The IRS wants to make sure crypto investors are reporting their transactions correctly—and that’s why they’re sending out IRS Letter 6174-A in 2025.
This isn’t a bill or a penalty. It’s an informational notice, giving you the chance to review your crypto tax filings and fix anything that’s off.
With digital asset tax rules evolving, many investors are unsure if they’ve filed correctly. That’s exactly why this letter exists—to give you a chance to review and fix potential mistakes before they snowball.
At Gordon Tax, we specialize in helping crypto investors understand and manage their tax obligations. If you’re feeling uncertain about your past filings, we’re here to make things clearer.
What is Letter 6174-A for Crypto?
IRS Letter 6174-A is an informational notice sent to taxpayers who may have used cryptocurrency and possibly made mistakes on their tax returns. It doesn’t require a reply, but it’s an opportunity to make sure everything is accurate.
The IRS is using these letters to remind crypto investors to:
- Report all digital asset transactions, including staking, DeFi, and NFTs
- Correct any past mistakes by amending returns if necessary
- Stay current with crypto tax requirements
Why Did I Receive IRS Letter 6174-A?
If you’ve ever received a 1099 related to crypto—such as Form 1099-MISC, commonly used to report staking rewards, or Form 1099-B reporting capital gains—then the IRS has received it, as well. Your tax returns may not match this information reported by third parties.
Receiving this letter means:
- The IRS has information suggesting you’ve engaged in crypto transactions
- You might have left off a wallet or misreported something on past tax returns
- They’re giving you a chance to fix it voluntarily before taking further enforcement actions
Exchanges that report to the IRS include:
What Should I Do If I Received This Letter?
Don’t worry: IRS Letter 6174-A is nothing new, and our team at Gordon Tax has helped many clients respond to this warning. If there are any problems with your previous crypto tax returns, it’s best to catch them and fix them early on—and the IRS is giving you a chance to do just that.
By acting early, you can likely avoid a tax audit, reduce IRS penalties, and create a payment plan if you have tax debt. Alternatively, we may find that your initial tax returns were correct. If so, you can confidently respond to the IRS and move on with your life.
Here’s what our crypto tax experts recommend:
- Don’t Panic—Review Your Returns
Have a specialist look over your crypto tax returns for the year(s) mentioned in Letter 6174-A. Remember, not all tax pros understand virtual currency, so be sure to test your CPA’s crypto knowledge. - Correct Any Gaps
If something is off, amending your returns now can help you avoid penalties later. And remember, if you owe money, you don’t have to pay right away or all at once. - Get Specialist Support
Crypto taxes can be complex, but they don’t have to be stressful. As cryptocurrency tax specialists, we can help you sort through your transactions, ensure everything is accurate, and guide you on the best next steps.
A Quick Refresher on Crypto Tax Rules
Cryptocurrency is treated as property by the IRS, which means it’s subject to capital gains tax—just like stocks or real estate. But that’s not all. Different types of crypto activity can trigger different tax rules:
- Trading or selling crypto: Capital gains or losses on every sale, trade, swap, or disposition
- Mining and staking rewards: Taxable as income when received
- DeFi and NFT transactions: May involve both income and capital gains; Many legal gray areas
These rules can get complicated fast, so it’s important to understand how your activity is taxed. For a detailed breakdown, check out this guide: How Is Crypto Taxed? IRS Rules and How to File →
Respond to Letter 6174-A with Confidence
IRS Letter 6174-A is your chance to get ahead of any issues—and we’re here to help. Whether you’re unsure about a few trades or need a full review of your crypto activity, we’ll give you clear, expert guidance every step of the way.
Let’s make sure your crypto taxes are done right. Schedule a consultation with our crypto tax team and get the confidence you need to move forward.