Received IRS Letter 6173 or 6174? Here's What To Do
Received IRS letters 6174, 6174-A, and 6173?
While these letters are of varying degrees of seriousness, they are an initial step by the IRS that could lead to more serious ramifications, like investigations and audits.
In this article, we’ll break down everything you need to know about the letters and what the next steps are.
Why did you receive an IRS crypto letter?
If you have received a letter from the IRS, don’t worry yet; the letter doesn’t necessarily mean something is definitely wrong, especially if you’ve received 6174 or 6174-A.
Since 2019, the IRS has continued to intensify its scrutiny of cryptocurrency investors in the U.S, with thousands more people receiving these letters in 2025.
The letters warn users about potential issues with their crypto-related tax filings, and vary in severity; some are informational and require no action, while others demand amended returns or explanations.
The IRS may be blanket mailing people they know have cryptocurrency accounts. Many recipients appear to be former users of the Poloniex exchange, suggesting it may have provided data to the IRS.
At the same time, a letter from the IRS could become a precursor to an audit or investigation, so don’t take it lightly.
Use this opportunity to review your returns thoroughly, do the revisions you need to, and report your crypto gains accurately with a crypto tax software tool like Koinly.
What do IRS letters 6174, 6174-A, and 6173 mean?
There are three main kinds of letters that the IRS is sending out right now, and here’s what they mean:
IRS Letter 6174
Letter 6174 is less serious. It means that the IRS knows of your cryptocurrency accounts. It explains the taxation policy for crypto transactions and also says that if you haven’t filed returns previously or have made an error, you should rectify it quickly.
IRS Letter 6174-A
Letter 6174-A is sent when the IRS suspects you may have failed to report your crypto income, but it isn’t sure enough to escalate and send you Letter 6173.
It believes you may not have reported certain transactions and gives you detailed instructions regarding the proper filing of returns and reporting on income. It also asks you to take immediate corrective action if required.
Both these letters mention the next steps; the only difference is that these letters don’t come with a 30-day deadline, unlike 6173. Once again, you need to review your returns, make sure everything is in order, and file an amendment if required.
IRS Letter 6173
This is the most serious one. It’s sent when the IRS thinks you’ve probably failed to report crypto income, or you haven’t filed returns for one or more years between 2013 and 2017. Even if you have sent returns, there’s a chance you’ve missed out on some important form or schedule.
This letter requires a response within 30 days. If this is too short a time period for you, request an extension.
Here are some of the different scenarios that require action from your end:
Delinquent returns: If you haven’t filed income tax returns for any of the years from 2013-2017, you need to do this immediately.
Amended returns: If you filed your returns but made a mistake by failing to report your crypto income or underreporting the income, you can file an amended return using Form 1040.
Statement of facts: After cross-checking your returns and going through them with an expert, if you believe that you have filed them correctly, you just need to email/eFax a statement of facts to the ID/eFax number stated at the top of the letter. This should include your contact information, a complete history of previously reported income along with relevant documents, and a statement saying that all the information in the document is true, complete, and verified.
| IRS letter | Severity | Actions |
|---|---|---|
| IRS letter 1674 | Not severe | If you haven’t filed returns previously or have made a mistake, rectify this error. |
| IRS letter 1674-A | More severe | Take immediate corrective action by reviewing and filing your returns and reporting your income. |
| IRS letter 1673 | Most severe | Respond in 30 days: File income tax returns for previous years, file an amendment if you’ve made any mistakes or underreported, or email a statement of facts if your returns are correct and in order. |
If you have received a CP2000 notice, find out how to respond to CP2000 notices with our guide.
How does the IRS know I have crypto?
Crypto exchanges are required to report to the IRS through 1099 forms and provide any information on request (such as wallet address). Some exchanges known to do this are: Crypto.com, Kraken, Coinbase, Binance US, and more.
With the launch of ‘Operation Hidden Treasure’ in 2021, the IRS continues to tighten compliance and works with blockchain analytical companies such as Chainanalysis to crack down on tax evaders.
We are still seeing the effects of this bill to this day: Starting in 2026, centralized exchanges will also be required to report the purchase and sale cost basis of every digital transaction made by U.S customers.
Can the IRS seize my crypto?
Once the IRS classified crypto as property, they have been able to seize crypto in response to unpaid tax debt.
Depending on the severity of the case, you may incur a substantial fine under fail-to-pay, fail-to-file, accuracy, and/or civil fraud penalties — these penalties can lead to the seizure of your crypto.
However, seizure is usually a last resort should you fail to pay the crypto tax you owe. To avoid facing penalties, ensure that you accurately report your cryptocurrency taxes.
Use crypto tax software to get on track
If you don’t have adequate information about crypto taxes and don’t know where to begin, start by reading our comprehensive crypto tax guide on the subject.
It’s also a good idea to reach out to a tax accountant who can advise on your unique circumstances.
If you are ready to calculate your capital gains, you can use cryptocurrency tax software such as Koinly to generate a Form 8949 & Schedule D.
