Clarity Tax & CPAs launches crypto tax reconciliation service as Form 1099-DA rolls out

Clarity Tax & CPAs has launched a cryptocurrency tax and reconciliation service for investors as the IRS’s new Form 1099-DA begins reaching taxpayers. The service is aimed at people whose broker reports do not include cost basis, a gap that can distort tax bills and trigger IRS notices.

Why it matters: - The IRS’s new Form 1099-DA can show crypto sale proceeds without cost basis, which can make taxpayers look like they owe more than they do. - Investors who traded across wallets, exchanges and payment platforms may need to reconstruct records before new cost basis reporting rules fully tighten. - The reconciliation burden is especially heavy for active traders and anyone with older or moved assets.

What happened: - Clarity Tax & CPAs launched a dedicated cryptocurrency tax and reconciliation service for individual and business investors. - The firm announced the service on July 16, 2026, in Bellingham, Washington. - The launch comes as the first wave of the IRS’s new Form 1099-DA reaches digital asset investors.

The details: - Under rules effective for tax year 2025, digital asset brokers must report gross proceeds from crypto sales to the IRS on Form 1099-DA. - Brokers are not required to report cost basis for those transactions under the 2025 rules. - For digital assets acquired on or after January 1, 2026 and held in a single broker account, brokers must begin reporting cost basis. - Assets bought before that date, or moved between wallets and exchanges, remain the investor’s responsibility to document. - Clarity Tax & CPAs says the new service consolidates activity across wallets, exchanges and payment platforms, reconciles it against broker statements, and reports it on the investor’s return. - The firm says it handles portfolios ranging from a few hundred transactions to more than 100,000 trades a year. - The service is designed to catch taxable events investors often miss, including crypto-to-crypto exchanges. - Doni Kudratov, Cryptocurrency Tax Specialist at Clarity Tax & CPAs, said crypto-to-crypto swaps are taxable sales and are the mistake the firm sees most often. - Kudratov said reconciliation is what can stand between a clean return and an IRS notice when brokers report proceeds without cost basis. - Clarity Tax & CPAs has advised clients since 1976 and says it serves roughly hundreds of active clients from its Bellingham office. - Cryptocurrency clients are served nationwide through remote engagements. - Investors who received Form 1099-DA, or who traded digital assets during 2025, can request a free quote at claritytaxgroup.com or by calling (360) 862-6556.

Between the lines: - The launch targets a likely compliance gap: broker reporting is improving, but historical trades and cross-platform activity still leave taxpayers responsible for much of the recordkeeping. - The firm is positioning crypto tax work as an extension of its broader audit and complex tax practice, not as a standalone niche offering.

What's next: - Cost basis reporting will expand for qualifying digital assets acquired on or after January 1, 2026 and held in a single broker account. - Taxpayers with older assets or activity spread across multiple platforms will still need to reconcile their own records for future filings. - Investors with 2025 trading activity are the immediate audience for the new service as Form 1099-DA reporting begins.