Investors holding DeFi tokens across multiple protocols, NFTs from various marketplaces, and assets spread across dozens of wallets face a growing gap between what tax software calculates and what the IRS expects. Automated tools struggle to establish cost basis for cross-chain transfers, airdrops, staking rewards, and complex DeFi transactions, which can trigger false sales or misclassification errors. The consequences of inaccurate reporting are severe: penalties range from 20 to 75 percent of underpaid taxes, and legal fees can exceed ten thousand dollars in case of audit. Signs indicating the need for professional help include holding assets across five or more platforms, regular participation in DeFi protocols, or frequent NFT trading. Professional preparation ensures exhaustive data gathering, manual review of every transaction, and documented reports defensible before the IRS.
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