Frequently Asked Questions
Who is this practice best suited for?
Consensus Accounting and Tax, P.C. works with individuals, professionals, and legal teams who need clarity and defensibility in complex cryptocurrency matters.
Our clients most often include taxpayers facing audits or prior year compliance issues, attorneys involved in litigation or asset tracing matters, and individuals or businesses preparing for evolving cryptocurrency reporting requirements.
Clients and professionals who value accuracy, documentation, and a disciplined approach to compliance get the most from working with us.
Do you represent clients in IRS audits or examinations?
Yes. Audit mitigation and representation is a core focus of the practice.
We represent taxpayers facing IRS audits, examinations, and information requests involving cryptocurrency and complex financial activity. Our approach emphasizes clarity and control, responding directly to the issues under review with clear documentation and a disciplined audit trail.
Because our process is not constrained by third party reporting tools, responses are tailored to the facts of each case and the applicable guidance, rather than shaped by software limitations.
What third party crypto tax software do you use?
We do not use third party crypto tax software at all. Our work is performed using our own proprietary methodology built around privacy, data control, accuracy, and defensibility.
Third party tools lock reporting into predefined outputs that may not align with the facts, the law, or the needs of an audit or examination. Instead, transaction data is organized, categorized, and documented based on actual activity, applicable guidance, and professional judgment.
This flexibility is critical when responding to the IRS or supporting legal matters.
Why not just use an online crypto tax calculator?
Online calculators are designed for speed and convenience, not defensibility. They rely on rigid assumptions, incomplete data matching, and standardized outputs that often break down under scrutiny.
Our work begins with a full understanding of your actual transaction history. That allows us to evaluate permissible reporting options, address inconsistencies, and document results in a way that can withstand IRS review.
In most real world cases, especially those involving multiple exchanges, transfers, gifts, donations, or prior year issues, calculator based outputs require adjustment to be reported correctly.
Do you handle prior year cleanup or incomplete records?
Yes. This is one of the most common reasons clients engage the practice.
We routinely work with incomplete, inconsistent, or fragmented records across wallets, exchanges, and platforms. Activity is organized and documented to reconcile reported results with current holdings and historical transactions.
This work is often required for prior year corrections, audit preparation, and high complexity portfolios where precise reconciliation is essential.
Do you work with attorneys or provide litigation support?
Yes. We provide expert support in legal matters involving cryptocurrency, including family law, civil litigation, and asset tracing engagements.
Our work focuses on organizing and explaining complex digital asset activity in a way attorneys, courts, and opposing experts can follow. Engagements are structured to support discovery, expert analysis, and defensible reporting when digital assets are relevant to the case.
Can you coordinate with my CPA or tax preparer?
Yes. We frequently work alongside other CPAs and tax professionals.
In these situations, we provide clear workpapers, reconciliations, and reporting summaries that integrate cleanly into the tax return. Your CPA receives exactly what is needed to report the activity accurately, without unnecessary detail or confusion.
How do you address new cryptocurrency reporting requirements like Form 1099-DA?
We actively monitor and incorporate new cryptocurrency reporting requirements, including Form 1099-DA and related IRS guidance.
Our approach is designed to adapt to evolving rules without requiring a complete redesign of prior reporting or internal processes. For clients focused on compliance, we ensure reporting aligns with current requirements while maintaining consistency and defensibility.
Do I need to track crypto basis wallet by wallet now?
Yes. Beginning January 1, 2025, digital asset basis generally must be tracked separately for each wallet or exchange account rather than using a universal cost basis tracking approach.
We can review your Rev. Proc. 2024-28 safe harbor allocation to ensure your unused basis was properly assigned among your wallets and exchange accounts as of January 1, 2025. Our proprietary reconciliation and reporting process then preserves the basis and acquisition history of those assets as they move between wallets, allowing for accurate wallet-by-wallet tracking and reporting going forward.
If your transition was not fully documented, we can review your transaction history, existing records, and prior reporting to help establish a supportable wallet-by-wallet basis position and bring your records into compliance.
Do you prepare tax returns for clients who do not have cryptocurrency?
Absolutely. Although cryptocurrency taxation is one of our specialties, we provide a full range of tax preparation and accounting services for individuals and businesses, whether or not digital assets are involved.
Every engagement receives the same careful approach: accurate preparation, thorough documentation, and practical advice tailored to your situation. Clients with straightforward returns appreciate that level of care, while clients with more complicated tax matters rely on it.