The IRS has begun sending letters to people with digital currency transactions who may have failed to report income and pay taxes, or who did not report their transactions properly. By the end of August, more than 10,000 taxpayers will receive the letters, targets the IRS says it obtained through various ongoing IRS-compliance efforts. According to the head of the IRS, Commissioner Chuck Rettig:
There are three versions of the IRS missive: Letter 6173, Letter 6174 or Letter 6174-A. They all stress their tax and filing obligations and how to correct past errors. They refer to information on IRS.gov, including which forms and schedules to use and where to send them. Recipients of the IRS letter are on notice, as the IRS thinks they may need to report. So, take a look at what you reported, and fix whatever you missed.