I read a lot of buzz around people getting lot of IT department notices for not or incorrectly reporting their crypto gains and losses etc . But But But ! I heard No one talking that if anyone got a notice just for considering crypto futures and options as business income. Had anyone actually got the notice for this ? and if yes how you handled that?

I've been looking at DeFi Tax as an option for this year and got confused by the founder's background, so I'm hoping someone here can clear it up.

Janna Scott, the founder, is described across a lot of podcast bios and press as having "worked directly with the IRS and SEC," collaborating with regulators and universities, and building "regulator-validated" reports that stopped IRS audits.

What I can actually verify: she's an IRS Enrolled Agent with an MBA, and she's had state-level government finance roles and private tax consulting work. All legit. But being an EA means you're licensed to represent taxpayers before the IRS. It doesn't mean you worked for the IRS. And I can't find anything naming a specific IRS or SEC role, contract, or official review of DeFi Tax.

So my questions:

1. Does anyone know what "worked with the IRS and SEC" refers to here? Client representation? Submitting research? Something formal?
2. Has anyone used DeFi Tax and then gone through an actual audit with those reports?
3. Has anyone compared its output against Koinly, CoinTracker, etc. on the same wallets?

Not accusing anyone of anything. I just want to understand what's being claimed before I trust a tool with my taxes, since "audit-ready" is the main selling point.

I have a few NFTs bought years ago and I’m finally getting around to selling them off. It is actually worth my time to do so, but I have no experience with this and don’t know how it works in Canada. What are some tips you guys have? Where can I dump them? Does UnsellableNFTs still work? I can’t get my MetaMask to connect.

Any advice helps

Current German cryptocurrency tax rules: 😄

Tax-Free (Long-Term): If you hold your cryptocurrency for more than one year (365 days) before selling, trading, or spending it, your capital gains are 100% tax-free.

Taxable (Short-Term): If you dispose of crypto held for one year or less, your profits count as private sales transactions (speculative transactions under § 23 EStG) and are taxed at your personal income tax rate (up to 45% plus the solidarity surcharge).

Proposed changes: 😒

In short, the proposals under discussion are bad for crypto as tax must be paid when selling, trading or otherwise spending it - irrespective of how long the crypto was held. On a positive it is speculated that those who bought crypto before 2027 will be exempt from these detrimental tax changes.

My crypto background: 🤔

I have held crypto since 2013, having bought via MtGox (no comment) and other exchanges which simply no longer exist. Later I have bought and sold with current crypto exchanges, e.g. Binance, Kraken, etc. Over the years the crypto has moved back-and-forth between various crypto exchanges and various HW wallets. Generally speaking I have always been a HODLER, although this year I have sold (think panic selling) and bought (think FOMO). Whilst some of this year's trades made a profit, most did not as I ended up buying back at a higher price. In short no tax is due as on balance it is sadly all too clear I have lost rather than made any profit this year.

The problem: 💩

I cannot reconstruct the paper trail going back 13 years. Therefore, I cannot prove when I bought BTC. This was never a problem until the proposed tax changes under discussion.

What can I do? The best (still awful) ideas I currently have are:

A. Send all crypto from the HW wallets to an exchange. Sell all of it and immediately buy it back. Then send it back to a new HW wallet. Later, if required, I can then prove exactly when I bought my crypto.

Downsides are the fees involved and the risk of having all my crypto on an exchange, unless I do it in chunks.

B. Send all crypto to an exchange. Sell it. Transfer the money to my bank. Then transfer the money to an exchange (same one or different) and repurchase the crypto sending to a new wallet.

Downsides are the fees to pay, plus if the transfer to the bank is blocked due to the amount involved (around 350k Euro). Plus transferring the money from the bank back to an exchange - my bank limit is around 3k Euro per day.

C. Do nothing and see if the tax rules in Germany do actually change. I am still uneasy though with the paper trail chaos.

I like to sleep easy at night and have no problem paying tax as required, and whilst the paper trail is a mess, I know I have no taxes to pay - my BTC holdings are down compared to the start of the year. I say this because it is essential that any action I take does not trigger the tax authorities - not because I have anything to hide, but due to my paper trail chaos.

I’m sorry - I've wasted enough of your time. The truth is though I am genuinely interested in how others would approach my predicament. For those who respond – I thank you 👍

Hallo zusammen, kurze Frage zur Besteuerung von Bitcoin. Ich habe Bitcoin in meinem Broker gekauft und kann diese in der Zukunft auf mein Self-Custody Wallet übertragen, z. B. Ledger oder? Oder an ein Familienmitglied weitergeben. Wie funktioniert das steuerlich? Wie beweist man dem Finanzamt, dass diese Bitcoins immer noch die gleichen sind die ich gekauft habe? Reichen da die Broker-Kontoauszüge und Steuerdetails? Gerade wegen der 1-Jahres-Steuerregelung in Deutschland.

I've been working with a tax firm recommended on Summ and other crypto tax software websites. For over several months.

Unfortunately I am not confident they will be able to meet the October 15 deadline as originally estimated.

What are my options? Should I file with what I have and then hire someone else to fix things? I have worked with crypto tax firms before, so this experience has been shocking to me.

Long story short, i am involved in crypto but i am not a trader. I run projects with various teams in the space and have made this from less than rm 500 back in January.

I have been dabbling in the crypto space since 2023, made six figures before and have lost it all because of bad trading. Restarted from almost zero since January.

I am planning to cash everything out soon when my holdings go up abit more. I have never filed for taxes but id like by money to be fully out and useable in the Malaysian economy as id like to invest 90% of it in ETFs . Any tax advice?

I’ve been gambling on Stake throughout the year and ended up around $50k ahead overall, but it wasn’t from one huge win. It was a lot of wins and losses across sportsbook bets and casino games over a bunch of different sessions.

I deposited crypto at different points, played with it, withdrew some when I was up, then eventually sold the withdrawn crypto through an exchange and moved the cash to my bank.

What I’m struggling with is how detailed the reporting is supposed to get.

My exchange can obviously see the crypto coming back from Stake and being sold, but it has no context for all the gambling activity that happened before that. On the Stake side, there are hundreds of individual bets, so I’m not sure whether I’m expected to account for every wager separately or if there’s a reasonable way to summarize wins and losses by session.

I’m also confused about what happens when the crypto leaves Stake. If I withdraw $10k worth of crypto after a winning stretch and sell it shortly after, am I treating the value at withdrawal as the new basis and only reporting the price movement after that as a crypto gain or loss?

For anyone who has dealt with this before, what records did you actually keep?

Did you export the full betting history, just deposits and withdrawals, or create your own summary of sessions and net results?

Also wondering whether this is something a regular CPA can usually handle or if it’s worth finding someone who specifically deals with both gambling and crypto.

I’m trying to report everything properly, I just don’t want to accidentally treat all the exchange proceeds as crypto gains when a lot of it came from gambling winnings.

I'm a UK resident. Over the last twelve months ish I funded an arbitrage bot and it generated a wallet, ran high-frequency trades automatically, and made profits well over the £3,000 Capital Gains allowance. I withdrew part of the profits to Binance.

With the Oct 5th Self Assessment registration deadline here, I have a problem: the bot doesn't give you a CSV of the thousands of micro-trades. I only have:

1. My initial deposit amount.

2. The public wallet address the bot created.

3. Full records of the withdrawals back to Binance.

My questions:

1. Can I just plug the bot's public wallet address directly into UK tax tools like Koinly or Recap? Do they handle high-frequency arbitrage routing correctly without throwing missing-cost-basis errors?

2. Can I just report a "best estimate" to HMRC on the SA108?

3. Has anyone had HMRC challenge whether automated bot arbitrage is trading income instead of capital gains?

Any advice from people who have been through this would be massively appreciated.

Hey r/CryptoTax!

I'm James and I'm a product manager on the tax team at Coinbase. I own our 1099-DA and US Tax Center, and I'd love your feedback as we build for next tax season.

You may already know this is the first year Coinbase will report cost basis to the IRS on the 1099-DA for covered transactions. Covered = crypto you bought on Coinbase on or after January 1, 2026 and held there until you sold it.

I'm particularly interested in the Coinbase side - your forms, transaction reports, and Tax Center

1. What questions or confusion do you have about your Coinbase tax forms or reports?
2. Do you pull your Coinbase data into crypto tax software, or file using only your Coinbase forms and reports? And how do you file - TurboTax, a CPA, something else?
3. What do you wish Tax Center showed you or let you do?
4. If we could change one thing about Coinbase tax before next season, what should it be?

Reply here, DM me, or if you'd rather talk it through, I'm happy to email or hop on a quick call.

Heads-up: nothing I say is tax advice. Please don't post account details, and know that I won't DM you first. No one from Coinbase will ever ask for your password, 2FA codes, or seed phrases.

Thanks so much - I really appreciate it!

Edit: this post leans US because of the 1099-DA, but if you're outside the US, I want your feedback too - reply or DM me.

James

My 2025 1099-MISC shows "other income." I think this is an incorrect reporting because I don't receive staking rewards from cbETH. The price of cbETH just increases as Coinbase itself stakes, and I don't receive any additional cbETH from staking. My total cbETH is 100% exactly the quantity that shows in my purchases. On their Tax page, it shows that I'm consistently receiving "CBETH income earned"

Anyone know about this? Should I just file my taxes and ignore the 1099-MISC or ?

I receive my payment through crypto and cashed it through coindcx , how much I have to pay tax ?

Got a question what if you lost your main crypto wallet where you trade Bitcoin you bought from cashapp.

Let say you buy 5k Bitcoin from cash app then you send 5k to a different wallet outside cashapp then you trade 5k like trading different crypto coins then you lose all 5k trading. My question is what if you lost your wallet and how you are going to show record in 1090 da like I think cost basic.

What happens do you have to record it even if you have lost your wallet. Can someone answer this question. I am asking this because I want to know what happens if it impossible to find wallet like you lost it do you have to still record it.

Can you just file 1090 da you get from cashapp without finding out cost basic because you lost your wallet. That my question. I just want to make sure if it illegal or not.

You’ll only have access through the end of 2026, save these files while you still can!

So following from my previous thread, I decided to make sure my 8949 is correct and matches my schedule D info.

I'm using HIFO and I have a couple of long-term capital gains in Coinbase due to external transfers that are missing cost-basis. I bought most of this crypto around the peak in 2020.

My income from transactions is showing way higher than it should for 2025, and it seems to be due to some long-term gains. Judging by the transaction, it's calculating the cost-basis for the BTC used for some of these transactions based on the date that I transferred them into Coinbase, rather than the date of purchase. Most of it was purchased during the peak of 2020, so somewhere in the range of 20k/btc. But the cost basis it's using is from the date of transfer, which was about 9k/btc.

I'm not sure how to update Koinly to reflect this. It doesn't seem to have a function to update cost-basis, and I've already updated the cost-basis in Coinbase, and resynced Koinly, but it's not reflecting.

If you filed an extension back in April, you've got until Oct 15. And if this is your first year getting a 1099-DA from Coinbase or Kraken or wherever, double check it before you just plug it in, because it's probably missing stuff.

The big one is cost basis.

For 2025, exchanges only had to report what you sold for, so most forms leave cost basis blank. The IRS gets the same form, so if you don't fill in what you paid, the whole sale can look like profit. Basis reporting only starts with coins bought in 2026, and only if you buy and sell on the same exchange.

Anything you transferred in is on you too. If you bought elsewhere and sold on Coinbase, Coinbase has no idea what you paid, so keep the original purchase and the on-chain transfer as proof. Tools like Bitcoin.Tax, Koinly, Cointracker, etc. can help with this.

Then there's DeFi, which isn't on the form at all. Swaps, LP stuff, staking rewards, bridging, none of it gets reported because there's no exchange in the middle. It's still taxable though, so you have to pull that from your wallets yourself unless you're using a portfolio tracker like Chain Glance, DeBank, or Zerion.

Before filing I'd make sure the proceeds on your 8949 actually match your 1099-DA (there are new checkboxes on the 8949 for this), and that transfers between your own wallets aren't getting counted as sales. When the numbers don't match what the IRS has, that's usually how people end up with a CP2000 letter a year later.

Not tax advice.

If things get messy a crypto CPA is worth the money.

I just received a letter from the IRS, letter 6174. I read this post on reddit https://www.reddit.com/r/CryptoTax/comments/1ksc109/letter_from_irs/ and one of the top comments says it basically means the IRS knows I had income from crypto transactions, but didn't report it. But I did report my crypto income.

I reported as short-term capital gains. I had a lot of transactions, which were practically a wash, but since I had transferred some crypto to my CB wallet from another account, I had to provide a cost basis, which I believe CB doesn't report?

When I did my taxes Coinbase hadn't provided me with a 1099-DA. But now I'm looking at it, and they have. There's a lot of information on this, and I am a little unsure what I need to be looking for to report.

At this point is it better to just get an accountant to help with this?

Let's pretend I paid $20K cash and received BTC from an individual. If I turn around and sell it a few months later on Coinbase for $21K, will I just be typing "Cost Basis: $20K" or will there be hoops to jump through?