Cryptocurrency Tax Compliance
Multiple wallets, exchanges and protocols need one defensible tax story.
Bette Hochberger’s Web3 practice works with cryptocurrency investors and businesses on basis, gains, losses, mining, staking, payments, digital-asset bookkeeping and tax planning, without treating crypto as if it were a standard brokerage account.
Crypto CPA firm
Digital-asset reporting is getting more standardized. The underlying data can still be messy.
Form 1099-DA adds broker reporting, but complete wallet history, basis and off-platform transactions still matter.
Bette Hochberger, CPA, CGMA was following Bitcoin in 2014, well before cryptocurrency tax work became a mainstream specialty. As an MIT alumna and technophile, she built a practice comfortable with the technology while keeping the accounting grounded in conventional tax and financial reporting.
The firm works with digital-asset activity across Bitcoin and other cryptocurrencies, supports multiple data-extraction and reconciliation tools, has worked as a strategic partner with TaxBit, and has been active in the MiamiTech and Web3 community. That experience matters because an investor’s activity can be spread across exchanges, cold storage, self-custody wallets, staking platforms, decentralized protocols and business accounts.
The current reporting environment is also changing. Brokers began issuing Form 1099-DA for covered digital-asset dispositions, and the IRS continues to expand digital-asset reporting guidance. Taxpayers still have to report all taxable digital-asset income, gains and losses whether or not a broker statement captures the full history.
Cryptocurrency tax compliance
Every transaction needs the right classification before software can calculate the right answer.
Sales, swaps, payments, rewards and self-transfers do not all belong in the same tax bucket.
Gain + loss reporting
Reconcile proceeds, basis, holding period and taxable dispositions for digital assets held as capital assets and prepare support for Form 8949 and Schedule D.
Mining + staking income
Identify rewards and other digital-asset income separately from later capital gains or losses, with fair-market-value and basis records that carry forward.
Crypto payments
Businesses accepting crypto for goods or services need to record income when received and track the digital asset afterward so later dispositions are not missed.
Outsourced Accounting ↗Reconstruction + cleanup
Repair incomplete prior-year histories by matching wallet transfers, exchange data and missing basis before filing, amending or responding to an IRS issue.
IRS Representation ↗Mining, staking + validation
Rewards can create income before the asset is ever sold.
Mining and staking are different technologies, but both can create digital-asset income that needs to be valued and recorded. The tax file should capture when the taxpayer obtains control of the reward, its U.S.-dollar value and the resulting basis for any later disposition.
Business mining operations can also involve equipment, electricity, software, facilities and other operating expenses. Proof-of-stake validators and businesses running nodes may have a different cost structure, but they still need accounting that separates business income and expense from later asset gains and losses.
The IRS’s current digital-asset guidance specifically addresses mining and staking activity. That makes contemporaneous records more valuable than trying to reconstruct hundreds or thousands of rewards at year-end.
IRS Digital Assets ↗
Rewards + basis
The income event and the later disposition are separate steps.
Reward history should establish both the income reported now and the basis used when the asset is sold later.
Crypto inside a business
Digital assets do not replace normal accounting controls.
A Web3 company still needs books, revenue recognition, payroll and usable financial statements.
When a business accepts cryptocurrency for payment, the receipt can create ordinary revenue based on the fair market value of the asset received. Holding that crypto afterward creates a separate asset position that can generate a gain or loss when it is later spent, sold or exchanged.
Businesses may also pay vendors or contributors in crypto, hold NFTs on the balance sheet, participate in DAOs or maintain treasury assets across multiple wallets. Those activities should be integrated into the normal accounting system rather than left in a spreadsheet that only appears at tax time.
For founders, the crypto tax file also intersects with entity structure, estimated taxes, payroll, fundraising and cash-flow planning. The right reporting system should support the business decision, not merely survive the year-end return.
Bitcoin + cryptocurrency posts
Current digital-asset reporting is worth staying ahead of.
Recent guidance from Bette on mining taxation, IRS tracking and long-term crypto strategy.
Demystifying Crypto Mining Taxation for Entrepreneurs
Tax reporting, deductions and recordkeeping for cryptocurrency mining businesses.
Read the article ↗How the IRS Tracks Crypto Transactions
How digital-asset reporting reaches the IRS and why complete records remain important.
Read the article ↗Tax Strategies for Long-Term Crypto Holders
Planning considerations for investors with significant digital-asset appreciation.
Read the article ↗Frequently asked questions
Cryptocurrency tax questions usually become easier after the wallet history is clean.
General information only. Digital-asset treatment depends on the transaction, taxpayer and business facts.
One clean ledger is easier than four disconnected exchange reports.
Bring the wallets, exchanges, prior crypto reports and the next transaction you are considering. We can map the cleanup, filing and planning work.
Put 15 Minutes on the Calendar ↗