
How Is Crypto Taxed? (2025) IRS Rules and How to File
Wondering how crypto taxes work and how to report cryptocurrency on your taxes? Our crypto accountants have your answers!
Form 1099-DA now sends your sale proceeds to the IRS, often without cost basis, and the IRS matches every form against your return. A return that does not reconcile produces a notice. Our accountants reconstruct every wallet and exchange, our attorneys review the positions, and the same team answers the IRS if it writes. The firm has prepared more than 1,500 crypto tax reports since 2014.
Crypto tax software is a starting point. It labels transfers between your own wallets as sales, assigns zero basis to anything it cannot trace, mishandles liquidity pools and staking, and double-counts across integrations. We work with whichever tool you use, then reconcile its output against the chain and the broker forms: internal transfers identified, missing basis resolved, income classified, and totals tied to what the IRS received. The result is a return that holds up, and the records to prove it.
Trading, staking, mining, NFTs, DeFi, airdrops, and offshore exchange activity, reported on Forms 8949, Schedule D, and Schedule 1 with wallet-level records. Prepared by Gordon Tax and reviewed by Gordon Law attorneys.
Past years corrected with amended returns for non-willful omissions. Where the omission may have been willful, the attorneys advise on the Voluntary Disclosure Practice first, under privilege, before anything is filed. Crypto tax
Accounts on Binance, Bybit, KuCoin, and other foreign platforms may create FBAR and Form 8938 obligations when they hold fiat alongside crypto, and offshore perpetuals generate no tax forms at all. Foreign reporting is prepared with the return. FBAR for crypto on foreign exchanges
Wrapping, bridging, liquid staking, and liquidity pool deposits have no direct IRS guidance. We explain the conservative and the more assertive position, document the one you choose, and provide a written opinion when the amounts justify it. Tax opinion letters

Wondering how crypto taxes work and how to report cryptocurrency on your taxes? Our crypto accountants have your answers!

“This is a major turning point, your crypto taxes cannot be ignored anymore,” says tax attorney and CPA Andrew Gordon.

Confused about crypto staking taxes? Our crypto accountants are here to help! Learn how to report staking rewards on your tax return.

Are you wondering how to avoid crypto taxes without breaking any rules? Discover 12 tried-and-true strategies from crypto accountants who do this every day.
1. Records. You give us access to your exchanges and wallet addresses, or exports from your software. Nothing needs to be organized first.
2. Reconciliation. Our accountants rebuild the history wallet by wallet, with basis tracked the way the IRS requires since 2025, and flag the positions that need a decision.
3. Review and filing. An attorney reviews the positions, the return is prepared and filed, and you receive the reconciliation report to keep. If the IRS writes about the year, the attorney answers.
Prior unreported years are handled the same way, as amended returns or through a disclosure program where the facts call for one.
Exchanges report your sales to the IRS on Form 1099-DA, but many report proceeds without the basis you paid. If you do not file, or file without reconciling, the IRS computes tax on the full proceeds and sends a notice for it. A reconciled return replaces that number with your real gain, which is often a fraction of it, and sometimes a loss. Reporting is how you keep your basis.
Founded in 2012 by a tax attorney and CPA. Crypto tax since 2014.
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Tax, crypto, and business law for clients in all 50 states, from an office in Skokie, Illinois. Every matter is staffed by an attorney, with Gordon Tax handling the accounting alongside.
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