Cryptotaxaudit CEO Clinton Donnelly reported a rise in IRS Letter 6174 notices sent to cryptocurrency taxpayers, saying dozens of people, including his firm’s clients, had contacted it after receiving one. The notices say the IRS has information about recipients’ virtual currency accounts and ask them to review their tax reporting, but they do not identify specific errors or establish wrongdoing.
Donnelly said Letters 6174 and 6174-A generally do not require a direct response. He advised recipients to read the instructions and understand their position before amending returns or sending information to the IRS.
