IRS Form 1099-DA is reported by exchanges under Internal Revenue Code Section 6045(g), but taxpayers must report cryptocurrency gains under Treasury Regulation 1.1012-1(j). If you copy the 1099-DA directly onto IRS Form 8949 without adjustment, your capital gains may be reported incorrectly.In this video, Clinton Donnelly, founder of CryptoTaxAudit, explains:• Why exchange reporting and taxpayer reporting follow different rules• How transferred crypto creates lot-order mismatches• Why 1099-DA proceeds may not reflect your actual cost basis• How to subtract exchange-reported proceeds on Form 8949• How to enter your correct crypto gain summary• How to reconcile reporting without triggering IRS correspondenceThis applies to traders using Coinbase and other exchanges that issue 1099-DA forms.If you traded across wallets and exchanges, this matters.📞 Book a professional crypto tax review:https://www.cryptotaxaudit.com/crypto-tax-consultation

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