DeFi Tax, a crypto tax compliance platform founded by Janna Scott, launched its paid public version this month. The platform represents a departure from existing crypto tax solutions, calculating liabilities using direct blockchain data rather than CSV uploads, exchange exports, or user-editable entries.
Scott, whose background is in tax compliance, began developing DeFi Tax in December 2021 after accounting clients expressed concerns about the reliability of their crypto tax reports. What started as a customer service issue grew into a two-year research initiative involving collaboration with government organizations and academic institutions.
The central finding was striking: the same crypto wallet, managed by fourteen major tax platforms, produced fourteen different tax results. Differences between platforms sometimes exceeded tens of thousands of dollars on identical transaction data.
“I kept seeing the same pattern,” Scott said. “People thought their taxes were being handled until an audit or notice came. When I audited crypto tax platforms myself, I realized that many of them couldn’t explain their own numbers.”
Structural defects in existing platforms
According to Scott, the inconsistencies she discovered were not bugs or implementation errors. They reflect architectural decisions built into the operation of most crypto-tax software.
The standard workflow in the industry involves users exporting CSV files from exchanges, uploading them to a tax platform and receiving the calculated results. These platforms typically allow users to modify transaction data, adjusting timestamps, reclassifying transaction types, and changing basic cost calculations.
Scott argues that this model breaks down when applied to decentralized financial activity.
“Most tools were designed for basic buying and selling activities,” Scott said. “Once you introduce DeFi, LPs, bridges and packaging, the calculations fail. The biggest problem isn’t the missing features; it’s the lack of explainability. If you can’t explain how a number was calculated, it won’t hold up to audit.”
Specific transaction types common in DeFi are regularly misclassified. Yet Scott found that most platforms treat these transactions as taxable events.
Scott said. “DeFi activity reveals cracks in legacy tax logic.”
The mutable nature of the data compounds the problem. Manual adjustments can help users reconcile confusing short-term results, but they eliminate the audit trail required by regulators.
“Automation without transparency is just faster risk,” Scott said.
Direct blockchain integration
DeFi Tax is designed to reduce reliance on CSV imports and manual editing by automating transaction ingestion and processing. The platform reads transaction data directly from the blockchain, treating on-chain records as the only source of truth.
DeFi Tax streamlines tax preparation by minimizing the need for CSV imports and manual edits through automated transaction processing. The platform applies a unique and consistent calculation methodology. The same portfolio will produce the same tax result each time it is run.
“We don’t optimize for speed or simplicity at the expense of accuracy,” Scott said. “DeFi Tax is built around audit defense. Every number must be traceable, consistent, and defensible. This mindset changes everything about how the system is designed.”
Scott emphasized that audit preparation is not simply about precise totals. This requires documentation that can answer follow-up questions.
“An auditor doesn’t just want totals,” she said. “They want to know how you got there. Audit-ready reports are structured, consistent and explainable.”
The platform received recognition from regulatory bodies and academic experts during its development phase for its approach to blockchain data integrity and compliance methodology.
Timetable and regulatory context
DeFi Tax enters the market as regulatory scrutiny of digital assets reaches new levels. The IRS has expanded reporting requirements for cryptocurrencies. The SEC has stepped up enforcement actions against crypto entities. Audit activity targeting crypto holders has increased.
“As reporting requirements tighten, crypto audits are becoming more common,” Scott said. “The risk isn’t just about enforcing the rules; it’s also about being unprepared when questions arise.”
Scott sees the current regulatory environment as an inflection point for the industry.
“Cryptocurrency tax compliance is increasing, whether the tools are ready or not,” she said. “The future of crypto depends less on speculation and more on systems that regulators, institutions, and everyday users can trust.”
The launch timeline also corresponds with tax season, when crypto holders face immediate filing decisions and the limitations of existing tools become most evident.
“Don’t wait until tax season or an audit to understand your risk,” Scott said. “If you can’t explain your report today, that’s a signal to do something about it.”
Target users and market position
DeFi Tax is designed for users with significant on-chain activity who need reliable and defensible reporting. The target market includes individual crypto investors, active DeFi participants, startup founders, DAOs, as well as the CPAs, tax attorneys, and financial advisors who serve them.
Scott rejected the characterization of crypto investors as tax evaders.
“Most people aren’t trying to avoid taxes on cryptocurrencies,” she said. “They’re trying to figure them out.”
The platform is positioned as compliance infrastructure rather than a practical tool. This is not a beta product or estimation engine. It is commercially available paid software intended for users who make real filing decisions under current regulatory conditions.
“Clarity is the most undervalued characteristic of crypto finance,” Scott said.
Industry Outlook
Scott believes the crypto tax software market is facing a correction. Platforms designed for a more permissive era will struggle as regulatory expectations rise and enforcement intensifies.
“The tools that survive will be those designed to be examined,” she said. “The future of crypto taxes is explainability.”
DeFi Tax is now available at https://defitax.us
Image credit: DeFix Tax
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