IRS sends wave of crypto tax notice letters to investors

The U.S. Internal Revenue Service has recently been sending Letter 6174, a tax-reporting guidance notice, to cryptocurrency investors on a large scale, Bitcoin.com reported. Clinton Donnelly, CEO of crypto tax service provider Cryptotaxaudit, said dozens of people, including his clients, had reached out after receiving the notice, adding the IRS may be pressuring recipients to review past tax filings and make any needed corrections. Donnelly also said receiving the letter alone does not mean a tax law violation and urged investors not to file amended returns or submit materials to the IRS before fully understanding their filing status.