IRS letters targeting digital asset holders are on the rise – Clear Start Tax outlines what crypto traders need to know to protect themselves.
IRVINE, CA / ACCESS Newswire / July 9, 2025 / With the IRS once again sending out crypto-related warning letters, Clear Start Tax is urging digital asset holders to take their reporting obligations seriously. As part of a renewed enforcement push, the IRS is identifying taxpayers who failed to report crypto income and warning them to amend their returns or face possible penalties.
“Many people still assume crypto is anonymous or invisible to the IRS,” said the Head of Client Solutions at Clear Start Tax. “But with new reporting tools, exchange partnerships, and blockchain tracing technology, that’s just not true anymore. The IRS knows more than most traders think – and they’re acting on it.”
Why the IRS Is Targeting Crypto Again in 2025
In 2023 and 2024, the IRS expanded its crypto enforcement tools and increased partnerships with major exchanges. Now, in 2025, those efforts are bearing fruit. Taxpayers are receiving IRS Letter 6173, CP2000 notices, and other correspondence regarding unreported or underreported digital currency transactions.
According to Clear Start Tax, traders may be at risk if they:
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Failed to report crypto sales or conversions on past returns
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Didn’t include staking or mining income
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Used offshore or non-U.S. exchanges without disclosing activity
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Claimed incorrect losses or neglected basis tracking
“These letters aren’t random,” added the Head of Client Solutions. “They’re usually based on real data from exchanges or blockchain analysis. Ignoring them can trigger audits, penalties, or even criminal investigation if the IRS suspects willful evasion.”
Common Crypto Filing Mistakes to Avoid
Even honest filers make errors when it comes to crypto, often because the rules feel unclear. Clear Start Tax highlights some of the most common mistakes that can lead to trouble:
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Not reporting transactions under $10,000 – The IRS requires reporting of all taxable events, no matter the size.
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Using wallet balances instead of transaction history – Gains must be calculated from a cost basis, not just ending value.
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Omitting airdrops or hard forks – These are generally considered taxable income, even if the recipient didn’t request them.
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Mixing personal and business use wallets – Without proper record-keeping, deductions and expenses can be disallowed.
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Failing to file FBAR or Form 8938 – For foreign exchanges, these additional disclosures may apply.
Crypto Traders Can Still Qualify for IRS Relief Programs
Clear Start Tax helps clients file amended returns, respond to crypto notices, and regain IRS compliance. Many investors may still be eligible for penalty relief, interest reduction, or settlement options under the IRS Fresh Start Program.
By answering a few simple questions, taxpayers can find out if they’re eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.
This program can be a lifeline for crypto traders looking to fix past mistakes and avoid escalating consequences.
What to Do If You Received a Crypto Letter From the IRS
Traders who’ve received IRS notices like CP2000, Letter 6173, or Letter 6174 should respond quickly. These letters typically flag a discrepancy in reported income and give taxpayers a chance to amend returns or explain the issue.
Clear Start Tax advises:
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Don’t ignore the letter – even if you think it’s incorrect
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Gather exchange records and transaction logs
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Check for cost-basis errors or missing taxable events
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File amended returns if needed
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Consult a professional to ensure proper reporting and penalty mitigation
Don’t Wait for the IRS to Take Action
Clear Start Tax helps crypto investors respond to IRS notices, amend past filings, and bring their accounts into full compliance. In many cases, clients may still qualify for relief through the IRS Fresh Start Program or other negotiated settlements.
About Clear Start Tax
Clear Start Tax is a full-service tax liability resolution firm that serves taxpayers throughout the United States. The company specializes in assisting individuals and businesses with a wide range of IRS and state tax issues, including back taxes, wage garnishment relief, IRS appeals, and offers in compromise. Clear Start Tax helps taxpayers apply for the IRS Fresh Start Program, providing expert guidance in tax resolution. Fully accredited and A+ rated by the Better Business Bureau, the firm’s unique approach and commitment to long-term client success distinguish it as a leader in the tax resolution industry.
Need Help With Back Taxes?
Click the link below:
https://clearstarttax.com/qualifytoday/
(888) 710-3533
Contact Information
Clear Start Tax
Corporate Communications Department
seo@clearstarttax.com
(949) 535-1627
SOURCE: Clear Start Tax
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