crypto.news 2025-06-28 18:30:00

IRS crypto letters spike over 750% as enforcement wave looms, CoinLedger Warns: report

U.S. crypto investors are receiving IRS warning letters at a dramatically higher rate, with CoinLedger reporting a 758% increase over the past 60 days. The spike has also been confirmed by accounting firms like Taxing Cryptocurrency, CoinLedger CEO David Kemmerer told The Block. Many recipients are everyday investors who are “shocked” to receive notices, despite believing they filed their taxes properly, according to CoinLedger’s Ben Yoder. Confusion often stems from wallet-to-wallet transfers and missing cost basis data—issues that may trigger IRS alerts even without tax evasion. You might also like: Immutable flips Ethereum in NFT volume: Can IMX’s double bottom hold? The most common letter, IRS Notice 6174, is educational, whereas more serious letters, such as 6173 and CP2000, may require responses and can lead to audits. Kemmerer warned the surge could be the start of a broader enforcement wave ahead of new Form 1099-DA rules, which will require crypto brokers to report detailed gain/loss data starting in 2026. Although former President Donald Trump has voiced support for eliminating taxes on crypto, no such legislation exists. Crypto analyst Adam Cochran recently mocked the idea of an executive order achieving such a change, highlighting that any tax reform would require approval from both the House of Representatives and the Senate. In April, however, Trump repealed an IRS rule that would have expanded the definition of a broker to include DeFi platforms. As tax scrutiny intensifies, CoinLedger advises investors to maintain accurate records, proactively track taxable events, and seek professional help if they receive serious IRS notices. Read more: XRP price rallies after Ripple CEO says cross appeal dropped, chapter done