IRS Cryptocurrency Letters Are Back – What to Know About 6174, 6174-A, and 6173

📬 What We’re Seeing: IRS Cryptocurrency Letters Are Back

We’ve recently seen an uptick in IRS notices related to cryptocurrency activity—specifically Letter 6174, Letter 6174-A, and Letter 6173. If you’ve received one, you’re not alone—and you definitely shouldn’t ignore it.

🔍 What Are These Letters?

These letters are part of the IRS’s continuing efforts to enforce compliance with virtual currency tax reporting rules. They’re not audits—but they are clear warnings.

• Letter 6174: A general educational letter stating that the IRS knows you may have virtual currency transactions. It suggests that you may not have reported your transactions.
• Letter 6174-A: A more targeted version that suggests the IRS has specific information about your crypto activity.
• Letter 6173: This is the most serious of the three. It asserts that the IRS has information about unreported virtual currency transactions and requires a response. Ignoring it could lead to enforcement action or an audit.

📄 Read the IRS official release here

⚠️ Why You Should Take This Seriously

Even if these notices feel informal, they are part of a larger enforcement initiative. The IRS has increased information sharing with crypto exchanges and is using that data to identify underreporting. They’re not just casting a wide net—they’re aiming with precision.

Cryptocurrency reporting can be confusing and easily mishandled—especially if you:

• Received crypto as payment
• Traded across multiple platforms
• Didn’t receive a 1099
• Participated in DeFi, staking, or NFTs

You can learn more about the tax treatment of digital assets in my Florida Bar Journal article here.

👩‍⚖️ Why You Should Contact Us

At Orlando Tax Law, we’ve helped clients:

• Interpret these letters correctly
• Correct past filings when needed with the assistance of a CPA
• Avoid triggering an audit or enforcement action
• Confidently respond to the IRS with the right legal footing

If you’ve received one of these letters, don’t panic—but don’t ignore it either. Let us help you navigate the next steps.

📞 Let’s Talk

📱 Call us today or schedule a consultation online. The sooner we review your situation, the better prepared you’ll be.