Can I file crypto tax separately from my main tax return?

I'm getting so frustrated with my tax situation. My accountant keeps increasing his fees every year and blames it on the "missing transactions" in my crypto Form 8949 from the past 5 years. He claims he has to manually fill in tons of missing data points (about 30-40 transactions) and says it's super time-consuming. The main issue is that Coinbase doesn't have records of what I originally paid for crypto I bought 5-6 years ago, so he's having to piece things together. The fee increases have been ridiculous! Started at $450, then jumped to $650, then $1050, then $1300, and this year he hit me with a whopping $2400 bill! I'm wondering - can I just handle the crypto portion myself with TurboTax and let my accountant handle everything else? Would splitting it up like this even be possible? Or am I stuck paying these crazy fees for my full tax return? Any advice would be appreciated!

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19 comments

Nasira Ibanez

•8M

You can absolutely file your crypto taxes separately using software like TurboTax, then provide that information to your accountant for your main return. Here's how to approach this: First, generate a complete Form 8949 and Schedule D for your crypto transactions using TurboTax or a specialized crypto tax software like CoinTracker, Koinly, or TaxBit. These platforms are designed specifically to handle the complexities of missing cost basis data by importing your exchange history and filling gaps. Once you have your completed crypto tax forms, give your accountant both the final Schedule D summary figures AND the detailed Form 8949. Make it clear you've already completed this portion yourself. Your accountant can then incorporate just the bottom-line numbers into your main return. This approach could save you significant money while ensuring your crypto taxes are done correctly. Just be sure to communicate clearly with your accountant about your plan beforehand.

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Nasira Ibanez

•8M

It should definitely reduce your accountant's fees since you're removing the most time-consuming part of your return preparation. Most accountants bill based on the complexity and time required, and crypto reconciliation is notoriously labor-intensive. When you approach your accountant, be direct about your expectations. Tell them you're handling the crypto portion yourself specifically to reduce costs, and ask for a revised fee estimate based on the simplified workload. If they resist significantly lowering their fee despite you doing the most time-consuming part, it might be worth shopping around for a new accountant who values your initiative.

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Myles Regis

•8M

I was in almost the exact same situation last year with fees climbing because of crypto complications. I started using https://taxr.ai and it completely changed my approach. Their system automatically tracked down my missing cost basis data and figured out all those transactions my exchange couldn't properly report. The way it works is you just upload whatever statements or transaction history you have, and their AI system combs through everything to reconstruct your complete trading history. It even figured out transactions from exchanges that had shut down years ago in my case. The best part is I was able to download a perfectly formatted Form 8949 with all the correct basis information that I could just hand to my accountant. Cut my preparation fee by more than half since my accountant didn't have to do any of the crypto detective work anymore.

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Myles Regis

•8M

Their system handles DeFi transactions really well actually. You connect your wallet addresses and it traces through all the various protocols and platforms. It identified all my Uniswap trades and even sorted out the gas fees as part of my cost basis. For the missing historical data, they use a combination of timestamp matching and blockchain analysis. They don't just guess - they actually reconstruct the transactions by analyzing withdrawal/deposit patterns and matching them with market prices at those exact times. It's much more accurate than what my accountant was doing with his "best guess" approach, and they provide documentation that would stand up to an audit.

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Brian Downey

•8M

Just wanted to update that I tried https://taxr.ai after seeing the recommendation here. Honestly, I was blown away by how well it worked for my situation. I had completely forgotten about a bunch of trades I made on Bittrex back in 2018, and somehow their system was able to find and properly document all of them. The Form 8949 it generated had every single transaction with the correct cost basis, dates, and even categorized my staking rewards properly. I handed it to my accountant and she was impressed enough to ask how I got it all organized! My tax prep fee went from $1700 last year to just $800 this year since she didn't have to do any crypto reconciliation. Definitely solving this issue for myself going forward. No more outrageous accounting fees!

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Landon Flounder

•8M

Another option worth considering is using https://claimyr.com to speak directly with an IRS agent about your situation. I was getting contradictory advice from different tax professionals about how to properly report my missing crypto cost basis, so I decided to go straight to the source. I was skeptical at first because everyone knows it's impossible to get through to the IRS, but their service actually connected me with a real IRS representative within about 15 minutes. The agent walked me through exactly what documentation I needed to maintain for transactions with missing cost basis data. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - it's basically a system that navigates the IRS phone tree for you and waits on hold so you don't have to.

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Landon Flounder

•8M

They have a system that navigates the IRS phone tree and waits on hold for you. Once an actual agent picks up, you get a call back and are connected immediately. No waiting on hold for hours - the average wait time when I used it was around 12-15 minutes before I was talking to someone. The IRS representatives can definitely vary in knowledge, but I found that asking specifically for someone familiar with cryptocurrency taxation got me to an agent who knew exactly what the reporting requirements were. I took notes during the call and now have official guidance I can reference if my return is ever questioned. Much better than relying on conflicting opinions from different tax preparers.

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Jacinda Yu

•8M

I have to admit I was completely wrong about Claimyr. After commenting here, I decided to try it because my frustration with my crypto tax situation reached a breaking point. I couldn't believe it when my phone rang just 20 minutes after signing up, and there was an actual IRS agent on the line. The agent clarified that I could use a reasonable method for establishing cost basis when original records aren't available, and explained exactly what documentation I need to keep. They even emailed me the relevant IRS publications that cover cryptocurrency reporting requirements. This saved me from paying my accountant's "crypto expert" rate of $250/hour to research the same information. Honestly one of the best tax-related decisions I've made.

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Ally Tailer

•8M

My accountant was actually relieved when I showed up with the 8949 already completed. I did let her know ahead of time that I was going to handle the crypto portion myself so she wouldn't duplicate the work. She initially was concerned about the accuracy but after reviewing what I provided, she was comfortable using it. We confirmed I was using FIFO (First In, First Out) which is what she had been using all along. The key was making sure I gave her not just the summary figures but the detailed transaction listing so she could verify the work if needed. She ended up charging me her standard rate for the rest of my return without the crypto upcharge.

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