r/CryptoTax • u/riddleadmiral • 2d ago

Crypto tax firm still not done with reconciliation for US taxes

I've been working with a tax firm recommended on Summ and other crypto tax software websites. For over several months.

Unfortunately I am not confident they will be able to meet the October 15 deadline as originally estimated.

What are my options? Should I file with what I have and then hire someone else to fix things? I have worked with crypto tax firms before, so this experience has been shocking to me.

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u/JustinCPA 2d ago

Justin from Summ here. Sorry to hear this. If they aren’t done in time, you’ll could do one of two things:
1. File late, with potential penalties and interest
2. File with what you have and then amend. You’ll have penalties and interest as well if you underreported your income

Separately, it would be great to know which firm you’re working with, feel free to DM me directly.

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u/riddleadmiral 2d ago edited 2d ago

Thank you for the response.

I will likely do number 2. Did some rough calculations and I should be fine with safe harbor I think? (Lucky otherwise would have been even more nightmare situation)

Sure I will DM you.

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u/CountryHot6654 1d ago

I gotten help though my go to AI tech person ( luckily he is family and took him approx 35-40 hours to convert and consolidate everything (28000 plus transactions through 2018)) and import everything to TurboTax. I wished he did that as a business but he is busy.Try to find some IT person to convert and import cost basis(Coinbase won’t do it so forget it if you had coinbase pro or GDAX, coinbase pro will only provide statements which is a nightmare if you are a day trader like me.

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u/riddleadmiral 1d ago

Interesting, maybe I should start a SaaS for this. Since I work in AI tech lol

Appreciate the advice. But my transactions are lot more complicated than coinbase pro/GDAX

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u/PsychologicalBit803 1d ago

Is there a software for futures crypto/stock trading that can track every trade and produce reports? I need something hopefully simple that will work with CSV files from various exchanges like Blofin, Zoomex, Weex etc.

It’s really surprising the groups I’m in with full time day traders that manually keep up with profitability. I need performance reports I can produce at anytime quickly and past performance.

I also need a crypto tax firm. Planning to trade full time and have a few questions about doing it under a LLC or continue as an individual. Also trying to plan out taxes.

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u/riddleadmiral 1d ago

I usually ask AI to write a script, to reformat CSVs from platforms into tax software accepted formats.

Typically I ask 3 models to do it independently then have them compare until they agree on consensus result.

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u/PsychologicalBit803 1d ago

Yeah I’m not interested in trying to create something and honestly have no idea about doing any of that. Just wanted to buy software or a subscription.

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u/riddleadmiral 1d ago

likely not possible with current solutions

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u/PsychologicalBit803 1d ago

Yeah it’s surprising with all the trading tools out there. Nobody seems to track their performance reliably which I can’t imagine.

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u/[deleted] 1d ago

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u/riddleadmiral 1d ago

I actually believe in their reconciliation so far. Just not sure whether they will complete it and give necessary advisory.

Also this reads like an ad for KoinX.

I'm purposely not naming any tax recon services here.

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u/chainglance_cm 1d ago

File by October 15 no matter what. Failure-to-file penalties are 5% of the unpaid tax per month, way worse than the 0.5% for paying late, and there's no second extension.

The usual move is filing with the best numbers you have and amending with a 1040-X once the firm finishes. Lean conservative on anything unresolved, like using zero cost basis where you can't prove it yet. Overpaying now and getting it back on the amendment beats underreporting and risking a 20% accuracy penalty.

Ask the firm today for whatever they've already reconciled, even a partial draft. If you want a rough number in parallel, tax software like Bitcoin.tax, Koinly or CoinTracker can spit out a draft 8949 from your exchange and wallet data in a day or two. It won't be perfect, but it's a solid base to file on and fix later.

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u/Arman_CountOnSheep 15h ago

I’d start by checking your crypto tax software to see how much is still unreconciled and asking the firm for a specific breakdown of what’s outstanding.

Depending on the remaining issues, you may be able to generate reports using the information you have, make some final adjustments, and file, then amend later once a proper reconciliation is complete. One example to discuss with your CPA is using $0 basis where acquisition costs genuinely can’t be established. Definitely ask your CPA or accountant whether they’re comfortable with that approach for your situation if you have one.

There’s still time before October 15. An experienced crypto tax accountant may be able to finish many cases before then, even starting from scratch, depending on transaction volume, data availability, and their capacity. The underlying issue matters: interpreting DeFi activity or fixing ordinary transactions is very different from trying to recover missing records from a defunct exchange. So like I mentioned before start by finding out what is causing the delay.