Cost of Crypto Tax Preparation 

Cryptocurrency Reporting

Cryptocurrency reporting requires specialized knowledge and careful review. Many accountants do not have sufficient experience with digital assets, particularly where multiple exchanges, wallets, or income types are involved.

Cryptocurrency reporting is subject to separate fees and is not included in base tax return pricing.

Our approach

The most efficient and cost-effective way to report cryptocurrency activity is through third-party tax software, such as Koinly, which we use as part of our process.

Clients upload their transaction data (trades, staking income, airdrops, forks, etc.) directly into Koinly via CSV files or exchange connections and grant preparer access. We then review the output and incorporate the results into the tax return.

Cryptocurrency reporting is prepared based on data processed through Koinly. Manual trade-by-trade reconstruction or forensic reconciliation is not provided.

Software responsibility and data completeness

Third-party crypto software relies on the completeness of the data provided. Missing cost basis or inaccurate results are most often caused by:

• Exchanges or wallets not uploaded

• Incomplete prior-year history

• API limitations

Clients are responsible for working with the software provider’s technical support to resolve data import or platform-related issues. As tax professionals, we do not provide technical support for cryptocurrency software platforms.

As a general best practice, we recommend uploading CSV files rather than relying solely on APIs, as this provides an audit trail that can be reconciled against generated reports.

Fees for cryptocurrency reporting

Cryptocurrency reporting fees are based on transaction volume and complexity and are quoted after review. As a general guideline:

• Up to 100 transactions: starting at $250

• 101–500 transactions: starting at $400

• 501–1,500 transactions: starting at $600

• Higher volumes or complex activity (DeFi, NFTs, staking across multiple platforms): quoted after review

Crypto reporting is billed in addition to base tax return preparation fees.

Common cryptocurrency items we report correctly

• Capital gains and losses (short-term and long-term)

• Coin-to-coin trades

• Coin-to-fiat trades

• Hard forks and airdrops

• Staking income

• Use of cryptocurrency for goods and services

• Proper reporting on Form 8949 and Schedule D

Example: Common crypto tax question

Question:
“I bought Bitcoin for $10,000 and immediately sold it to purchase another cryptocurrency for $10,000. Is this still a taxable event even though there was no gain or loss?”

Answer:
Yes. The transaction is still a taxable event and must be reported on Form 8949. While the gain or loss may calculate to zero, reporting is required for compliance.

Send me your questions and tax documents and I will get to work for you. 

5 Tips for Choosing a Tax Return Preparer

Your annual physical. Spring cleaning. Flu shots. What do these activities have in common? Just like preparing and filing your taxes, you need to complete them every year. Yet filing your annual tax return can seem confusing or even scary. To make the process easier, many people prefer to work with an expert.

But even if someone else does the math, prepares, and files your tax return with the IRS, you are responsible for everything reported on your return. To avoid careless mistakes or even tax return preparer fraud or misconduct, it’s important to know what to look for – and avoid – when choosing a tax return preparer.

Here are five tips to help you find a qualified tax professional:

1. Do your research. Before the filing deadline, research potential tax return preparers to determine if they match your personal requirements (I myself am an expat living in Germany and a licensed Enrolled Agent-very rare in Deutschland), are responsive to your questions, and you’ll be able to contact them after your tax return is filed.

The IRS has a directory of preparers with certain kinds of credentials, such as enrolled agents. IRS.gov (search Hartney, Germany, Enrolled Agent, 65812 area code).

Check with the Better Business Bureau to see if the preparer has had complaints filed.

You can also check with associations to see if the preparer has received any disciplinary actions, and for the status of the preparer’s license:

• For Certified Public Accountants (CPAs) - State board of accountancy

• For attorneys - State bar association

• For Enrolled Agents - IRS Office of Enrollment

2. Get technical. Be sure the preparer’s qualifications meet your needs. Every professional tax return preparer must have a PTIN (Preparer Tax Identification Number). You can decide if you need an enrolled agent, a Certified Public Accountant, or an attorney who can represent taxpayers before the IRS in situations like audits, collection actions, and appeals.

3. Watch out for scams. Avoid any preparer who claims they can obtain a larger refund than other preparers, guarantees a refund, or bases their fees on a percentage of your refund. Also keep away from preparers who don’t offer follow-up support after tax season. Credible tax professionals are available year-round.

4. Stand your ground. If a preparer tries to persuade you to say something on your tax return that’s not true in order to secure a bigger refund, find another preparer. Also avoid any preparer who pressures you into buying additional services, asks you to sign a blank tax return, or requires that your tax refund be sent to a bank account under their control.  

5. Be diligent. Make sure your preparer gives you a copy of your completed tax return that was filed, and that it has the preparer’s signature and Preparer Tax Identification Number (PTIN). This will help protect your tax refund and guard against fraud or misconduct. Keep that signed copy in a safe place.

➤ locations served

Available for all taxpayers in every state and all Expatriates living abroad. 

☎ CONTACT NICHOLAS HARTNEY, EA

nick@genesistaxconsultants.com
and tell me about your situation.

Areas of Practice

https://www.expattaxhelpnearme.com/services-and-fees-overview