IRS Sends Tax Notice 6174 to Cryptocurrency Users

The IRS is sending a large number of Notice 6174 to cryptocurrency taxpayers, reminding recipients to review their past filings. Clinton Donnelly, CEO of Cryptotaxaudit, stated that dozens of individuals have recently contacted the company, indicating that receiving the notice does not imply any wrongdoing. Donnelly estimates that the IRS sends about 10,000 such notices each month. Notice 6174 serves as a voluntary compliance reminder, informing taxpayers that the IRS is aware of their cryptocurrency transaction information and requesting them to verify whether they have fulfilled their tax reporting obligations. The notice does not specify any particular reporting issues and typically does not require a direct response. Donnelly advises recipients to read the notice carefully and understand their own situation, and not to rush into modifying their filings or submitting information to the IRS.