IRS Letters 6173, 6174 and 6175

 

The IRS is sending out letters 6173, 6174, and 6174a to advise taxpayers of their tax obligations with respect to transactions involving virtual currency, which includes crypto-currency and non-crypto virtual currencies.

IRS Letter 6174-A

IRS Letter 6174-A advises the taxpayer that the IRS has information that the taxpayer had one or more accounts containing virtual currency but may not have properly reported any transactions properly.

The letter advises the taxpayer to file an amended or delinquent return, write “letter 6174-A” at the top of the first page of the return, include a copy of the letter, and mail the submission to the Internal Revenue Service, 2970 Market Street, Philadelphia, PA 19104.

IRS Letter 6174

IRS Letter 6174 advises the taxpayer that the IRS has information that the taxpayer had one or more accounts containing virtual currency but may not know the requirements for reporting transactions involving virtual currency. The letter advises the taxpayer to file an amended or delinquent return, write “letter 6174” at the top of the first page of the return, include a copy of the letter, and mail the submission to the Internal Revenue Service, 2970 Market Street, Philadelphia, PA 19104.

IRS Letter 6173

The IRS uses Letter 6173 to advise taxpayers that the IRS has information that the taxpayer has failed to report one or more virtual currency transactions for tax years 2013-2017. The letter also includes a specific response date. The letter advises the taxpayer to mail a response, including an amended or delinquent return, if appropriate, with “Letter 6173” written at the top of the first page of the return, along with a copy of the notice to the Internal Revenue Service, 2970 Market Street, Philadelphia, PA 19104.

Action Required by Taxpayer

If a taxpayer receives any of the above letters, the taxpayer should do the following:

File any delinquent or amended return and report the virtual currency transaction(s). If more time is needed, the taxpayer should send a request for a 30-day extension to the address below by the respond by date shown at the top of Letter 6173.

Returns should be sent to the Internal Revenue Service, 2970 Market Street, Philadelphia, PA 19104 and should include “Letter 6173” (or “Letter 6174” or “Letter 6174-A”) at the top of the first page of the amended or delinquent return.

A copy of the letter also should be included with the submission.

If a return has been filed but the taxpayer made a mistake, such as not reporting the virtual currency transaction(s), or incorrectly calculating income, gain or loss, the taxpayer should file an amended return.

If the taxpayer believes that he/she has followed all tax and information reporting requirements relating to their virtual currency account(s), the taxpayer should mail or eFax the following to the address or eFax number shown at the top of the letter:

1. A statement of facts explaining the taxpayer's position (and including a complete history of previously reported income from virtual currency transactions);

2 The taxpayer's contact information (including telephone number and address for receiving mail); 3. The taxpayer should include the following signed and dated statement:

“I, ____________, declare under penalties of perjury that I have examined this entire document, including all attachments and accompanying statements, and that the enclosed is true, correct, and complete.

I also understand with respect to any submission that the IRS reserves the right to make further contacts with me and my representatives to clarify any written explanation or any other documents.

Statements and documents sent under this option will be checked against information received from banks, financial advisors, and other sources for accuracy".

Freeman Tax Law Can Help

The Attorney's and CPA's at Freeman Tax Law have extensive experience in dealing with cryptocurrency issues and the IRS.  Please contact us to discuss your personal tax situation. The first consultation is free, and of course, confidential.