-- Chainwise CPA announces a specialized compliance program to help cryptocurrency investors navigate new Form 1099-DA reporting requirements that took effect January 1, 2025. This IRS form represents the most significant regulatory development in crypto taxation history, bringing digital asset reporting in line with traditional securities markets.
Beginning with the 2025 tax year, all cryptocurrency brokers in the U.S. must report gross proceeds from client transactions directly to the IRS. This mandatory third-party reporting fundamentally changes the compliance landscape for an estimated 52 million American crypto investors.
"We're entering a new era of complexity in cryptocurrency taxation," said Sharon Yip, CPA, Co-Founder and CEO. "For the first time, the IRS will receive crypto trade data for investors, with an automated 1099 matching system. This gives the IRS much better transparency than before and makes crypto tax compliance enforcement much easier. On the other hand, crypto investors are at a higher risk for getting IRS tax notice and overpaying crypto taxes due to incomplete information reported on Form 1099-DA. Unfortunately, most tax preparation service providers currently are not equipped to handle crypto reconciliation, leaving crypto investors scrambling to seek help. "
The firm's compliance program addresses unique transitional challenges. While exchanges must report gross proceeds, they are not required to report cost basis information until 2026, leaving investors responsible for calculating capital gains and losses.
"The most common mistake we're seeing is investors assuming they can wait until receiving their 1099-DA to think about taxes," explained Phil Gaudiano, CPA, Co-Founder and CFO. "Without proper record-keeping throughout the years, reconstructing cost basis information can be extremely difficult. We're helping clients implement systems now to avoid March panic."
With the IRS historically estimating only 25% compliance among crypto investors, the introduction of Form 1099-DA is expected to significantly increase audit activity in 2026 and beyond.
"Our goal is to turn this regulatory change into an opportunity," added Yip. "Investors who proactively address compliance now will avoid costly penalties and gain peace of mind."
About Chainwise CPA
Founded in 2020, Chainwise CPA is a specialized cryptocurrency tax advisory firm serving individuals, traders, and blockchain businesses nationwide. With 130+ years of combined tax experience, the firm has saved clients over $4.6 million in taxes while serving 2,000+ satisfied clients. Operating as a trade name of Polygon Advisory Group LLC and based in Reston, Virginia, Chainwise CPA delivers expert guidance on digital asset taxation.
For more information, please refer to the contact details below.
Contact Info:
Name: Sharon Yip
Email: Send Email
Organization: Chainwise CPA
Address: 12110 Sunset Hills Road, Suite 600 Reston, VA 20190
Phone: (703) 721-7250
Website: https://chainwisecpa.com/
Release ID: 89180928
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