Starting in 2019, the IRS began sending letters to cryptocurrency holders identified through exchange data. Three versions exist — Letter 6174, Letter 6174-A, and Letter 6173 — and the version you received determines the severity of the IRS's concern and the urgency of your response.

Letter 6174: Educational

Letter 6174 is the mildest version. It informs you that the IRS is aware you have or had cryptocurrency and reminds you of your tax obligations. No response is required. However, receiving this letter means you are in the IRS's crypto database. If your returns do not accurately report your crypto activity, the IRS has flagged you as a potential compliance issue.

Letter 6174-A: Compliance Nudge

Letter 6174-A is more pointed. It states that the IRS has information suggesting you may not have properly reported your cryptocurrency transactions. It recommends reviewing your returns and filing amended returns if necessary. While no specific response deadline exists, this letter indicates the IRS has compared your exchange data against your filed returns and found a discrepancy.

Letter 6173: Action Required

Letter 6173 is the most serious. It requires a response. You must either confirm compliance, explain your reporting position, or file amended or delinquent returns. Ignoring this letter accelerates the IRS's timeline for formal examination. This is not a suggestion — it is a demand for information that the IRS will pursue if ignored.

What All Three Letters Mean

Regardless of the version, receiving a crypto compliance letter means the IRS has your exchange data, has identified your account, and has compared it against your tax filings. The IRS does not send these letters randomly. Your information came from exchange records obtained through summonses or information reporting.

How to Respond

The correct response depends on your specific situation — whether your returns were accurate, whether you have unreported income, and how much exposure exists. Attorney Darrin T. Mish evaluates your position, prepares the appropriate response, and handles any resulting examination or resolution. This is time-sensitive. Free consultation.