Digital Asset Reconciliation and Crypto Cost Basis Reconstruction

The problem with tracking crypto.

Crypto records break when platforms only see one part of a transaction. A missing acquisition, an unmatched wallet transfer, or incomplete broker basis can turn clean activity into false gains. Digital asset reconciliation reconnects the evidence before those errors reach Form 8949.

From raw data to taxable events.

Reconciliation turns incompatible exports, on-chain events, prior-year lots, and broker forms into one transaction-level record. Each source is normalized, transfers are matched, activity is classified, and the completed ledger is tied to the tax forms that depend on it.

Why Crypto Transaction Reconciliation Is Critical

Crypto transaction reconciliation is critical because no single exchange sees the full life of an asset. When a transfer, bridge, or wallet is missing, software can sever the original cost basis and misclassify later activity. Reconciliation restores transaction-level continuity before tax treatment is applied.

What Clean Crypto Cost Basis Reconciliation Solves

Clean crypto cost basis reconciliation connects disposals to supported acquisition lots, removes false activity, and applies a consistent method to the records that remain.

Illustrative examples. The available records determine which treatments can be supported.

How do you reconstruct missing crypto cost basis?

Missing crypto cost basis is reconstructed by tracing assets backward through exchange CSV archives, wallet addresses, on-chain history, transfer records, prior-year reports, and historical prices. Each disposal is connected to supported acquisition evidence, while unresolved lots remain visible instead of receiving an unsupported number.

Zero basis is a last-resort reporting position. When reliable evidence cannot establish a figure, the lot stays on the exceptions report for review.

How we reconcile your portfolio.

We collect every available source, map the transaction story, reconstruct supported acquisition lots, and tie the completed ledger to broker forms and filing schedules. You see the open questions and approve the record before it becomes tax-ready output.

Meet Garrett Taylor, CPA.

Garrett leads the reconciliation strategy and final CPA review, while Leanne Grant, EA, provides a second licensed review of the tax-ready record. The engagement stays connected to named professionals from the first scope conversation through the final handoff.

What is 1099-DA reconciliation and why does it matter for 2026 filings?

1099-DA reconciliation compares broker-reported proceeds and any reported basis with the complete transaction ledger before filing. Brokers are not required to report basis on Forms 1099-DA for 2025 sales, so those forms generally show gross proceeds only. From 2026, basis is reported only for assets acquired after 2025 and held in the same account, so transferred-in and older holdings still arrive without it. A line-by-line tie-out explains the difference and keeps gross proceeds from being mistaken for taxable gain.

The broker form is one source record, not the full history. Once the tie-out is complete, the cleaned data can flow into crypto tax return preparation. If the mismatch has already produced correspondence, use our IRS crypto notice response service.

Seven deliverables, zero guesswork.

Every engagement ends with a reconciliation dossier that shows what was matched, what was rebuilt, what remains open, and how the final ledger connects to broker forms and tax schedules. Select a folder tab to inspect the structure of each deliverable.

Common questions.

These direct answers cover the records we support, how reconstruction works, what affects timing, and where reconciliation ends before tax preparation or notice response begins.