Form 1099-DA entered the reporting landscape for tax year 2025 as a legitimate step toward digital asset tax transparency. What it is not, and what its design never intended it to be, is a foundation for reconciliation. This analysis covers the structural limits of broker-issued information returns, the correct source-first approach, and the data risks of uploading 1099-DA files to consumer platforms.
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When the first wave of Form 1099-DA reporting hit taxpayers, the early conversations were predictable. Clients called their accountants with screenshots, totals circled in red, and a single question that sounded almost too simple for how anxious it felt.
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Why crypto reporting is now a data engineering problem On Jan 8, 2026, the IRS kicked off filing season messaging and made a point of calling out Form 1099-DA. That is the tell. Digital asset reporting is moving from “new rule” to “operational reality.” This year, more teams are going to learn the hard way […]
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Digital assets are no longer rare or optional. From high-net-worth portfolios to corporate treasuries and estate planning, they are now part of the financial mainstream. For accounting firms and financial professionals, this creates both an opportunity and a challenge: how do you serve clients with complex digital asset footprints without taking on the cost and […]
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As the January 1, 2025 deadline mandating crypto brokers to issue Forms 1099-DA approaches, the industry faces a massive compliance burden that most are unprepared for. Even the estimated 8 billion forms could be too low once tax lot reporting kicks in. Brokers must brace for an onslaught of customer inquiries once these new tax forms start arriving. The 1099-DA […]
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The IRS unveiled the much-anticipated draft of Form 1099-DA on April 18th. It’s crucial that any entity falling under the broker category, as per the proposed rules of August 2023, comprehends the reporting obligations. With the reporting requirement set to kick in on January 1st, 2025, there are only eight months to devise a viable […]
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NODE40, a leading provider in the analytics of financial transactions from the blockchain, is pleased to announce that Norman Hannawa has joined the company as Head of Tax and Accounting Solutions. Mr. Hannawa is a tax attorney who brings a wealth of experience in tax and accounting, specializing in digital assets. He has over 20 […]
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Swapping, zapping, farming. Smart contracts, NFTs, wormholes. Welcome to the world of cryptocurrency accounting. Not only is the vocabulary often foreign, but the underlying technology is evolving so rapidly that it can take time to remain informed. If your clients engage with cryptocurrency, you need to support them or risk losing business. If you don’t […]
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The report discusses the current state of the blockchain economy and provides a primer on key blockchain technologies and use cases. “Interest in cryptocurrencies has never been higher.” – FT Partners report: The Blockchain Economy, April 2022 FT Partners, a leading investment banking firm focused exclusively on the financial technology sector recently included NODE40 in […]
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You made it! Another tax year in the bag — or at least deferred until October. Now you can take the time to think about strategy. Tax strategy and tax liability are two sides of the same coin. An effective tax strategy can mitigate one’s tax liability. With cryptocurrencies, the difficulty lies in understanding the […]
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The IRS is about to make an example out of cryptocurrency tax avoiders – don’t let it be you. This year, the IRS will ask you if you had cryptocurrency in 2019 and it’s going to make a lot of people nervous. Until now, those choosing to report taxes on crypto were somewhat shielded from […]
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A lot of people are, but you don’t have to be one of them this tax season. Over the last five years, the customer support team at NODE40 has been fielding all sorts of questions from customers and reporters, so we tailored our self-service tax platform to help you make sense of your cryptocurrency tax […]
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NODE40, a leader in cryptocurrency tax calculation, announced today its SMART algorithm (Simple Multi-Account Reconciliation Technology), designed to track and match the cost basis of cryptocurrency transactions is now patent pending with the US Patent and Trademark Office. “The IRS recognizes that a lot of taxpayers have trouble explaining cryptocurrency transactions on their taxes and […]
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Albany, NY, October 9, 2019 – NODE40, the premier cryptocurrency cost-basis tracking company, today announced the company has successfully completed the requirements for a Service Organization Control (SOC) 1, Type I Audit covering its Balance product. The audit was undertaken by Armanino LLP. “Completing a SOC 1 audit provides our customers and partners the assurances […]
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You’re probably receiving emails from other crypto tax platforms filled with claims about how they can save you money on taxes. They claim to have some optimized way to crunch your numbers, or they allow you to pick a minimization strategy when you import your data. If your goal is to try and cheat the […]
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NODE40, developers of NODE40 Balance, an industry-leading blockchain accounting platform has announced a partnership with global tax software leader Sovos to offer an all-inclusive suite of Tax & Compliance Automation services for Virtual Asset Service Providers. NODE40 and Sovos are coming together to provide Virtual Asset Service Providers compliance and protection from regulatory risk. Sovos is the […]
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If you are working as an accounting professional at a virtual asset service provider (VASP), it can be hard to keep up with the complexities involving all the new assets that seem to enter the market on a daily basis. NODE40’s CTO Sean Ryan recently gave a presentation at the Crypto Tax Workshop hosted by […]
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Different corporate compliance efforts and a rapidly evolving cryptocurrency industry have outpaced the IRS guidance, leading to American taxpayers receiving notices like the CP2000 from the IRS of massive underreporting. Join crypto tax thought leaders from Sovos and NODE40 as they discuss why users of virtual currencies receive underreporting notices from the IRS and how you can fix the […]
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We have been supporting ERC-20 tokens for as long as we have supported importing transactions from exchanges. But what you may not know is that we also support the creation of ledgers for ERC-20 tokens in a contract. If you have ERC-20 tokens like BAT that you self-custody, then you’ll want to use NODE40 Balance to calculate your income, […]
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The next filing deadline is right around the corner. If you have cryptocurrency trading activity to include on your tax return, preparing as early as possible is a very sensible approach. While not an impossible task given the proper tools, organizing and understanding your crypto tax liabilities does require some thought. The level of complexity […]
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While the buzz around Bitcoin is well and truly reaching papers, airwaves, and TV screens across the globe, there’s something far less visible, but far more exciting at play. I’m talking about the IRS’ hunt for Bitcoin billionaires, or more specifically, individuals that have forgotten to, inadvertently, or deliberately flouted their tax reporting obligations. It’s […]
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While independence from government intervention was one of the key tenets that Bitcoin was built on, the majority of cryptocurrencies now operate under far more scrutiny from the authorities than many early pioneers would have hoped for. Unsurprisingly, one of the most interested government authorities is the IRS. The tax agency has noticed the extraordinary […]
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This is a TIL story. It’s the story about the power of a platform to bring clarity to cryptocurrency transactions. It’s a story brought to light by NODE40 Balance. Earlier this year, we had a customer come to us and ask if we could help make sense of his Coinbase/Coinbase Pro transactions so he could […]
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