IRS ramps up 6174 letters to crypto traders, expert warns of pressure tactics
- —Letters 6174 and 6174-A are not formal audits and a response is not mandatory
- —CryptoTaxAudit received five client inquiries about such letters in the past week
- —Donnelly estimates the IRS is sending roughly 10,000 notices per month
- —He advises clients not to sign or submit anything to the IRS before professional review
Why it matters: A surge in 6174 notices raises compliance risk for US crypto traders, as a careless response could trigger enforcement action.
Source: BeInCrypto RU