Cryptocurrency Tax Compliance
Complete documentation of your cryptocurrency transactions for tax filing and audit response. Track every trade, income event, and transfer with historical USD values across all blockchains.
Professional Cryptocurrency Tax Documentation Services
Cryptocurrency taxation has evolved from a regulatory gray area to a major enforcement priority for tax authorities worldwide. The IRS, HMRC, ATO, and tax agencies across Europe and Asia are actively auditing cryptocurrency holders, with penalties for non-compliance including substantial fines and potential criminal prosecution. Accurate tax documentation is no longer optional—it's essential for every cryptocurrency investor, trader, and DeFi user.
At FundTrace, we provide comprehensive cryptocurrency tax documentation that stands up to regulatory scrutiny. Our reports go far beyond simple transaction lists—we deliver complete, categorized documentation with cost basis calculations, gain/loss summaries, and audit-ready formatting that satisfies the most demanding tax authority requirements. Whether you're a long-term holder, active trader, DeFi yield farmer, or NFT collector, we document your complete crypto tax picture.
Unlike generic crypto tax software that often misses transactions, miscategorizes DeFi activity, or fails on complex scenarios, our expert analysis ensures nothing is missed and everything is properly classified. We work with individuals, businesses, and tax professionals to deliver documentation that provides confidence during tax filing and protection during audits.
Why Professional Crypto Tax Documentation Matters
The IRS estimates billions in unreported cryptocurrency gains. Enforcement is increasing dramatically year over year.
Failure to report crypto gains can result in penalties up to 40% of unpaid taxes, plus interest and potential criminal charges.
Tax authorities have become increasingly sophisticated in tracking cryptocurrency. The IRS has issued over 10,000 warning letters to suspected non-compliant crypto holders. Major exchanges are required to report customer transactions, and blockchain analysis tools allow authorities to trace activity across wallets. The question is not whether tax authorities can find unreported crypto activity—it's when.
Proper documentation protects you. With comprehensive records showing exactly what you did, when, and how you calculated your taxes, you can file with confidence and respond to any audit with clear evidence. Our reports provide this protection, documenting your complete cryptocurrency tax position with the detail and accuracy that satisfies both you and any tax authority.
What Our Tax Documentation Includes
Comprehensive records covering all cryptocurrency tax scenarios
Complete Transaction History
Every buy, sell, swap, and transfer documented with timestamps and USD values at the time of transaction across all chains.
Cost Basis Tracking
Track acquisition costs across multiple wallets and exchanges using FIFO, LIFO, or specific identification methods for accurate gain/loss calculations.
DeFi Activity Documentation
Document staking rewards, yield farming income, liquidity provision, lending interest, and all other DeFi protocol interactions.
NFT Transaction Records
Track NFT purchases, sales, royalties, creator income, and minting costs for complete art and collectible reporting.
Multi-Exchange Consolidation
Consolidate activity across centralized exchanges, DEXs, and self-custody wallets into unified comprehensive reports.
Audit-Ready Format
Reports formatted to satisfy IRS, HMRC, ATO, and other international tax authority documentation requirements.
Historical Price Data
Accurate fair market values at time of each transaction using multiple price oracle sources for defensible valuations.
Cross-Chain Tracking
Track transactions across bridges and multiple blockchains with proper cost basis continuity.
Taxable Events We Document
Complete coverage of cryptocurrency tax triggers
Capital Gains/Losses
- • Crypto-to-crypto swaps
- • Crypto-to-fiat sales
- • NFT sales and trades
- • DeFi liquidations
- • DEX trades
- • Margin trading profits/losses
- • Futures and options settlements
Income Events
- • Staking rewards
- • Mining/validator income
- • Yield farming rewards
- • Airdrops received
- • NFT royalties earned
- • Lending interest
- • Play-to-earn gaming income
Special Situations
- • Hard fork tokens
- • Token migrations
- • Rebasing tokens
- • Wrapped token conversions
- • Cross-chain bridges
- • Lost/stolen crypto (theft losses)
- • Charitable donations
Real-World Tax Documentation Scenarios
How we help different types of cryptocurrency users
Long-Term Investor Tax Filing
A client held Bitcoin and Ethereum across multiple wallets since 2017, with numerous transfers between addresses. We reconstructed the complete history, traced cost basis through all movements, and provided documentation showing substantial long-term capital gains with proper holding period classification—resulting in significant tax savings through LTCG rates.
DeFi Yield Farmer Documentation
An active DeFi user had thousands of transactions across Uniswap, Aave, Compound, and Curve. We documented every LP entry/exit, tracked impermanent loss, categorized farming rewards as income, and provided a clear summary that their CPA could use directly—turning tax season from a nightmare into a non-event.
IRS Audit Response
A client received an IRS audit notice questioning their cryptocurrency reporting. We prepared comprehensive documentation of all transactions, cost basis calculations, and methodology explanations. The clear evidence and professional presentation resulted in the audit closing with no changes to the original return.
NFT Creator Income Documentation
An NFT artist earned substantial income from primary sales and ongoing royalties across multiple marketplaces and chains. We documented all mint revenue, tracked royalty payments, calculated cost basis for any NFTs received in trade, and provided complete income documentation meeting self-employment reporting requirements.
Who Needs Crypto Tax Documentation
Professional documentation for every type of cryptocurrency user
Individual Investors
Whether you're a HODLer, swing trader, or day trader, you need accurate documentation of all taxable events for proper reporting and audit protection.
DeFi Users
Yield farmers, liquidity providers, and lending protocol users face especially complex tax situations requiring expert documentation.
NFT Collectors & Creators
NFT transactions—both collecting and creating—have specific tax implications that require proper documentation of cost basis and income.
Crypto Businesses
Businesses accepting crypto, paying in crypto, or holding treasury need detailed records for corporate tax compliance and financial reporting.
Tax Professionals
CPAs and tax attorneys serving crypto clients get expert-prepared documentation they can rely on, saving hours of work and ensuring accuracy.
Audit Targets
If you've received an audit notice, professional documentation is essential for defending your tax position and achieving the best outcome.
Our Tax Documentation Process
Scope & Addresses
Share all wallet addresses, exchange accounts, and tax years that need documentation. We confirm scope and timeline.
Data Extraction
We extract and consolidate all transaction data across your complete crypto holdings using blockchain data.
Classification
Transactions are categorized by type: trades, income, transfers, gifts, etc. with proper tax treatment identification.
Calculation
Cost basis and gains/losses calculated using your chosen accounting method with full audit trail.
Report Delivery
Receive comprehensive reports with transaction details, summaries, and formats compatible with tax software.
Tax Documentation Results
Our tax documentation has supported successful filings and audit responses across the US, UK, Australia, Canada, Germany, and 30+ other jurisdictions. Clients consistently report peace of mind from having professional, defensible documentation.
Cryptocurrency Tax Compliance FAQ
What tax years can you cover?
We can provide documentation for any year since the blockchain's inception. Historical data is always available on-chain, so there's no limitation on how far back we can go. This includes early Bitcoin transactions, historical Ethereum activity, and all other supported blockchains from their genesis.
Do you provide Form 8949 data?
Yes, we provide complete Form 8949-ready data for US taxpayers, including acquisition dates, disposal dates, cost basis, proceeds, and calculated gains/losses. We also support equivalent forms for UK (SA108), Australia (CGT schedule), Canada, Germany, and other major jurisdictions.
How do you handle DeFi and yield farming?
We document all DeFi activity comprehensively including: staking rewards (treated as income), LP token transactions, yield farming rewards, lending interest, borrowing collateral movements, liquidations, and governance token distributions. Each reward transaction is captured with its USD value at the time received.
Can you help respond to an IRS or tax authority audit?
Absolutely. We specialize in audit defense documentation that provides complete transaction history with clear provenance and methodology. Our reports include detailed explanations suitable for auditors unfamiliar with cryptocurrency, cost basis calculation methodology, and supporting evidence for all claimed positions.
What cost basis methods do you support?
We support all major accounting methods including FIFO (First In, First Out), LIFO (Last In, First Out), HIFO (Highest In, First Out), and Specific Identification. We can calculate using multiple methods so you and your tax professional can choose the most advantageous approach.
How do you value cryptocurrency for tax purposes?
We use aggregated price data from multiple reputable sources including major exchanges and price oracles to determine fair market value at the time of each transaction. Our methodology is documented and defensible in case of tax authority questions.
Do you work with CPAs and tax professionals?
Yes, we frequently work directly with CPAs, tax attorneys, and enrolled agents. We can provide data in formats compatible with major tax software (TurboTax, TaxAct, etc.) and can communicate directly with your tax professional to answer technical questions.
What about airdrops, forks, and hard forks?
We document airdrops and fork tokens with their fair market value at time of receipt (taxable income in most jurisdictions) and track their cost basis for future sales. We handle complex scenarios like wrapped tokens, rebasing tokens, and protocol migrations.
Can you help with amended returns?
Yes, we can prepare documentation for amended returns covering prior years. If you discovered unreported crypto activity or need to correct previous filings, we can document the transactions and calculate the adjustments needed.
What if I've lost access to exchange records?
Blockchain data is permanent and doesn't require exchange cooperation. Even if an exchange has closed, you've lost login credentials, or records are otherwise unavailable, we can reconstruct your complete transaction history from on-chain data alone.
Need Cryptocurrency Tax Documentation?
Get comprehensive, audit-ready documentation of all your cryptocurrency transactions. Protect yourself with professional records that satisfy tax authorities.
Free consultation • No obligation • Response within 24 hours