FAQ

Yes, our team includes licensed CPAs with Big 4 accounting backgrounds. They contribute their expertise in digital asset reconciliation, internal compliance, and process oversight. While our CPAs are not engaged in providing public CPA services to clients, their experience ensures the accuracy and quality of our reporting outputs.

No. Count On Sheep does not file tax returns and is not a CPA firm. Our role is to help clients organize and reconcile their crypto transactions across wallets and exchanges. We provide accurate, IRS-ready data and reports (such as Form 8949 transaction details) that can then be used by your licensed tax professional or entered into tax filing software.

If you do not have a CPA or tax preparer, we can provide referrals to licensed professionals in our national network who handle the filing process.

There are three main reasons clients work with us:

• Organization – We bring all your exchanges and wallets onto one manageable platform, reconciling transactions into a clear and accurate format.
• Accuracy & Clarity - Our team meticulously reconciles and categorizes your crypto activity, applying IRS-recognized reporting methods to ensure accurate, audit-ready outputs and peace of mind.
• Hand Off - We transform complex blockchain data into IRS-ready reports (such as Form 8949 transaction details) that you can easily provide to your CPA or upload into tax software to complete your filing.

Cryptocurrency exchanges such as Coinbase, Binance, Gemini, and others often face challenges in providing fully accurate reports for capital gains and losses. This isn’t due to shortcomings in the exchanges themselves but rather the nature of cryptocurrency transactions and transfers.

When assets move in and out of an exchange, the platform cannot always track the original acquisition details—such as when, where, or at what cost basis the crypto was obtained. Exchanges generally only record the value of the asset at the time it enters or leaves their system.

Because of this, exchange-generated tax reports can lack the complete cost basis history required for accurate reporting. Reconciling data across multiple wallets and platforms is necessary to produce a full, IRS-ready picture of your crypto activity.

The Digital Asset Reconciliation (DAR) process is our proprietary method of organizing and reconciling crypto transactions across wallets, exchanges, and DeFi platforms. We track cost basis, transfers, and on-chain activity to create a clear, IRS-ready view of your digital assets.

This process is highly technical and requires specialized blockchain knowledge to ensure accuracy and completeness. Count On Sheep delivers reconciled data and reports that your CPA or tax software can rely on for accurate filing and compliance.

We understand! Here’s how our pricing works:

At the start of a new engagement, we bill hourly. This is because every client’s crypto portfolio is different, and the complexity of reconciliation can vary. Our initial time-based approach ensures accuracy while we get familiar with your wallets, exchanges, and activity.

Once we’ve established your portfolio baseline, we can transition you into a fixed-pricing model. This allows us to provide predictable costs going forward, based on the average volume and complexity of your ongoing crypto activity.

Yes. Licensed CPAs can file your tax returns, including crypto-related forms. The challenge is that many CPAs are trained primarily in traditional (fiat) accounting and may not have the specialized tools or processes needed to accurately reconcile complex crypto activity such as NFTs, DeFi, staking, or mining.

That’s where Count On Sheep comes in. We partner with your CPA by handling the organization, technical analysis, and reconciliation of your digital asset data. Our Digital Asset Reconciliation (DAR) process creates accurate, IRS-ready reports (such as Form 8949 transaction data) that your CPA can confidently use to complete and file your tax return.

Yes, many CPAs now advertise that they handle crypto taxes. The challenge is that most are not equipped with specialized systems for reconciling complex digital asset activity across wallets, exchanges, and DeFi platforms. With over 56 million Americans holding crypto, this is becoming a significant need.

Count On Sheep partners with CPAs rather than competing with them. We handle the technical side: organizing, analyzing, and reconciling your digital asset data through our proprietary Digital Asset Reconciliation (DAR) process. We then deliver clear, IRS-ready reports (including Form 8949 transaction details) that your CPA can use directly in the tax filing process. If your CPA has questions about the reports, our team is available to provide supporting documentation and explanations.

Yes. While our team is equipped to handle complicated multi-exchange and multi-wallet portfolios, we also work with clients who have smaller, simpler portfolios. Even a single exchange like Coinbase can produce reports that lack complete cost basis information, so reconciliation helps ensure your data is accurate and IRS-ready.

For smaller portfolios, we offer straightforward, flat-fee options to deliver clean, reconciled reports that you can easily provide to your CPA or upload into tax software.

Yes. While most of our clients are individuals, we also support businesses with digital asset reporting. Whether you are a high-volume institutional trader or hold crypto on your company’s balance sheet, our team provides reconciliation and reporting services tailored to your needs.

We deliver detailed, IRS-ready and audit-ready outputs, including:

• Capital gains and transaction history reports

• Gifts, donations, and lost asset summaries

• End-of-year holdings reports

• Expense and fee expenditure reports

• Counterparty and positions reports

• Assets and reconciliation reports

Note: For B2B clients we use enterprise-level software to meet advanced reporting requirements. All filings remain the responsibility of your CPA or internal accounting team.

Yes. We specialize in reconciling NFT portfolios, from high-value collections to everyday traders. Our team has worked with some of the largest NFT holders, reconciling portfolios with thousands of transactions across collections such as Bored Apes, Mutant Apes, and CryptoPunks.

No matter the size of your portfolio, we provide accurate, IRS-ready reconciliation reports that your CPA or tax software can use to complete your filing with confidence.

After testing several of the top crypto tax software platforms, we recommend Koinly because of its strengths in:

1. Ongoing tax code updates

2. User-friendly dashboard setup and interface

3. Desktop and mobile accessibility

4. Clean, accurate, and IRS-ready reports

5. Responsive customer service

6. Multinational support and reporting capabilities

Yes. Decentralized Finance (DeFi) is one of the most complex and fast-changing areas of crypto, and it requires careful tracking. Our team uses specialized software and blockchain expertise to reconcile DeFi activity — including staking, liquidity pools, lending, and yield farming — into accurate, IRS-ready reports.

These reconciled reports can then be provided to your CPA or uploaded into tax filing software to complete your return.

We make the process as seamless as possible. After guiding you through onboarding, our team reconciles your entire crypto portfolio including wallets, exchanges, NFTs, and DeFi activity into clear IRS-ready reports. These reports provide the data your CPA or tax software needs to complete your filing.

You don’t have to stress about organizing or tracking your transactions. We do the heavy lifting so you can hand off accurate, ready-to-use reports with confidence.

We understand you may be focused on reporting for this tax year, but to build accurate reports we need to establish your cost basis — the original purchase value of your crypto assets. Without this information, gains and losses cannot be tracked correctly.

That’s why we review activity going back to when you first started trading. Our reconciliation process ensures your entire portfolio history is captured so your CPA or tax software has accurate, IRS-ready data.

Note: If you started acquiring crypto this year, we only need to review activity from this year forward.

We reconcile your entire crypto transaction history across wallets, exchanges, and DeFi platforms into clear, IRS-ready reports. These reports contain the detailed transaction data most commonly used for tax filing, including information that maps directly into Form 8949 and Schedule D.

You can provide these reports to your CPA or import them into tax filing software to complete your return.

The cost of digital asset reconciliation and reporting is higher because of the complexity involved in organizing crypto transactions. Unlike traditional financial records, crypto activity can span thousands of trades across multiple exchanges and wallets, each requiring cost basis tracking and reconciliation.

On top of that, activities such as staking, mining, airdrops, and DeFi (Decentralized Finance) add further layers of complexity. Our service requires specialized software and technical expertise to convert this raw blockchain data into accurate, IRS-ready reports that your CPA or tax software can use for filing.

We never request direct access to your assets. Instead, clients connect their wallets and exchanges to our preferred tax reporting platform, Koinly, using “view-only” API keys. This method allows us to import transaction history securely without the ability to move, trade, or withdraw funds.

Koinly uses bank-level encryption, similar to how accounting platforms like QuickBooks connect with traditional bank data. This ensures that your crypto transaction history can be safely reconciled into IRS-ready reports while your assets remain fully under your control.

No. Count On Sheep is not a CPA firm and does not file tax returns. We specialize in digital asset reconciliation and reporting. Our role is to organize and reconcile your crypto activity into IRS-ready reports that your CPA or tax software can use for filing.

In the event of an IRS audit, Count On Sheep provides reconciled transaction reports and supporting documentation that demonstrate how your digital asset data was organized. While we don’t represent clients before the IRS, our reports are designed to give your CPA the clear audit trail they need.

We reconcile a wide range of digital asset activity, including exchange trading, wallet transfers, DeFi (staking, lending, liquidity pools), mining, NFTs, airdrops, forks, and more.

Yes. We accept cryptocurrency through our Coinbase Business account. All payments are automatically converted into USD to keep things simple for both our clients and our accounting records.

It depends on the size and complexity of your portfolio. Smaller portfolios may take a few days, while more complex cases with many wallets and exchanges may take several weeks. We provide a timeline after your initial consultation.

DIY platforms are useful but rely on users to manage their own imports and settings. Count On Sheep combines enterprise-grade software with expert reconciliation, ensuring your data is accurate, organized, and IRS-ready — something most users struggle to achieve on their own.

Yes. While our primary focus is on U.S. tax reporting requirements, we also support international clients. Our Digital Asset Reconciliation (DAR) process organizes wallets, exchanges, and DeFi activity into accurate reports that can be adapted for use in different tax jurisdictions.

For clients outside the U.S., we provide reconciled transaction data that can be delivered to your local tax professional for filing in accordance with your country’s regulations.