Clinton Donnelly@CryptoTaxFixer
I continue to be dismayed and outraged by the IRS’s use of Letters 6173 and 6174 against crypto holders who owned digital assets in prior years. These letters feel like a harassment tactic, and here’s why.
These letters are being sent to crypto holders stating:
“We know you owned cryptocurrency between 2016 and 2020.”
“We are concerned that you may not have reported your income correctly.”
“Please sign and return a sworn statement confirming your tax returns were accurate.”
This sworn statement (Jurat Statement) acts as an affidavit, meaning, if you sign it and later the IRS finds discrepancies, you could face serious legal exposure.
The IRS generally has three years to audit a tax return, called the Statute of Limitations. In 2025, that means they can only go back to 2022, not 2016 to 2020 like these letters claim.
🚨 Exceptions to the 3-Year Rule:
• If you underreported income by 25% or more, the IRS gets six years, but that still only goes back to 2019.
• If the IRS proves fraud, there’s no time limit, which is likely why they want you to sign this affidavit.
By signing, you’re giving the IRS a weapon against you, potentially opening yourself up to fraud accusations and unlimited audits.
There is No Legal Obligation to Sign. They’re Overreaching!
Let me be clear:
• You do not have to sign and return this document.
• The IRS missed their window to audit many of these years.
• This is an intimidation tactic rather than legitimate tax enforcement.
If you receive one of these letters, schedule a consultation with us at cryptotaxaudit.com
Please share this message. Knowledge is Power!
