Kraken x SerenAI: Third-Party Tax Aggregator FAQ

Your 1099-DA is a tax form Kraken files with the IRS summarizing your crypto sales for the year - similar to a W-2, but for crypto. You'll need to download a copy so SerenAI can review it. To find the form:

1. Sign into your Kraken account (kraken.com/c)

2. Click your profile icon on the top-right corner of the screen

3. Select Settings from the dropdown menu, then click Tax center
 

4. Find your Form 1099-DA and click Download to save it as a CSV file. Save this file in a place you can easily find, like your Desktop or Downloads folder.

Your 1099-DA is calculated from your transaction history on Kraken. To verify it's accurate, SerenAI connects to your Kraken account and compares that history against your 1099-DA line by line. This requires a read-only API key, which means SerenAI can only view your data — it cannot trade or withdraw on your behalf.

5a. In your Kraken account, go to Settings → API, or visit kraken.com/u/security/api directly.

5b. Click Create API Key
5c. Configure the key with these exact settings:

5d. Click Generate Key. You will see your API Key and Private Key. Copy both and save them somewhere safe as the Private Key is only shown once.

Seren Desktop is a free app that runs locally on your computer. It powers the AI that checks your tax documents, and because everything runs on your machine, your data is never sent to SerenAI's servers.

6. Go to serenb.com:

7. Click the Download button for your operating system (Mac, Windows, or Linux).

8. Open the downloaded file and follow the installation prompts.

• On Mac: Drag Seren Desktop to your Applications folder
• On Windows: Run the installer and follow the on-screen instructions

9. Open Seren Desktop from your Applications (Mac) or Start Menu (Windows).

Creating a Seren account is free and takes just a minute. Once you sign in to Seren Desktop, you're authenticated automatically - no API keys needed. Your Seren account is completely separate from your Kraken account and doesn't provide access to your crypto.

10. When Seren Desktop opens, you'll see a Sign In dialog. If you already have a Seren account, enter your email and password and click Sign In. If not, click Sign up for Seren.

11. If you're new to Seren, you'll be taken to the sign-up page to create your account. From there, you can either enter your email address and create a password, or sign up instantly using GitHub, Google, or Microsoft.

12. Check your email for a verification link and click it to confirm your account.

13. Return to Seren Desktop and sign in with your new account. Once signed in, Seren Desktop automatically authenticates your session — no API key is needed. The app handles everything behind the scenes so you can get started right away.

Optional — API Key for Advanced Users
If you need an API key for command-line tools or external integrations, you can create one at console.serendb.com/api-keys. This is not required for Seren Desktop users.

An AI agent is a built-in smart assistant inside Seren Desktop. Just share your files and tell it what you need in plain English - no commands, no coding, no technical knowledge required.

14. In Seren Desktop, choose how to power your AI agent. At the bottom of the screen you'll see a model selector (e.g., "Claude Opus 4.5") and a publishers selector. You have three options:

15. Click + New Agent in the top-left to start a fresh agent session.

A "skill" is a pre-built recipe that tells the AI agent exactly how to do a specific job. For tax reconciliation, you need to add the Kraken 1099-DA Reconciliation skill - this teaches your agent how to compare your tax documents.

16. In the left sidebar, click the Skills section. You'll see a search bar and a + Create New Skill button.

17. In the search bar, type "tax" or "1099". You'll see the Kraken 1099 Reconciler skill appear in the results.

18. Click on the Kraken 1099 Tax Reconciler skill to activate it for your agent.

Upload your 1099-DA and the AI agent does all the work.

19. In the agent chat, upload your Kraken 1099-DA CSV (from Part 1). You can either:

• Drag and drop the file directly into the chat window, or
• Click the Attach button and select your file

20. Type a message describing your request - for example, "Please review my 1099-DA from Kraken" - and press Enter.

The agent will ask for your Kraken API Key and Private Key (from step 2). Provide them when prompted. The agent uses them to pull your trades directly from Kraken and cross-check them against your 1099-DA.

21. Wait while the agent processes your data. This usually takes 1-3 minutes depending on how many transactions you have.

22. When complete, the agent will show you a plain-language report including:

• Transaction summary — Total dispositions, proceeds, cost basis, and gain/loss by category (short-term/long-term)
• Issues found — Flagged items with plain-language explanations
• Recommendations — What to do about each issue
• Form 8949 readiness checklist — Pass/fail per item

The report also includes:

• Reconciliation summary — How many 1099-DA entries matched your raw trades
• Discrepancies — Where the computed 1099-DA differs from your actual trade data

23. Review any flagged items:

24. If you have complex issues (missing cost basis, DeFi transactions, or large discrepancies), the agent will recommend booking a session with a licensed CPA through CryptoBullseye.zone's Crypto Action Plan.

Navigate to Profile (top-right icon) > Settings > Tax center > Crypto tab. If you don't see a 1099-DA, your account may not have had reportable crypto sales for that tax year, or the forms may not have been issued yet.

Go to Settings > API, or navigate directly to kraken.com/u/security/api. If you don't see this option, make sure you're signed in to the full Kraken web interface — not the mobile app.

• On Mac: Open System Settings → Privacy & Security, and click "Open Anyway" if macOS blocked the app.
• On Windows: Right-click the Seren Desktop shortcut and select "Run as administrator."
• Make sure your computer meets the minimum requirements (macOS 10.15+, Windows 10+, or Linux).

• Check that your internet connection is working.
• Make sure your AI provider (Claude, OpenAI, Gemini, or SerenBucks) is properly configured in Part 5.
• Try clicking + New Agent again to restart the session.

Some mismatches are common and harmless, especially if you traded on multiple platforms. Typical causes include timezone differences between your exchange and tax software, minor rounding differences, and variations in how trading fees are recorded. The agent's report will explain each mismatch and flag anything that needs your attention.

Not directly. You manually download your 1099-DA and create a read-only API key in Kraken. The agent uses this key to pull your transaction history for verification — it stays on your computer, can't be used to trade or withdraw funds, and is never sent to SerenAI's servers.

No. Everything runs locally on your computer. Your CSV files and reconciliation results stay on your machine. SerenAI servers never receive or store your financial data.

No. When you sign in to Seren Desktop with your email and password, authentication is handled automatically. The app uses MCP (Model Context Protocol) to securely manage your session behind the scenes — no API key required. API keys are only needed if you're connecting command-line tools or external integrations. Your Seren login does not give SerenAI access to your Kraken account, trading history, or personal information.

It analyzes your 1099-DA to find:

• Missing or zero cost basis entries
• Holding period classification issues (short-term vs long-term)
• Fee treatment and its impact on gain/loss
• Transactions that may need further review (DeFi, staking, wrapped tokens)

If you provide a Kraken API key, it also cross-checks your 1099-DA against your raw trade history to find:

• Proceeds mismatches between the 1099-DA and actual trades
• Missing transactions (on the 1099-DA but not in your trade history, or vice versa)
• Timing or quantity discrepancies

• IRS Form 1099-DA (Digital Assets)
• IRS Form 8949 (Sales and Other Dispositions of Capital Assets)
• Schedule D (Capital Gains and Losses)

The agent explains what it found in plain language and suggests next steps. For minor issues (rounding, timing), it provides automatic explanations. For bigger issues, it recommends booking a session with a CPA through CryptoBullseye.zone's Crypto Action Plan.

The skill focuses on sales and exchanges reported on your 1099-DA. Complex transactions like staking rewards, airdrops, and DeFi activities are flagged for manual review or CPA consultation.

The review report documents discrepancies with evidence. You can use this documentation when contacting Kraken support or your tax advisor.