BTC holders getting this letter from the IRS? (Don't panic)
 | The other week, I got a letter from the IRS in the mail about my Bitcoin activity (Letter 6174) and I panicked way more than I should have. For a second, I genuinely thought I was getting audited. I was panicking, but I was also frustrated. I had to sell some of my sats to pay for some personal expenses last year. I have been trying my best to report taxes, even using CoinLedger to make sure everything was accurate for the October extension deadline. Like what the hell else does the IRS want me to do? Why am I getting a warning letter when I'm doing everything I can to stay compliant? Turns out it wasn’t just me. I posted on a tax sub and a bunch of other investors said they received it too — even some who’ve only HODLed and never sold. The theory from some commenters is that these letters are going to anyone the IRS knows holds BTC via 1099s from exchanges like Coinbase (maybe a fishing technique to get people who sold a significant amount to self-report?) Anyway, just sharing this to keep people informed. Hopefully, no one freaks out the way I did. TL;DR: IRS is sending Letter 6174 to BTC holders — not necessarily a sign of an audit. Don’t freak out. [link] [comments] |
