Summ
Crypto Tax Infrastructure for On-Chain Users
Crypto taxes are no longer an edge case — they are enforced infrastructure for participation.
- • Aggregates wallets, exchanges, and chains
- • Converts DeFi activity into tax-readable events
- • Produces audit-ready, compliant reports
Overview
Summ is a crypto tax preparation platform built to handle the reality of modern on-chain activity. It tracks wallets, exchanges, tokens, NFTs, DeFi protocols, and bridges — then reconciles them into compliant, tax-ready outputs.
Why Crypto Tax Reporting Broke
Early crypto accounting assumed a world of simple buy-sell trades and custodial exchanges. That assumption collapsed as users began interacting directly with smart contracts, bridging assets, farming yields, minting NFTs, and running automated strategies.
Today, users can generate thousands of taxable events without ever executing a traditional trade. Manual accounting does not scale in this environment.
How Summ Works
- • Connect wallets and exchanges via API or import
- • Automatically ingest and categorize transactions
- • Normalize DeFi, NFT, staking, and bridge activity
- • Apply cost-basis and lot accounting logic
- • Generate compliant tax forms and audit trails
Summ vs Legacy Crypto Tax Tools
Most crypto tax platforms were designed for an earlier phase of the ecosystem — one dominated by centralized exchanges, simple spot trades, and limited transaction volume. As on-chain activity evolved, many of these tools struggled to adapt.
| Capability | Legacy Tax Tools | Summ |
|---|---|---|
| Design Philosophy | Exchange-first, trade-based accounting | On-chain–native infrastructure |
| DeFi & Smart Contracts | Partial support, heavy manual intervention | Normalized into tax-readable events |
| Multi-Chain Activity | Limited or fragmented | Native multi-chain tracking |
| Transaction Scale | Designed for low-to-moderate volume | Built for high-frequency, high-volume users |
| Edge Case Handling | Errors or silent misclassification | Explicit surfacing for user review |
| Audit Readiness | Form output only | Full transaction history & audit trail |
| User Profile | Casual or buy-and-hold users | Active on-chain participants |
This distinction matters. Tools built for exchange-led activity tend to break down as transaction complexity increases. Summ approaches tax reporting as infrastructure — designed to ingest raw on-chain data, apply consistent logic, and surface complexity rather than hide it.
Tax Optimization (Within Compliance)
Summ applies transparent accounting logic to help users minimize tax exposure legally. By prioritizing higher cost-basis assets and clearly tracking realized vs unrealized gains, users gain visibility into liabilities before filing.
IRS Form 1099-DA: The New Era of Crypto Reporting
IRS Form 1099-DA signals the shift from voluntary crypto reporting to standardized third-party enforcement beginning with the 2025 tax year.
Starting with the 2025 tax year (forms issued in early 2026), the IRS introduced Form 1099-DA — a dedicated tax information return that reports digital asset proceeds from broker transactions. This form reflects gross proceeds from sales, exchanges, and certain disposals of cryptocurrencies and related digital assets, and is part of broader efforts to standardize third-party reporting for crypto activity.
Unlike legacy reporting, which often forced crypto into forms not designed for digital assets, 1099-DA provides a clearer, consistent summary of what exchanges and brokers reported to the IRS about your activity. However, for the 2025 tax year, most brokers are only required to report gross proceeds — not your cost basis — which means you still need to reconstruct your full transaction history to calculate your true gain or loss.
- What triggers a 1099-DA: Sales, exchanges, or disposals of digital assets reported by a broker.
- What it includes: Gross proceeds and transaction details from that broker’s perspective.
- What it may omit: Cost basis and any activity outside that broker (e.g., DeFi, wallets, other exchanges).
Receiving a 1099-DA does not relieve you of the responsibility to report all your crypto gains and losses correctly — especially if you used multiple platforms, self-custodial wallets, or engaged in DeFi activity not captured by a single broker’s form.
How Summ Reconciles 1099-DA Data
Summ’s reconciliation engine is built for this exact environment. When you receive one or more 1099-DA forms, each only shows part of the picture — often lacking basis and leaving gaps for transactions outside that broker. Summ ingests all available 1099-DA data and then fills in the missing pieces by:
- • Importing 1099-DA and other broker data automatically
- • Reconciling cost basis and historic transactions across all wallets and chains
- • Normalizing DeFi, NFT, and cross-chain events into consistent tax events
- • Generating defendable tax reports (including Form 8949 and summaries)
In a world where the IRS is matching third-party reporting against your return, having a unified, reconciled dataset isn’t optional — it’s essential. Summ turns fragmented 1099-DA outputs into a complete, audit-ready submission.
Who Summ Is Built For
- • Active traders and DeFi users
- • Multi-wallet and multi-chain participants
- • NFT creators and collectors
- • Individuals and entities required to file accurately
Failure Modes & Limitations
No crypto tax platform eliminates complexity. Highly custom NFT contracts, DAO distributions, experimental protocols, and novel smart-contract mechanics may require manual review. Summ surfaces these edge cases instead of hiding them.
Why This Market Is Non-Cyclical
Taxes are owed regardless of market direction. As enforcement tightens and on-chain activity grows, crypto tax reporting becomes mandatory infrastructure rather than optional tooling.
Long-Term Outlook (2026–2028)
As adoption expands, tax reporting shifts closer to the infrastructure layer. Platforms designed for complexity, transparency, and auditability will dominate. Summ is positioned squarely in that category.
Disclosure: referral link. Crypto tax rules vary by jurisdiction. Software does not replace professional tax advice.