The LTR 6174-A sits between the educational LTR 6174 and the mandatory-response LTR 6173. It suggests that you may have failed to report cryptocurrency transactions and recommends that you review your returns and file amended returns if necessary. While technically no response is required, ignoring it is unwise.
What the IRS Knows
The LTR 6174-A means the IRS has information linking you to cryptocurrency activity. They have transaction data from exchanges, blockchain analytics, or other sources. The letter is more pointed than the purely educational 6174 — it specifically suggests you may have underreported.
What You Should Do
Review your tax returns for all years in which you had any cryptocurrency transactions: buying, selling, trading, earning through mining or staking, receiving airdrops, participating in DeFi protocols, or receiving payment in crypto. If any of these transactions weren't reported, file amended returns.
Voluntary correction before the IRS escalates to the LTR 6173 (which requires a response) demonstrates good faith and typically results in lower penalties. The IRS views proactive correction more favorably than correction only after enforcement.
Cost Basis Reconstruction
If you need to report crypto transactions but don't have complete records, work with your exchange accounts, wallet histories, and blockchain explorers to reconstruct your transaction history and cost basis. Accurate basis reporting is critical — reporting $0 basis when you actually have basis means paying tax on money that isn't income.
If you've received an LTR 6174-A, call us at (813) 229-7100. Don't wait for the 6173.