The core questions to ask a crypto tax CPA cover how they reconstruct missing cost basis, reconcile multiple wallets and exchanges, classify wallet transfers, and report staking and airdrop income. Strong answers also address entity ownership through trusts and LLCs, use of Form 8949 and Form 1099-DA data, and which records to clean up before tax season.
A crypto tax CPA is an accountant who specializes in applying tax rules to digital-asset activity. In the United States the IRS generally treats digital assets as property, so most dispositions are taxable events that require a cost basis and a holding period. The right questions help you judge whether a CPA can defend those figures if records are incomplete. For the broader picture of how this fits a managed portfolio, see what crypto wealth management involves.
Questions
Use these as a structured checklist when you interview or brief a candidate. Each question maps to a place where crypto returns commonly go wrong.
- What crypto tax records do you need? Listen for wallet addresses, exchange exports, and on-chain transaction history rather than just year-end summaries.
- How do you handle missing cost basis? A defensible answer describes documented assumptions and a reconstruction method, not a single guessed number. See how to reconstruct crypto cost basis.
- Can you reconcile multiple wallets and exchanges? Ask how they match transfers across venues so the same coins are not double-counted.
- How do you classify wallet transfers? A move between your own wallets is generally not a taxable disposition, but it still affects basis tracking.
- How do you report staking rewards? Staking income is generally taxable when received; ask how they value it and track the new basis.
- How do you report airdrops? Confirm how they determine fair market value and the date income is recognized.
- Can you support trusts and LLCs? Entity ownership changes who files and how; see trust structures for crypto wealthy individuals and should I put my crypto in a Wyoming LLC.
- How do you use Form 8949 and Form 1099-DA data? Ask how they reconcile broker-reported figures against your own records, since the two can differ. See what Form 1099-DA is.
- What assumptions will be documented? Documented assumptions are what let a position be defended if it is later questioned.
- What should be cleaned up before tax season? A useful answer flags gaps now, while there is time to gather records.
Related Questions
Do I need a crypto-specialist CPA or will any CPA do?
It depends on the facts. Many digital-asset issues, basis across self-custodied wallets, staking, and airdrops, sit outside routine tax practice, so experience with on-chain data generally matters. Confirm specifics rather than assuming a credential alone covers crypto, and consult a qualified tax professional.
What records should I gather before the first meeting?
Generally, complete wallet addresses, full exchange transaction exports, and any prior returns reporting digital assets. The more complete the source data, the less a CPA has to reconstruct under assumptions.
Does a 1099-DA from a broker mean my return is already correct?
Not necessarily. Form 1099-DA reports what a broker observed, which may not reflect transfers, self-custody activity, or original cost basis. Treat it as one input to reconcile against your own records, not a finished return.
Sources
Compliance Note
This article is educational and does not provide legal, tax, accounting, investment, or custody advice. Tax questions should be reviewed with qualified tax professionals.