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Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
Free 30-min Web3 Consultation
Book Consultation
Smart Contract Security Audits
View Audit Services
Custom DeFi Protocol Development
Explore DeFi
Full-Stack Web3 dApp Development
View App Services
LABS
Services

Automated Tax Form 1099 Generation for Crypto Payments

A fully automated backend system that aggregates annual crypto payment data, calculates reportable income, and generates ready-to-file IRS Form 1099s for your business payees.
Chainscore © 2026
overview
FOUNDATION

Blockchain Infrastructure

Enterprise-grade node infrastructure and RPC services with 99.9% uptime SLA.

We provide dedicated, high-performance nodes for Ethereum, Solana, Polygon, and other major L1/L2 networks. Our infrastructure eliminates the operational overhead of self-hosting, ensuring sub-second latency and global redundancy.

  • Managed RPC Endpoints: Private, load-balanced endpoints with rate limits you control.
  • Archive & Full Nodes: Access to full historical data for indexing and analytics.
  • Validator Services: Secure, non-custodial staking infrastructure for PoS networks.

Deploy production-ready infrastructure in hours, not weeks, backed by a 99.9% uptime SLA and 24/7 monitoring. We handle upgrades, security patches, and scaling so your team can focus on building.

key-features-cards
AUTOMATED COMPLIANCE ENGINE

Core System Capabilities

Our platform automates the entire 1099-MISC reporting lifecycle for crypto payments, eliminating manual work and audit risk for your finance and engineering teams.

01

Real-Time Transaction Ingestion

Automatically ingest and categorize on-chain and off-chain crypto payments from any EVM-compatible chain or custodial wallet. We handle raw transaction data, so your engineers don't have to.

< 5 min
Sync Latency
100%
Data Coverage
02

Accurate Cost Basis & Gain/Loss

Automated FIFO accounting calculates accurate cost basis, fair market value, and capital gains/losses for every payment, ensuring IRS compliance and reducing your tax liability risk.

FIFO
Default Method
0 Errors
Audit Goal
03

Automated Form 1099-MISC Generation

Systematically generate IRS-ready Form 1099-MISC for each payee meeting the $600 threshold. Includes all required fields: payer/payee details, payment amounts in USD, and cryptocurrency type.

IRS Compliant
Form Standards
Bulk Processing
Scale
04

Secure Payee Onboarding & TIN Matching

Collect W-9 forms and validate Taxpayer Identification Numbers (TINs) against the IRS database in real-time. Securely store sensitive data with SOC 2 Type II compliant encryption.

SOC 2
Data Security
Real-Time
TIN Validation
05

Electronic Filing & Delivery (1099 & 1096)

File Form 1096 (Annual Summary) and all 1099s directly to the IRS via FIRE System. Deliver copies to payees electronically with proof of delivery, eliminating manual mailing.

FIRE System
IRS Filing
Proof of Delivery
Payee Copies
06

Audit-Ready Reporting & Reconciliation

Generate detailed audit trails, reconciliation reports, and year-end summaries. Maintain a permanent, immutable record of all calculations and filings for 7+ years as required by the IRS.

7+ Years
Record Retention
Full Audit Trail
Compliance
benefits
TANGIBLE RESULTS

Business Outcomes You Can Measure

Our automated 1099 generation for crypto payments delivers clear, quantifiable value that reduces your operational burden and mitigates compliance risk.

01

Eliminate Manual Reconciliation

Automatically match on-chain transactions to user identities and payment events, replacing weeks of manual spreadsheet work with a single API call.

> 95%
Time Saved
0 Errors
Manual Entry
02

Guaranteed IRS Compliance

Generate IRS-accepted Form 1099-MISC/NEC files with all required fields pre-filled, including cost basis and fair market value calculations.

100%
Filing Accuracy
IRS e-File
Ready
03

Reduce Legal & Audit Risk

Maintain a complete, immutable audit trail for every transaction and tax form. Demonstrate proactive compliance to regulators and auditors.

Full Audit
Trail
SOC 2
Compliant
04

Accelerate Developer Velocity

Integrate our API in days, not months. Your engineering team stays focused on core product features instead of tax compliance infrastructure.

< 1 Week
Integration
REST & Webhook
APIs
05

Slash Operational Costs

Replace expensive third-party accounting services and internal headcount dedicated to manual tax processing with a predictable SaaS model.

Up to 70%
Cost Reduction
Predictable
Pricing
06

Enhance User Trust & Retention

Provide your users with clear, professional tax documents, reducing their filing anxiety and increasing platform loyalty and perceived legitimacy.

Proactive
Support
Brand Trust
Boosted
Choosing Your Path to 1099 Compliance

Build vs. Buy vs. Manual Process

A comparison of the time, cost, and risk involved in managing crypto tax form generation for your business.

Key FactorBuild In-HouseUse ChainscoreManual Process

Time to Initial Deployment

4-6 months

2-4 weeks

N/A

Annual Engineering Cost

$150K-$300K

$25K-$75K

$0

IRS Audit & Penalty Risk

High (custom logic)

Low (audited system)

Very High (human error)

Supported Protocols & Chains

Your selection only

100+ chains & protocols

Manual research required

Real-Time Cost Basis Tracking

Custom development

Included

Spreadsheet formulas

Year-End Processing Time

1-2 weeks (automated)

< 24 hours

4-6 weeks (manual)

Data Source Integration

Your responsibility

Pre-built connectors

Manual CSV uploads

Ongoing Maintenance & Updates

Your team

Handled by Chainscore

Your finance team

Employee & Contractor Coverage

Custom logic

Automatic classification

Manual review per person

Total First-Year Cost

$180K-$350K+

$30K-$80K

$50K-$120K (labor risk)

how-we-deliver
SEAMLESS DEPLOYMENT

Our Integration & Delivery Process

A streamlined, API-first approach designed for engineering teams. We handle the complex compliance logic so you can focus on your core product.

02

Automated Data Ingestion

Our system automatically ingests and normalizes transaction data from your on-chain and off-chain payment rails, ensuring a single source of truth for tax reporting.

Real-time
Data Sync
100+
Protocols Supported
03

Compliance Engine Processing

Proprietary engine applies IRS rules (Rev. Rul. 2019-24) to classify transactions, calculate cost basis, and determine 1099-MISC/NEC eligibility with audit-grade accuracy.

IRS Compliant
Rule Engine
24/7
Processing
04

Secure Form Generation & Delivery

Generate finalized, print-ready IRS Forms 1099 for each payee. Deliver via encrypted digital portal, secure email, or physical mail through our BPO partners.

Bank-Grade
Encryption
IRS e-File
Ready
security-compliance
CORE INFRASTRUCTURE

Custom Smart Contract Development

Secure, production-ready smart contracts built by Web3 experts for your specific use case.

We architect and deploy battle-tested smart contracts that form the immutable foundation of your application. Our development process includes formal verification and comprehensive audits to mitigate risk before mainnet deployment.

  • Custom Logic: Solidity/Rust contracts for DeFi protocols, NFTs, DAOs, and enterprise solutions.
  • Security-First: Development with OpenZeppelin standards, automated testing, and multi-stage review.
  • Gas Optimization: Code engineered for minimum transaction costs and maximum efficiency on EVM & L2s.
  • Full Ownership: You receive 100% of the source code and IP with clear documentation.

From initial concept to audit-ready code in as little as 2-4 weeks. We ensure your core business logic is secure, scalable, and ready for users.

Automated 1099 Generation

Frequently Asked Questions

Get clear answers on how our automated tax form generation service simplifies compliance for your crypto payments.

Our service integrates directly with your payment infrastructure via API. We automatically ingest transaction data, apply IRS cost-basis and reporting rules, validate taxpayer information, and generate ready-to-file 1099-MISC and 1099-NEC forms. You receive a secure dashboard for review and approval before we handle e-filing and delivery to recipients.

ENQUIRY

Get In Touch
today.

Our experts will offer a free quote and a 30min call to discuss your project.

NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team