Your Crypto Tax Software Says You Owe $140,000. Your Gut Says It's Wrong. Here's What That Costs You.
By Clinton Donnelly, CEO, Founder | CryptoTaxAudit
You're staring at the number on your screen.
$140,000 in crypto gains.
You spent hours importing wallets. Matching transactions. Fighting with CSV files. And now the software says you owe the IRS roughly $35,000 to $50,000, depending on your bracket.
But something feels off.
You didn't cash out that much. You know you didn't.
Your gut says maybe $90,000. Maybe less. But the software won't explain why it's higher. And you can't find the mistake.
That gap? That's not just stress. That's real money you might pay the IRS when you didn't need to.
Let me show you what happened when one trader faced this exact situation.
Guide Sections
- The $140,000 Mistake Most DIY Software Makes
- What Full Service Crypto Gain Calculation Actually Found
- Why DIY Crypto Tax Software Overstates Your Gains
- What Is the Real Cost of DIY Crypto Tax Software?
- When Does Full Service Crypto Gain Calculation Pay for Itself?
- What "Full Service" Actually Means
- Can CryptoTaxAudit Handle Missing Records?
- What Happens If You Just File The Wrong Number
- How to Avoid Overpaying Crypto Taxes
- Frequently Asked Questions About Crypto Gain Calculations
The $140,000 Mistake Most DIY Software Makes
A client called me last year with this problem. He'd used one of the big DIY crypto tax platforms. He's not lazy. He put in hours. Real work trying to get the number right.
The result: $140,000 in gains for 2024.
His gut: No way. Maybe $90,000.
That’s a $50,000 difference.
At a 25% tax rate, that’s $12,500 the IRS keeps that might not be theirs.
Here’s what most people do at this point, they shrug, file it, and pay.
They figure the software knows better than they do.
That’s the most expensive assumption in crypto taxes.
What Full Service Crypto Gain Calculation Actually Found
He came to CryptoTaxAudit for a Full Service Crypto Gain Calculation. This isn't software you click through. This is a forensic accounting team of CPAs and Enrolled Agents manually reconstructing every transaction.
Here’s what we found:
His actual gains? $87,000.
Not $90,000 like he guessed.
Not $140,000 like the software said.
$87,000.
We found $53,000 in overstated gains, including $3,000 in losses he didn’t even know existed.
At his tax rate, that meant he would have overpaid the IRS by roughly $15,000 to $20,000 if he had filed the DIY number.
The service cost: just under $4,000 in his case, based on his trading volume.
We fixed the price upfront. No surprises. The result: he paid less in tax, and the service paid for itself.
Why DIY Crypto Tax Software Overstates Your Gains
These platforms aren't trying to rip you off. They're just not built to optimize. They're not built to minimize your tax bill. They're built to automate calculations.
We optimize for the lowest legal tax bill. That's the difference.
What Is the Real Cost of DIY Crypto Tax Software?
The cost of the service is only one element. The real cost is filing the wrong number.
Estimated savings: $15,000 to $20,000 in reduced taxes.
Each client’s situation is different. The cost depends on trading volume and complexity. We provide a fixed-price quote upfront so you know exactly what it will cost before we begin.
Many clients see similar reductions. Some see significantly more.
Plus, we document everything properly.
Our team uses blockchain analysis to reconstruct missing transactions and justify each calculation.
Numbers backed by forensic accounting work instead of automated algorithms.
That documentation matters if the IRS ever questions your return.
With DIY software, here's what happens: The IRS sends an audit letter. You forward it to your software company. They say "sorry, we don't do audit defense."
You're alone defending numbers you can't explain.
With CryptoTaxAudit's Full Service, at least you have professional documentation backing your return.
But what if you don't want to defend it yourself at all?
That's where Tax Shield comes in.
Tax Shield members get continuous IRS account monitoring. Audit defense. Professional representation for every IRS letter and communication.
The IRS doesn't talk to you. They talk to us.
When Does Full Service Crypto Gain Calculation Pay for Itself?
You don't need this service if you had three trades on Coinbase last year. You might not need it if you stayed on one exchange and never moved crypto off.
You absolutely need it if:
- You traded on multiple exchanges
- You used DeFi protocols
- You moved crypto between wallets
- You have missing transaction records
- You did any staking or liquidity providing
- You have NFT transactions
- Your DIY software is showing gains that feel wrong
- You're looking at a six-figure tax bill
The break-even is simple: if we can reduce your reported gains by $12,000 or more, the service pays for itself.
Most clients see reductions of $30,000 to $100,000 in overstated gains. Some see more.
What "Full Service" Actually Means
When you work with CryptoTaxAudit for crypto gain calculations, here's what happens:
Step 1: Schedule a consultation. We review your situation. Trading volume, exchanges used, missing records, DeFi activity. Takes about 30 minutes.
Step 2: We give you a fixed price quote immediately. No surprises. You know the cost before we start.
Step 3: You send us whatever records you have. Even if they're incomplete. Even if you're missing exchange data. We've never had a client whose situation we couldn't handle.
Step 4: Our forensic accounting team reconstructs your transactions manually using blockchain analysis. We optimize cost basis. We eliminate double-counting. We find losses the software missed. We apply the tax code to minimize your bill legally.
Step 5: Our forensic accounting team finalizes your crypto gain calculations with complete documentation. Every number is reviewed and verified against IRS rules.
Step 6: We provide your crypto gain calculations with complete documentation. Use them to file yourself, give them to your existing CPA, or have us prepare your full return.
That's CryptoTaxAudit's Full Service Crypto Gain Calculation.
Most clients wish they'd done this years ago. The average person spends 20+ hours fighting with DIY software, only to file numbers they're not confident about.
Our clients sleep better knowing the numbers are right.
Ready to stop second-guessing your crypto taxes? Schedule a consultation. We'll review your situation and give you a fixed price quote in 30 minutes. No surprises. No obligation.
Can CryptoTaxAudit Handle Missing Records?
Yes.
This is the most common question I get.
"I don't have all my transaction history. Can you still help?"
Here's the truth: almost no one has perfect records.
Exchanges delete old data. Wallets don't export correctly. You forgot about that one trade in 2021.
We specialize in messy situations.
We use blockchain forensics. We reconstruct transactions from partial data. We work with what you have.
The IRS understands that you made a good-faith effort with the best available data.
When CryptoTaxAudit certifies that effort, it carries weight with the IRS.
A DIY software report that says "incomplete data" does not.
What Happens If You Just File The Wrong Number
Some people file the DIY software number even though they know it's wrong. They figure the IRS won't check. Sometimes they're right. Most returns don't get audited.
But here’s what you need to know:
The IRS is getting better at tracking crypto.
Form 1099-DA starts in 2026. That means exchanges will report your transactions directly to the IRS.
They’ll match what you report to what the exchange reports.
If there’s a gap, you get a letter.
And if the IRS thinks you underreported income, they assess penalties and interest going back years.
But if you overreported income because your DIY software was wrong?
The IRS keeps your money.
They don’t send refunds for overpayments you didn’t catch.
You pay now, or you fight later.
Professional crypto gain calculation is cheaper than both.
How to Avoid Overpaying Crypto Taxes
If your crypto tax software is showing gains that feel wrong, they probably are.
DIY platforms optimize for ease of use. Not for your tax bill.
A CPA optimizes for your tax bill. That's the job.
The math is simple: if you're looking at a crypto tax bill over $15,000, the professional gain calculation pays for itself.
Here's what to do:
Schedule a consultation with CryptoTaxAudit. We'll review your situation, tell you what's possible, and provide a fixed-price quote.
No obligation. No surprise fees.
We've handled every type of crypto situation. Missing records. DeFi. NFTs. Multiple exchanges.
We push through it.
And if you want IRS representation and audit defense, Tax Shield has you covered.
Frequently Asked Questions About Crypto Gain Calculations
Q: How much does Full Service Crypto Gain Calculation cost?
A: We provide a fixed-price quote upfront after reviewing your situation. The cost typically saves you 3x to 5x in reduced tax bills.
Q: Can you handle my situation if I'm missing transaction records?
A: Yes. We specialize in incomplete records. We use blockchain forensics and work with partial data to reconstruct your transaction history. We've never had a client whose situation we couldn't handle.
Q: How is this different from DIY crypto tax software?
A: DIY software gives you a number using automated matching. We give you the right number using forensic accounting team review and tax code optimization. DIY software won't defend an audit, we provide professional documentation you can stand behind.
Q: How long does Full Service Crypto Gain Calculation take?
A: Depends on two things: how fast you get us your data, and how complex your portfolio is. We'll give you a realistic timeline when we review your case.
Q: What if my DIY software shows $50,000 in gains but I think it's wrong?
A: Schedule a consultation. We'll review the report and tell you if we can improve it. If we can reduce your reported gains by $15,000 or more, the service pays for itself in tax savings.
Q: Do you prepare the actual tax return or just calculate gains?
A: We provide the crypto gain calculations. You can hand those to your existing CPA or have us prepare your full return for an additional cost. Your choice.
Q: What happens if the IRS audits my crypto return?
A: Tax Shield members don't talk to the IRS - we do. We handle audits, notices, and all IRS communication. Full Service Gain Calculation gives you defensible numbers. Tax Shield gives you someone to defend them.
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