How it works
Letter 6173 is the one crypto compliance letter that requires a response by a stated deadline. It states that the IRS has information suggesting you failed to report virtual currency transactions and asks you to file or amend returns, or to explain under penalty of perjury why your filings are correct. The other two letters, 6174 and 6174-A, are educational and need no reply.
Why it matters
The response is a signed statement to the IRS. Ignoring the letter can lead to an audit; answering it carelessly can create the record used against you. The letter usually follows a summons or broker data, so the IRS already has specifics.
Example
A taxpayer receives Letter 6173 covering 2019 through 2021. Rather than responding directly, she engages counsel, who obtains her IRS transcripts, reconstructs the years under privilege, and files amended returns with a cover response before the deadline.
Related: Letters 6174 and 6174-A, attorney-client privilege. Read more: responding to IRS Letter 6173.
