TaxBit can help organize digital-asset transactions, but software output is only as reliable as the imported accounts, classifications and basis data. This workflow focuses on reconciliation rather than assuming an automated report is complete.
Gather source records
Download raw CSV files from every exchange and list every self-custody wallet. Preserve original exports before editing. Record accounts that closed during the year and any broker forms received.
Connect and reconcile
- Add exchanges through the supported connection method.
- Add public wallet addresses where supported.
- Import historical files for unsupported sources.
- Match transfers between owned accounts.
- Investigate missing basis, duplicate imports and unmatched deposits.
Review classifications
Swaps, staking rewards, gifts, internal transfers, bridge activity and payments may require different treatment. Do not relabel an item merely to remove a warning. Keep notes and transaction evidence for every manual adjustment.
Compare with official forms
For U.S. taxpayers, Form 1099-DA and other broker records may not contain every fact needed to calculate basis. The IRS says taxpayers must report digital-asset income, gains and losses whether or not they receive a form. Compare forms against the complete ledger.
Quality-control tests
- ending balances match actual accounts;
- internal transfers do not create artificial income;
- fees are represented consistently;
- income values use a documented price source;
- opening and closing basis reconcile.
Export an audit package
Save the final forms, gain/loss detail, income report, raw inputs and adjustment log. Have a qualified tax professional review complex DeFi, staking, entity or cross-border activity.
Conclusion
Using TaxBit effectively is a data-reconciliation project. Complete sources and documented corrections matter more than pressing the final export button.