Brokers are filing 1099-DAs with zero or missing cost basis for crypto that moved between wallets before the new rules kicked in. The IRS checks the gains reported on Form 8949 against that 1099-DA. No basis means the system treats the entire sale price as gain. Average overstated gain per trader: $4,500.

The Signal  — CPAs who fix the cost basis now save clients from overpaying taxes and getting an IRS notice. The client did not cause this problem. Exchanges did not track cost basis for crypto that moved before the new rules kicked in. The IRS flags the taxpayer anyway. The fix is a Form 8949 reconciliation and records showing when the client first bought the crypto. What to watch: March 15 is the deadline for amended returns. Run the cost basis check now, not after the IRS notice arrives.

AI was the stated reason for 38,579 U.S. layoffs in May. Third month in a row at number one. Through May, AI-linked cuts total 87,714, already 60% above all of last year, per Challenger, Gray & Christmas.

The U.S. added 172,000 jobs in May. Accounting, tax prep, bookkeeping and payroll lost 5,400 of them. Leisure, healthcare and government drove the gains.

A CFO Dive survey found 65% of finance leaders are putting 10% or more of their 2026 budgets into AI. But 59% worry it might be a bubble. The firms getting the best returns tie each AI purchase to a specific outcome before signing off.

BLS data shows automation is squeezing margins on compliance-only work. Firms without advisory services are losing ground, and the ones gaining are building that capacity now.

Wolters Kluwer and OpenAI are expanding their AI partnership for accounting and legal work. The goal is AI that pulls answers from verified accounting and legal sources, not from general training data.

Gloria Mark's research, published in MIT Technology Review, shows attention spans fell from 2.5 minutes in 2003 to 47 seconds by 2020. The piece looks at what happens to your judgment when you let AI do the thinking for you.

Self-represented court filings more than doubled since 2023, judges now spot AI-written briefs on sight, and cleaner documents have not helped anyone win. Read it before anyone tells you AI replaces expertise.

Veltrix AI (veltrix.ai)

Veltrix tracks cash flow, margins and growth in one place using AI. It launched this week and is built for small finance teams that want real CFO-level reporting without the salary.

The wait is over. Whispers of Nystad is out now. A historical thriller where a coded letter can end a war. Follow Elsa across a frozen Baltic frontier as empires collide and every message carries a price. Available in paperback and ebook.

New tools and web apps are rolling out. See what's live and what is next.

Answer 16 questions about what you love, what you're good at, what the world needs and what you can be paid for. Nexairi Wayfinder maps the overlaps and tells you exactly what it means for your career.

That's the dispatch.

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— Jim

Jim Smart  ·  Founder, Nexairi

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