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Emma - CoinTracker
What is the issue?
Some exchanges include trades where you used a stablecoin to buy another crypto asset (for example, USDC to BTC) in the proceeds on your 1099-DA. CoinTracker's 1099-DA comparison doesn't count these trades, so the 1099-DA step can show a Poor match, with CoinTracker's proceeds lower than your exchange's. Depending on how your exchange reports these trades, the difference can show up in short-term proceeds or in stablecoin proceeds.
These trades aren't missing from your taxes. They're still included in your CoinTracker gains and losses, and they appear on Form 8949 in section I (transactions not reported to you on a 1099-DA).
Who is affected?
US customers who traded a stablecoin for another crypto asset on an exchange that includes those trades on its 1099-DA.
How can I handle this?
  1. Check that your stablecoin-to-crypto trades appear in section I of your Form 8949.
  2. In the 1099-DA step, keep in mind that choosing your exchange's proceeds, or adjusting your proceeds to match the 1099-DA, adds those proceeds again. Since the trades are already in section I, this can count them twice.
  3. For more detail, see What to do when your 1099-DA shows a mismatch.
We can't advise which option to choose for your return. If you're unsure, check with a tax professional.
What's next?
We're updating the 1099-DA step to explain this difference in the product.
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Keywords: 1099-DA, proceeds mismatch, poor match, stablecoin, stablecoin proceeds, USDC, USDT, Form 8949, section I, safe option, adjust proceeds, 1099 reconciliation, Uphold, Crypto.com, Pionex