1099-DA Reconciliation Service
Your 1099-DA shows proceeds. It probably doesn't show what you paid. A licensed CPA will reconcile your 1099-DA against your actual transaction history, reconstruct missing cost basis, and deliver a complete Form 8949-ready analysis, so you file accurately and don't overpay.
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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.
Key Facts
- •Form 1099-DA is new for tax year 2025
- •Brokers report gross proceeds only for 2025 (no cost basis)
- •$0 or blank basis does not mean zero gain
- •Cost basis reporting required starting 2026 for covered securities acquired on or after Jan 1, 2026
- •Non-custodial platforms not currently required to file
- •Notice 2024-56: good-faith penalty relief for brokers filing 2025 1099-DAs
- •Notice 2024-57: wrapping/unwrapping, staking rewards, DeFi LP positions, and certain NFT dispositions temporarily exempt from 1099-DA reporting
- •1099-K (for exchanges acting as payment processors) is separate from 1099-DA. OBBBA restored the 1099-K threshold to $20K/200 transactions.
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, 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.
What Your 1099-DA Shows
- Proceeds
- $12,000
- Cost basis
- $0 / Unknown
- Taxable gain
- $12,000
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 Rev. Proc. 2024-28), 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 (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 reconciliation now can prevent a far more stressful (and expensive) situation when CP2000 notices typically arrive 12 to 18 months after filing.
The IRS has also intensified enforcement through Operation Hidden Treasure, using blockchain analytics tools (Chainalysis, Elliptic) to trace on-chain activity and identify unreported transactions. By the end of 2025, the IRS had issued over 320,000 CP2000 notices related to digital asset discrepancies. Accurate reconciliation is no longer optional.
This is exactly what the 1099-DA Reconciliation Service resolves. I reconstruct the full picture: proceeds, basis, holding periods, and adjustment codes. Your return is accurate and defensible.
Learn more about the crypto tax services or read the guide on the 1099-DA $0 basis trap.
What's Included in Your Reconciliation
Every engagement includes the following, delivered within 5-7 business days of receiving your complete documents.
3-Way Reconciliation
Line-by-line comparison of your 1099-DA against your exchange CSV and on-chain/wallet data.
Cost Basis Reconstruction
Identification and documentation of missing cost basis for transferred-in assets, cross-exchange activity, and noncovered lots.
Cost Basis Method Analysis
Side-by-side comparison of FIFO vs. Specific Identification (with HIFO lot selection) showing the dollar impact on your tax liability, with a recommendation.
Form 8949 Mapping
Correct box routing (G/H/I, J/K/L) and Column (f) adjustment codes (B, E, N, O, T) for every discrepancy identified.
AUR Mismatch & CP2000 Risk Assessment
Identification of any figures that would trigger an IRS Automated Underreporter notice, with documentation strategy.
State-Specific Analysis
Notes specific to your state of residence. NJ clients receive detailed analysis of the bucket system, no-carryforward rule, and combined rate impact.
FBAR & FATCA Flags
Identification of foreign exchange usage that may trigger FinCEN 114 or Form 8938 filing requirements.
Plain-English Summary
A clear, written report explaining your crypto tax situation, what needs attention, and recommended next steps.
This reconciliation is a standalone deliverable. It can be used by you or your tax preparer to file accurately. Clients who want me to also prepare the return can bundle this with the Crypto Tax Prep & Advisory service.
Common 1099-DA Issues I Find
These are the most common issues I identify during reconciliation.
Exchange-Specific 1099-DA Issues
Each exchange handles 1099-DA reporting differently. Here's what I see.
Uses aggregate reporting for stablecoin conversions, so inflated proceeds are common. Extended 1099-DA delivery to March 17, 2026 under IRS Notice 2025-33. Check your Tax Center for forms.
Typically reports individual transactions. Cost basis is rarely included for transferred-in assets. Download your full transaction history CSV for best results.
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.
Generally provides cleaner 1099-DA data, but cost basis is still missing for assets transferred from external wallets. Export your transaction history as CSV.
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.
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.
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.
Binance.US may issue Form 1099-DA for reportable dispositions. Download your 1099-DA and full transaction history export for the most complete reconciliation.
Decentralized exchanges don't issue 1099-DAs (the DeFi broker rule was repealed in April 2025 via H.J.Res. 25). But all DeFi transactions are still taxable. Include any records you have - wallet exports, blockchain explorers, or DeFi aggregator data.
I reconcile 1099-DAs from every exchange - Strike, Swan, eToro, Uphold, Bitfinex, OKX, and all others. Upload your 1099-DA PDF and transaction history CSV in whatever format your exchange provides.
Don't see your exchange? I reconcile 1099-DAs from every broker. Get started →
Pricing
Pricing is based on the number of exchanges and wallets involved and the complexity of your transaction history. Every engagement begins with a consultation to assess scope and provide a clear, written quote before any work begins.
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
- Plain-English summary report
Best for: Buy-and-hold investors or single-exchange traders
Book a ConsultationMulti-Exchange & Wallet Reconciliation
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
- FBAR/FATCA screening
- Cost basis method comparison with recommendation
Best for: Active traders who moved crypto between exchanges or used self-custody
Book a ConsultationFull Reconciliation + Tax Prep Bundle
Starting at
$1,250
- Everything in Multi-Exchange Reconciliation
- Complete federal + state tax return preparation
- Filed through the secure TaxDome portal
- Priority support through filing
Best for: Investors who want one CPA handling everything
Book a ConsultationExact pricing is determined after consultation based on your specific situation. View the full pricing page →
How It Works
Consult
Book a consultation to discuss your crypto activity, exchanges used, and complexity. I'll provide a clear, written quote before any work begins.
Engage & Upload
Once you approve the quote, I send an engagement letter and open your secure TaxDome portal. Upload your 1099-DAs, exchange CSVs, and any wallet records.
Receive Your Analysis
Greg Monaco, CPA reviews your documents line-by-line and delivers a complete reconciliation report within 5 to 7 business days, with recommended next steps.
Why a CPA Reconciliation, Not Just Software
Tax software like TurboTax, CoinTracker, or Koinly can import your 1099-DA, but it can't reconstruct missing cost basis from cross-exchange transfers, identify stablecoin reporting anomalies, assess your CP2000 risk, or determine which Form 8949 adjustment codes apply to your specific discrepancies.
A CPA reconciliation catches what software misses. And if the IRS questions your return, you have documented professional analysis to support your filing position, not just a spreadsheet export.
Key Dates for 2025 Tax Season
Need more time? Filing an extension (Form 4868) extends your deadline to October 15 without increasing audit risk. I can help you estimate and pay any tax owed by April 15 to avoid interest.
Ready to Get Your 1099-DA Reconciled?
The IRS now has standardized third-party proceeds data for digital assets at a scale it has never had before. The margin for error is smaller than it has ever been. Don't let missing cost basis turn into an inflated tax bill, or a CP2000 notice 18 months from now.
Not sure what documents to gather? Use the crypto filing checklist to make sure you have everything ready.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. federal tax advice contained herein is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.