Still Waiting on Your Form 1099-DA? Why Filing a Crypto Tax Extension in 2026 Might Be the Smartest Move You Make

I'm Chris Herbst, and at CountDeFi we're telling a significant number of our crypto clients the same thing right now: slow down. File an extension. Make your estimated payment. Give yourself the time to get this right. The 2025 tax year (filing in 2026) is the first under the new Form 1099-DA reporting rules. Forms are late. Cost basis data is missing. And the April 15, 2026 deadline doesn't care about any of that. Here's how extensions work, why crypto investors should seriously consider one this year, and exactly how to file.

How to File a Crypto Tax Extension (Form 4868)

File Form 4868 before April 15, 2026. This gives you an automatic six-month extension, moving your filing deadline to October 15, 2026.

You can file Form 4868:

• Electronically through tax software (TurboTax, H&R Block, TaxAct, etc.)
• Through a tax professional who files it on your behalf
• Through IRS Free File at irs.gov/freefile
• By mail using a paper Form 4868 sent to the IRS address listed in the form instructions

The extension is automatic. You do not need to give a reason.

You still need to pay by April 15

An IRS tax extension gives you more time to file. It does not give you more time to pay. If you owe tax for the 2025 tax year, you must estimate and pay that amount by April 15, 2026 to avoid penalties and interest.

If you're unsure exactly what you owe, make your best estimate. Underpaying slightly is far better than not paying at all. You can adjust when you file the full return.

If you can't pay the full amount, pay what you can. The IRS charges interest on unpaid balances and may assess a failure-to-pay penalty, but filing an extension with a partial payment is significantly better than missing the deadline entirely. If you know you'll need more time to pay, contact the IRS about setting up an installment agreement.

If you're brand new to how crypto tax works in the US, our 2026 guide with get you up to speed.

The superseding return advantage

Here's something most crypto investors don't know. If you file an extension, submit your return, and later realize something needs correcting, you can file a superseding return before October 15, 2026. A superseding return replaces your original filing. It's a cleaner process than the alternative.

Without the extension, your only option is an amended return (Form 1040-X), which is more involved and explicitly flags the change. Confirm the specifics with your tax professional, but for crypto filers dealing with late forms and messy data, this flexibility alone is a strong reason to extend.

Form 1099-DA Delays Are Creating a Filing Crunch

This is the most common reason crypto clients are calling us at CountDeFi right now, and it's a problem unique to this filing season. (For a full breakdown of what Form 1099-DA is, what it gets wrong, and how to handle it, read our Form 1099-DA guide.)

The time-based problems:

• Forms are late. Brokers were required to furnish Form 1099-DA statements by February 17, but IRS transitional relief under Notice 2024-56 may reduce certain penalties for brokers making a good-faith effort to comply during this first year. Coinbase has told users to expect forms no later than March 17. Other brokers may also deliver forms later than February 17 during the first year of reporting.
• Cost basis is missing. Brokers are not required to report cost basis for the 2025 tax year. Most Form 1099-DA statements will not include basis for many transactions, so you'll often need to reconstruct it from your own records. That takes time.
• It's best to review the form before filing. Compare your Form 8949 proceeds to what the broker reported on your Form 1099-DA to reduce the risk of mismatch notices from the IRS.

If your forms haven't arrived and April 15 is approaching, an extension is the straightforward solution.

You Traded Across Multiple Exchanges

If you traded on more than one crypto exchange during the 2025 tax year, you'll receive a separate Form 1099-DA from each. None of them can see what the others reported. None of them know the cost basis for assets you transferred in.

Bringing this together on a single, accurate Form 8949 means importing data from each platform, matching transfers so they're not misreported as disposals, and reconciling each form's proceeds against your records. At CountDeFi, this is the most time-consuming part of crypto tax prep. For clients active across three or more platforms, an extension keeps you from cutting corners.

You Have DeFi, Staking, or On-Chain Activity

On-chain data doesn't come in a tidy spreadsheet. It needs to be extracted, interpreted, and converted into reportable figures. For complex DeFi users, this can take weeks. If you can't accurately report your on-chain activity by April 15, an extension is the responsible move.

You Haven't Reported Crypto in Prior Years

The IRS now has direct visibility into centralized exchange activity for the 2025 tax year. If your past returns show no crypto and your exchange just reported significant proceeds, that gap is visible.

Getting compliant properly, whether through amended prior-year returns or a voluntary disclosure, takes careful analysis. File the extension, make an estimated payment, and use the extra time to build a real compliance strategy rather than panic-filing.

You Want to Optimize Your Cost Basis Method

Notice 2025-7 provides temporary relief for how taxpayers identify which digital asset units are being sold when those units are held with a broker during the 2025 tax year. In practice, this means you may be able to support specific-unit identification methods (like HIFO or Specific ID) rather than defaulting to FIFO, potentially reducing your tax liability.

Choosing the right approach requires modeling different scenarios across your full portfolio. Rushing that decision before April 15 could cost you real money. An extension gives you room to optimize, not just comply.

Do I Need to File a State Extension Too?

This varies by state. Some states automatically honor your federal extension. Others require a separate state extension filing. Check with your state's tax authority to confirm their requirements and deadlines. If you work with a tax professional, they can handle both filings.

Can I File a Second Extension?

Generally, no. The six months from Form 4868 is the only automatic extension available. US taxpayers living outside the country may be able to request an additional four months. See the IRS guidance on extensions for taxpayers abroad.

An Extension Is Not a Risk. A Wrong Return Is.

What the IRS penalizes is inaccurate returns that don't match their records, missing cost basis that inflates your gains, unreported DeFi and staking activity, and failure to pay estimated tax by April 15.

An extension protects you from the first three. An estimated payment protects you from the fourth.

This is the first year of Form 1099-DA reporting. The data is messy. The forms are late. The rules are new. Taking extra time to file correctly is what the professionals are doing.

Need Help With Your Crypto Tax Extension?

At CountDeFi, we work exclusively with crypto investors and digital asset businesses. We can help you:

• Reconstruct cost basis across all exchanges, wallets, and on-chain activity‍
• Calculate your 2025 crypto tax liability precisely so your extension payment is accurate‍
• Reconcile Form 1099-DA discrepancies before they become IRS problems
  Build a compliance strategy if you have unreported crypto from prior years

Filing an extension is the easy part. Getting your crypto taxes right is where it counts. Start by booking a free call with one of CountDeFi's crypto tax specialists.

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