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IRS Letters 6174, 6174-A and 6173: What to do
Received IRS Letter 6174, 6174-A, or 6173? Learn whether to respond, how to review past crypto reporting, and what to do if a return needs correction.
IRS Letter 6174 and Letter 6174-A generally don't require a reply, but you do need to correct inaccurate or missing crypto tax reporting. Letter 6173 requires action by the date printed on the letter, even if you believe you reported everything correctly. That distinction determines whether your next step is checking a return, correcting it, or sending the IRS an explanation.
Receiving an IRS letter can be unsettling, especially when you've already filed. These letters ask you to check your crypto reporting; receiving one alone doesn't establish a tax bill, prove you made an error, or mean an audit is underway. The letter number and your actual reporting determine what comes next.
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Do I need to respond to my IRS crypto letter?
For Letter 6174 or 6174-A, review your reporting and correct any errors or unfiled returns. You ordinarily don't need to send a response. For Letter 6173, act by the printed “respond by” date, including when your return is accurate.
| Letter | Reply required? | Where to find applicable timing | Next action |
|---|---|---|---|
| IRS Letter 6174 | No reply required | No reply deadline in the IRS sample | Check your crypto reporting. Correct inaccurate returns or file missing returns. |
| IRS Letter 6174-A | No reply required | No reply deadline in the IRS sample | Check for reporting errors and correct them. Read any later IRS correspondence separately. |
| IRS Letter 6173 | Yes, action is required | The “respond by” date on your letter | Submit the required explanation or complete the applicable filing and response steps. |
Follow the directions in your actual letter, including any deadline and separate destinations for returns and correspondence, as the IRS's voluntary-compliance guidance instructs.
For 6173, put the response date on your calendar before starting your review.
If you need help bringing your exchange and wallet activity together for that review, you can review your crypto activity with CoinTracker.
What the letter means and how to verify it
The IRS has information indicating that you have or had an account containing crypto. Letter 6174 explains reporting obligations. Letters 6174-A and 6173 raise concerns about whether you met those obligations. A reporting concern still needs to be checked against what you actually filed. Any additional tax, interest, or penalties follow the actual reporting and payment facts, not receipt alone.
If you reported correctly, the applicable letter determines whether you must explain that to the IRS.
A CP2000 notice follows a different process involving proposed changes to your return. Use the instructions for that notice if that's what you received. Our explanation of IRS crypto tax letters offers broader context.
If something about the letter seems suspicious, use the IRS's notice and letter verification guidance and call 800-829-1040 to verify it independently. An official sample can help you recognize wording, but matching a sample doesn't authenticate your letter. Your IRS Online Account displays only certain notices, so an absent letter isn't proof of a scam.
A letter directing you to register for a “Digital Asset Compliance Portal” is a scam. The IRS warns about fake crypto letters using QR codes to direct recipients to this nonexistent portal. Don't scan the code or respond, and never share wallet recovery phrases or private keys.
What to do after Letter 6174 or 6174-A
Check the years and reporting issues identified in your letter, then compare the relevant filed returns with your crypto records. Look at reported gains, losses, and crypto income. Your result determines the next action: keep an accurate return as filed, amend an incorrect return, or file a missing original return.
To amend a return means to correct one you've already filed. An unfiled return needs an original filing, even when it's late.
| Reporting situation | 6174/6174-A action | 6173 action | Filing or response task |
|---|---|---|---|
| Your filed return is accurate | No reply or amendment needed | Explain compliance by the printed response date | For 6173, send the required statement, supporting copies, contact details, and signed declarations. |
| Your filed return is incorrect or incomplete | Amend the affected return | Amend the return and complete the letter-response steps | Prepare Form 1040-X and applicable changed forms for each affected year; send required response copies separately. |
| You haven't filed a required return | File the missing original return | File the missing original and complete the letter-response steps | Prepare the delinquent original return for that year, rather than using Form 1040-X. |
For mailed corrections, write “Letter 6174” or “Letter 6174-A,” as applicable, at the top of the return's first page and use the letter's return-processing instructions.
IRS Letter 6174
The IRS's published Letter 6174 sample say you don't need to respond. If your review confirms accurate reporting, keep the supporting records. The letter alone doesn't require an amendment. If you find an error or an unfiled return, complete the applicable correction or original filing.
IRS Letter 6174-A
The IRS's published Letter 6174-A sample also say no reply is needed. Its wording raises possible improper reporting and warns that further enforcement correspondence may follow. Correct any actual reporting problems you find, and handle subsequent correspondence according to its own instructions.
How to respond to IRS Letter 6173
Act by the “respond by” date on your Letter 6173. The IRS's Letter 6173 instructions provide paths for accurate reporting, an incorrect return, and a missing return. Filing correctly doesn't remove the response requirement.
If you already reported correctly
Send a written explanation establishing your compliance. Include the facts supporting your position, a complete history of previously reported crypto income, and the actions you took to meet U.S. reporting requirements. Attach copies of previously filed documents that establish that reporting, including applicable returns, forms, and schedules.
Provide your telephone number, complete address, and mailing address if different. Include both signed and dated declarations requested in the letter:
- The declaration under penalties of perjury that you examined the entire submission and its attachments and that it is true, correct, and complete.
- The acknowledgment that the IRS may contact you or your representatives for clarification and check your explanation and documents against information from banks, financial advisers, and other sources.
Use the declaration wording in your letter. If unresolved records prevent you from substantiating the required certification, get help from a tax professional before signing it.
If your return is incorrect or missing
Correct a previously filed individual income tax return using Form 1040-X. File a separate amendment for each affected year and include the applicable new or changed forms and schedules. The IRS amendment instructions explain how to assemble the filing. For a paper amendment, attach a completed, updated Form 1040, 1040-SR, or 1040-NR showing your changes behind Form 1040-X.
If you never filed a required return, prepare a delinquent original return for that year. Follow the IRS's past-due return filing instructions and the submission directions in your letter. Use that year's forms and instructions. Our overview of crypto tax forms explains the role of the forms you may need.
Complete the required letter response as well as the filing. Sending a copy for the IRS's correspondence review is separate from filing the return for processing.
What to send, where to send it, and requesting more time
Match your submission to the reporting situation above, then complete these steps:
- Assemble the applicable materials. Include your explanation and declarations for the accurate-reporting path, or copies of the returns you file for a correction or missing-return path.
- Separate filings from correspondence. Mail original or amended returns for processing as directed. Write “Letter 6173” at the top of the first page as instructed, and include copies in your letter response.
- Use the designated submission routes. Send correspondence to the designated response address. Use eFax only if your letter expressly permits it. The IRS sample prohibits filing original or amended returns for processing by eFax. It limits response transmissions to 10 MB; larger files must be mailed or split into smaller transmissions.
- Submit by the printed date. Keep copies and proof of delivery or transmission. The IRS doesn't acknowledge receipt of voluntary-compliance responses.
If you need more time, the 6173 instructions allow you to request a 30-day extension. Send the request to the designated address by the printed response date. A request doesn't automatically grant an extension, and the letter doesn't give everyone a 30-day initial response period.
If the IRS doesn't hear from you by the required date, it may refer your account for examination. An audit isn't an automatic consequence of receiving the letter.
How to check your crypto records against your return
Compare the crypto reporting you filed with the underlying activity for the affected years. Recover enough history to support the figures, including earlier acquisition records needed to calculate gains and losses.
- Find your filed reporting. Retrieve the returns, applicable schedules, and tax reports used to prepare them. For 2025 or later activity, also compare any Form 1099-DA you received with your transaction and acquisition records.
- Recover transaction history. Download exchange records and locate activity from the wallets you used. Include acquisition records for assets later sold, even if you acquired them in an earlier year.
- Compare sales and other disposals. Check the amount received and cost basis, the tax cost assigned to the crypto disposed of. Sales proceeds alone aren't your gain. Capital-asset crypto sales generally use Form 8949 and Schedule D.
- Check income separately. Compare reported crypto income such as staking rewards with the supporting activity. Identify missing transactions or incorrect calculations before preparing revised figures.
If you're using CoinTracker, follow its account-accuracy checks, including reviewing flagged transactions for the selected year. Reports depend on the history you provide; resolve missing acquisitions or activity before relying on the reports.
Hypothetical example: Your filed Form 8949 includes one crypto sale, but downloaded exchange history shows a second capital-asset sale you omitted. Find the acquisition records and calculate that sale's gain or loss, rather than reporting its entire proceeds as a gain. Prepare the applicable revised forms and amend the affected return. The correction's tax effect follows the full calculation. If you received Letter 6173, also complete its separate response steps; fixing the return alone doesn't complete the correspondence task.
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Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
Do I have to reply to Letter 6174 or 6174-A?
No, the standard instructions for these letters don't require a reply. Review your reporting and correct an inaccurate return or file a required missing return. No reply requirement doesn't remove the need to fix a reporting problem.
What if I already reported my crypto correctly?
For 6174 or 6174-A, no amendment or reply is needed when your reporting is accurate. Keep the supporting records. For 6173, send the required compliance explanation, supporting copies, contact information, and signed declarations by the printed response date.
Does receiving a crypto letter mean I am being audited?
No. Receiving 6174, 6174-A, or 6173 alone doesn't establish that an audit is underway. The IRS is asking you to check or substantiate your reporting. Missing a required 6173 response may lead to examination referral; later correspondence may require a different action.
Can I request more time to respond to Letter 6173?
Yes. The instructions allow a request for a 30-day extension, submitted by the printed “respond by” date. Send it to the designated address. Keep the request and submission evidence, and don't assume extra time has been granted merely because you asked.
What if I cannot recover all my transaction records?
Start with exchange exports, archived statements, and wallet histories, then look for the acquisition records tied to missing cost basis. Identify the unresolved transactions before preparing corrected figures. For 6173, use the extension-request procedure if needed while working on the required response, and address unresolved support before signing the compliance declarations.