way Reconciliation

Line-by-line comparison of client-supplied 1099-DA, exchange CSV, and on-chain or wallet records within the accepted scope, with unresolved gaps documented.

Cost Basis Reconstruction

Identification and documentation of missing cost basis for transferred-in assets, cross-exchange activity, and noncovered lots to the extent supported by client-supplied records.

Cost Basis Method Analysis

Reporting comparison of FIFO and adequately documented Specific Identification for completed dispositions, limited to methods permitted by the records and tax rules. This is not an investment, sale, repurchase, or timing recommendation.

Form 8949 Mapping

Form 8949 box-routing analysis (G/H/I, J/K/L) and supported reconstructed basis in Column (e). The missing-basis case needs no adjustment code; Column (f) codes are documented only where supported (for example, Code B when correcting basis a broker reported to the IRS).

AUR Mismatch & CP2000 Risk Assessment

Identification of figures that may create AUR mismatch or CP2000 notice risk, with a documentation strategy; a mismatch does not guarantee a notice.

NJ & Written-Scope State Analysis

State-specific notes where relevant, including NJ's bucket system and no-carryforward rule.

International Reporting Boundary

Foreign-platform records are identified for education and referral only. Monaco CPA does not prepare FBAR, Form 8938, or other international information returns.

Plain-English Summary

A written report describing the records reviewed, observed reporting issues, return treatment, and any unresolved data gaps.

This reconciliation is a standalone deliverable that documents return-reporting treatment supported by the supplied records. An accepted engagement may also include return preparation through the Crypto Tax Preparation service.

1099-DA Reconciliation Questions

These examples identify records that may need investigation; they do not assert a frequency, error, or tax result for any taxpayer.

Platform Record Collection

Download the recipient statements and transaction records actually available for each account. Reporting and export formats depend on the platform, account, activity, and current broker procedures.

Broker and exchange accounts

Download every recipient statement and the complete transaction-history export available for the account. A single PDF may contain multiple information-return forms, so review the complete document rather than assuming Form 1099-DA is delivered separately.

Transferred assets

A broker statement may show missing, informational, or taxpayer-supplied basis for an asset transferred from another wallet or platform. Preserve acquisition and transfer records; a displayed basis amount is not independently verified merely because it appears on a statement or export.

Software and basis records

Software output depends on complete and correct imports, transfer matching, basis history, and settings. Some products can carry or edit basis and flag anomalies, but unresolved source-data gaps and return characterization still require review.

Noncustodial and DeFi activity

The 2025 repeal of the specified DeFi broker rule does not determine whether another reporting broker issues a form and does not make underlying activity nontaxable. Provide available wallet, block-explorer, protocol, and aggregator records, plus any form actually received.

Other platforms

Other-exchange records are reviewed during intake to confirm format and scope. Monaco CPA does not promise support for every exchange; provide the 1099-DA and transaction-history export available from your platform.

Records from an unlisted broker are considered during intake for format and scope; support is not promised. A contact-form submission does not guarantee a response, quote, or engagement. Submit an intake request →

Pricing

Pricing is based on the number of exchanges and wallets involved and the complexity of the supplied transaction history. A contact-form submission is an intake request only. If I accept the requested work, the scope and price are stated in writing before the engagement begins; no response, quote, or engagement is guaranteed.

Single Exchange Reconciliation

Starting at

$350

  • 1099-DA from one exchange reconciled against transaction CSV
  • Cost basis reconstruction for on-platform activity
  • Form 8949 mapping with adjustment codes where they apply
  • Plain-English summary report

Best for: Buy-and-hold investors or single-exchange traders

Use the contact form
Most Popular

Accepted Multi-Exchange Scope

Starting at

$750

  • 1099-DAs from multiple exchanges reconciled against CSVs and wallet data
  • Cross-exchange transfer basis reconstruction
  • Rev. Proc. 2024-28 allocation analysis
  • Foreign-platform record identification for specialist referral
  • Completed-disposition reporting-method comparison when records support it

Best for: Active traders who moved crypto between exchanges or used self-custody

Use the contact form

Reconciliation + Tax Prep Bundle

Starting at

$1,250

  • Full reconciliation + federal and permitted state return components, when accepted in writing
  • Additional state return components only when specifically accepted in writing and permitted
  • Secure TaxDome submission for the accepted filing engagement

Best for: Filers seeking accepted return preparation with reconciliation

Use the contact form

These are starting prices, not quotes. What a reconciliation actually costs depends on the accepted written scope, the number of exchanges and wallets, transaction volume, how many tax years are involved, whether basis has to be reconstructed across transfers, and the condition of the records supplied. If an intake request is accepted, the exact scope and price are stated in writing before the engagement begins; no response or quote is guaranteed. See pricing for the firm's other services →

Compare tiers side-by-side

What’s includedSingle Exchange
$350		Accepted Multi-Exchange Scope
$750		Tax Prep Bundle
$1,250
1099-DA reconciliation vs. transaction CSV
Cost basis reconstruction (on-platform)
Form 8949 mapping with adjustment codes where they apply
Plain-English summary report
Multiple exchanges + self-custody wallets-
Cross-exchange transfer basis reconstruction-
Rev. Proc. 2024-28 allocation analysis-
Foreign-platform records flagged for specialist referral-
Completed-disposition reporting-method comparison-
Federal + permitted state return components when accepted in writing--
Secure TaxDome submission for accepted return preparation--

How It Works

Contact

Use the contact form to describe your crypto activity, exchanges used, and complexity. A submission may or may not receive a written scope and price; it does not guarantee a response, quote, or engagement.

Engage & Upload

If I offer a written scope and price and you accept the engagement, I open a secure TaxDome portal for the client-supplied records named in that scope.

Receive Your Analysis

I review the client-supplied records within the accepted scope and provide a written reconciliation of observed reporting issues, supported treatment, and unresolved data gaps. No fixed turnaround is promised.

Use the contact form

Reconciliation Scope and Software Limits

Software output depends on complete and correct imports, transfer matching, basis history, elections, and settings. Some products can carry or edit basis and diagnose transfers or anomalies. No product is categorically sufficient or insufficient; unresolved source-data gaps, return characterization, and adjustment-code application may still require fact-specific review.

A CPA reconciliation can evaluate issues that software does not address. If the IRS later questions the return, the workpapers document the records reviewed, supported reporting treatment, and unresolved gaps rather than promising an IRS outcome.

Key Dates - TY2025 Returns

October 15, 2026 · Extended filing deadline (Form 4868) for TY2025 returns - the live deadline. Extension filers still have time to reconcile 1099-DA records before filing.
Earlier TY2025 dates (passed) · The April 15, 2026 federal filing deadline and Coinbase's stated TY2025 Form 1099-DA delivery commitment (March 17, 2026 - an operational broker timeline per Coinbase Help Center) have passed. On-point IRS transition relief is Notice 2024-56 / 2024-57 / 2025-7; Notice 2025-33 extends §3406 backup-withholding relief, not furnishing deadlines. If you missed April 15 without an extension, file promptly to limit failure-to-file penalties.

On extension? If you filed Form 4868, your 2025 return is due October 15, 2026. If tax remains unpaid, interest may continue to accrue. An accepted return-preparation scope may include a written payment calculation, but the client transmits any payment and remains responsible for meeting the deadline.

Frequently Asked Questions

What is Form 1099-DA?
Form 1099-DA is an IRS information return for specified broker-effected digital-asset sales. Reporting brokers generally began reporting 2025 gross proceeds, subject to transaction-specific exceptions and optional methods; every lot sold in 2025 was noncovered, because covered status requires an acquisition after 2025, so basis reporting for those sales was voluntary. Do not infer filing from an exchange name alone: verify whether the entity shown on the actual form was the broker that effected a reportable sale. Form 1099-DA is excluded from the Combined Federal/State Filing Program for TY 2025, but applicable state reporting obligations remain.
Why does my 1099-DA show $0 or "Unknown" cost basis?
For reportable broker-effected dispositions in 2025, brokers generally must report gross proceeds but are not required to report basis. A broker may voluntarily report basis for a noncovered security; the Form 1099-DA instructions provide basis-reporting penalty relief for that voluntary entry only when the broker marks the security noncovered in Box 9. For sales after 2025, mandatory basis reporting generally applies only to a covered security acquired after 2025 through a qualifying acquisition in a broker-custodial account and held there until the broker effects the disposition. Pre-2026, transferred-in, and noncustodial lots are noncovered to the reporting broker, but the broker may still voluntarily report basis. Verify any reported basis against your records.
What happens if I don't reconcile my 1099-DA?
The IRS receives a copy of a 1099-DA filed by your exchange. Its Automated Underreporter (AUR) process compares reported proceeds with the tax return. A missing or inconsistent Form 8949 entry can lead to a CP2000 notice proposing additional tax, while unsupported basis can change the gain shown on the return. Reconciliation documents the comparison but does not promise a tax or IRS outcome.
What is a CP2000 notice?
A CP2000 is an IRS notice proposing changes to your tax return based on third-party information that does not match the filed return. It is not an audit; it is an automated matching discrepancy. For crypto, differences between 1099-DA proceeds and Form 8949 can generate a notice. The notice states its response deadline, often 30 days. Contemporaneous basis records can support a response, but reconciliation does not guarantee acceptance or prevent a notice.
What documents do I need to provide?
At minimum, provide the 1099-DA PDF and transaction-history CSV or XLSX export available from each exchange in the accepted scope. If you used DeFi protocols, include the records you have. Prior-year crypto-software exports, Form 8949, Schedule D, and hardware-wallet transaction exports can help establish the reporting history. The analysis is based on client-supplied records; missing or irreconcilable data is documented as an unresolved gap rather than assumed complete.
Who reviews my documents?
Gregory Monaco, founder and sole practitioner of Gregory Monaco, CPA LLC (doing business as Monaco CPA), reviews accepted documents. He holds NJ CPA license #20CC04711400 and NJ CPA firm registration #20CB00789800, verifiable with the New Jersey State Board of Accountancy. Linked editorial records show a New Jersey CPA Magazine feature and identified quotations in other publications; those media mentions are not professional credentials.
How long does the reconciliation take?
Timing depends on the accepted scope, record quality, and current filing-season capacity. An accepted engagement describes the work in writing, but no fixed turnaround is promised. The report states the records reviewed, observed discrepancies, Form 8949 reporting treatment, and any unresolved data gaps.
What if I used multiple exchanges?
The Accepted Multi-Exchange Scope tier can cover the exchanges and wallets specifically accepted in writing. I compare the client-supplied records across that scope and document transfers, discrepancies, and unresolved gaps. Cross-exchange transfers are a common source of missing cost basis on 1099-DAs.
Do wash sale rules apply to cryptocurrency?
For completed transactions, current Section 1091 wash-sale treatment generally does not apply to standard cryptocurrencies such as Bitcoin or Ethereum, while it can apply to digital assets that are also securities, such as tokenized stocks or certain debt instruments. A reconciliation may document how this rule affects completed dispositions in the accepted return scope. Monaco CPA does not provide investment, loss-harvesting, trade-monitoring, sale, repurchase, or transaction-timing recommendations.
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. Accepted engagements include NJ-specific notes on the bucket system and no-carryforward rule.
What if I used a DEX like Uniswap or did DeFi?
H.J.Res. 25 / Public Law 119-5 repealed the rule that would have treated specified noncustodial trading front-end services as brokers. That repeal does not categorically determine reporting for every DeFi-labeled transaction or intermediary; activity effected by another reporting broker can still appear on a form. DeFi activity can also produce taxable events without an information return. Provide available wallet, block-explorer, aggregator, and any actually issued form records.
Can I bundle this with tax preparation?
An accepted Reconciliation + Tax Prep engagement can combine the specifically written reconciliation scope with federal and permitted state return components through the secure TaxDome portal. Coverage remains limited to the records and components named in the engagement.
What if my 1099-DA has errors?
If a recipient statement appears incorrect, contact the broker about a corrected form and preserve the source records supporting the discrepancy. The return still uses the taxpayer's supported records and applicable Form 8949 treatment. Within an accepted scope, I compare client-supplied data, document observed discrepancies and reporting treatment, and identify unresolved gaps.
Should I file an extension if I'm waiting for my 1099-DA?
A timely Form 4868 generally extends the 2025 federal return filing deadline to October 15, 2026; it does not extend the time to pay tax. Interest and, when applicable, late-payment penalties may accrue on unpaid tax after the original due date. If neither a return nor a valid extension was timely filed, filing promptly can limit additional failure-to-file penalties. State extension and payment rules are separate.
How much does the reconciliation cost?
Pricing starts at $350 for single-exchange reconciliation and $750 for an accepted multi-exchange scope. The $1,250 Reconciliation + Tax Prep Bundle covers full reconciliation + federal and permitted state return components when those components are accepted in writing. A contact-form submission is only an intake request. If the requested work is accepted, the scope and price are stated in writing before an engagement begins; a submission does not guarantee a response, quote, or engagement.
View full FAQ →

Ready to Get Your 1099-DA Reconciled?

The IRS now receives standardized third-party proceeds data for digital assets. Differences between that data and Form 8949 can affect reported gain and create AUR or CP2000 mismatch risk. Reconciliation documents the records and reporting treatment; it does not promise a particular tax or IRS outcome.

Use the contact formLearn About Crypto Tax Services

Gregory Monaco, CPA LLC, a New Jersey CPA firm doing business as Monaco CPA and MonacoCryptoTax. Engagement scope is set out in a written scope confirmed before work begins.

Not sure what documents to gather? Use the crypto filing checklist to gather the records available for intake.

Tax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.