April 17, 2026
Crypto Tax Season is Entering a New Phase
Crypto tax is entering a new phase. Read all about what that means and what changes await you right here.
Audits
Blockchain
Crypto Tax
Digital Assets
Legislation
This isn’t just another filing year: 2025–2026 marks a structural shift in how digital assets are reported.
Reporting is no longer just about trades. Now, staking rewards, DeFi activity, token migrations, wrapped assets, and even bankruptcy recoveries like Celsius all feed into the same reporting picture. As a result, small gaps that once felt harmless tend to show up later as much bigger problems.
Here’s what has changed.
Wallet-level accounting (effective Jan 1, 2025)
Crypto must now be tracked by individual wallets or exchanges, rather than treated as one blended pool.
Safe Harbor Allocation Plan
Your 2024 snapshot became the reference point for all future reporting.
If allocations weren’t handled correctly, reconciliation becomes more difficult over time.
If allocations weren’t handled correctly, reconciliation becomes more difficult over time.
Form 1099-DA (Starting 2026)
Brokers will begin reporting transactions directly to the IRS.
Many forms are expected to show proceeds without cost basis, meaning that incomplete records can overstate taxable gains.
Many forms are expected to show proceeds without cost basis, meaning that incomplete records can overstate taxable gains.
Celsius and Other Crypto Bankruptcy Payouts
These distributions affect basis, future gains or losses, and audit exposure.
They are not tax-neutral events, despite what your intuition might be saying.
They are not tax-neutral events, despite what your intuition might be saying.
The Audit Environment is Tightening
The IRS and CRA are investing heavily in blockchain analytics and data matching.
Reporting gaps don’t disappear — they compound.
Reporting gaps don’t disappear — they compound.
In circumstances like these, filing early helps you:
- Rebuild accurate wallet histories
- Correct misclassified transactions
- Preserve cost basis
- Reduce audit risk
- Avoid last-minute reporting errors
No panic. No urgency tactics.
Just clean records and defensible reporting.
Just clean records and defensible reporting.
Crypto taxes are no longer optional bookkeeping — they’re financial infrastructure.
If there are unresolved gaps, the cost of ignoring them grows every year.
Prepare now, not when a notice arrives.
Schedule your crypto tax review here: https://dacfo.com/contact-us
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