1099-DA + Form 8949: The IRS Match That Triggers Crypto Tax Audits (2026)

Crypto taxes changed in a big way for 2026. In this video, Clinton Donnelly explains how the new 1099-DA works, how the IRS now separates cryptocurrency from other property, and why reporting mistakes are more likely to trigger audits than ever before. 👨‍⚖️ Clinton Donnelly is the founder of CryptoTaxAudit, known as the Crypto Tax Fixer, and a leading expert in IRS crypto audits, tax compliance, and gain calculations. Meet the hosts: Clinton Donnelly → https://www.cryptotaxaudit.com/clinto... Ben Weber (Director of Crypto Analytics) → https://www.cryptotaxaudit.com/ben-cr... What this video covers: What the new 1099-DA reports (and what it doesn’t) How crypto is now separately identified on IRS capital gains forms Why total proceeds must match (or exceed) IRS records FIFO vs specific identification, what actually works in real life Cost basis issues across wallets, exchanges, and hardware wallets Why Safe Harbor does not change ongoing reporting rules The most common mistakes that lead to IRS notices If you’re trading crypto, moving assets between wallets, or filing taxes in 2026, this is required viewing. 📞 Book a private crypto tax consultation 👉 https://www.cryptotaxaudit.com/crypto... 📖 Read the full guides 👉 https://www.cryptotaxaudit.com/blog/1... ⏱️ Chapters 0:00 Intro 0:50 What is Form 1099-DA 2:20 Second big change, new crypto boxes on Form 8949 and Schedule D 4:00 Crypto is uniquely identified in capital gains reporting 4:20 How the IRS may match your reported proceeds to 1099-DA totals 5:00 Where to find your 1099-DA, which exchanges are issuing them 7:20 Missing cost basis, reporting correctly on Form 8949 9:20 Should you provide cost basis to an exchange, and why we say do not 10:30 FIFO vs HIFO or LIFO, when exceptions could apply 12:20 Selling after transfers, how lots and cost basis are determined 14:20 Untangling cost basis across multiple exchanges and wallets 15:10 Multiple platforms, Ledger, and Ethereum examples 15:40 Specific identification, what it is and tax advantages 16:40 Why most tax software struggles with specific identification 22:50 Too many inconsistencies, what to do 23:20 When tax software totals do not match your records 25:10 Gifts, Bitcoin cost basis rules 26:50 Safe Harbor explained clearly 28:30 Next steps #cryptotaxes #cryptotax #1099da #irscryptotaxes #cryptotaxreporting #cryptogains #fifo #costbasis #cryptotaxhelp #cryptotaxaudit Disclaimer: This video is for educational and informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and IRS procedures can change, and every situation is unique. You should consult with a qualified tax professional before taking any action based on this content. Watching this video does not create a client relationship with Clinton Donnelly or CryptoTaxAudit. For personalized guidance, visit 👉 https://www.cryptotaxaudit.com/crypto... 🔍 RELATED SEARCH TERMS: crypto taxes, crypto tax, 1099 da crypto, irs crypto reporting, how to file crypto taxes, fifo crypto taxes, crypto cost basis rules, crypto tax audit, irs crypto form