--- title: "Huge Number of Crypto Users Suddenly Getting Terrifying Letters From the IRS" description: "Crypto bros are freaking out amid a surge in letters from the Internal Revenue Service about their digital currency holdings. " date: "2025-06-27" modified: "2025-06-27" authors: - name: "Noor Al-Sibai" job_title: "Senior Staff Writer" link: "https://futurism.com/authors/nooralsibai" url: "https://futurism.com/crypto-irs-letters" categories: - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "crypto" - "government" - "irs" - "taxes" --- # Huge Number of Crypto Users Suddenly Getting Terrifying Letters From the IRS ![Crypto bros are freaking out amid a surge in letters from the Internal Revenue Service about their digital currency holdings. ]() *\Image: Getty / Futurism\* Crypto bros are freaking out amid a surge in letters from the Internal Revenue Service about their digital currency holdings. As [*Bitcoin.com*]() and [other sites report](), there has been a whopping 758 percent spike in customer mentions of IRS letters over the past two months alone, suggesting that there may be a taxation crackdown in progress. We don't know exactly how many people have gotten these troubling letters — but apparently, there are a few different types going out. According to Coinledger, the crypto tax software firm that compiled the new numbers, recipients either received [letters 6174 or 6174-A](), which are sent as warnings and require no response, or [CP2000](), in which the IRS has already decided how much you owe and can punish you for not doing so. As Coinledger CEO David Kemmerer told *Bitcoin.com*, a lot of the people being contacted by the IRS have long reported their crypto holdings to the agency — but the precedent it sets is pretty strange regardless. "We’re seeing a wave of confusion and fear among everyday crypto investors, many of whom made their best effort to report taxes accurately," Kemmerer said. "This kind of enforcement is only going to accelerate." As demonstrated by a disgruntled user [posted on the r/cryptotax subreddit]() earlier this year, those who have steadily reported their crypto holdings over the years appear to be the first wave to get these scary letters. "I believe I have reported all my crypto transactions with my CPA," the user noted. "\[I've\] been reporting them for years. I'm not sure what to do with this letter as I think I have correctly filed everything." To Kemmerer's mind, targeting those sorts of individuals may be an error. "The IRS has more visibility into crypto than ever before," he said. "But without accurate cost basis data, even compliant investors can get mistakenly flagged." Coincidentally enough, these IRS actions come after president Donald Trump's administration ordered the government-sponsored lenders Fannie Mae and Freddie Mac to [consider crypto holdings as assets]() when assessing mortgage loans. As the prediction marketplace [Polymarket joked on X](), that means the country's biggest lenders will now be forced to assess "Fartcoin" and other dumb meme tokens when considering creditworthiness. **More on crypto:** [*Hawk Tuah Girl Live Event Devolves Into Chaos After Crypto Disaster*]() ## Author At Futurism, I've often been drawn to unpacking the narratives that underlie technological, scientific and medical progress, with a special interest in areas of conflict and ambiguity that end up setting agendas and steering the fates of both elites and the hoi polloi. I'm a committed generalist, but I often find myself returning to work involving NASA and the private space sector, the effects of AI on media and society, and the mechanics of the pharmaceutical industry, with a specific focus on the spread of GLP-1 drugs like Ozempic and Wegovy. Prior to Futurism, I worked for publications ranging from Media Matters and Truthdig to Raw Story and Bustle. I'm also the author of "Myspace Scene Queens," a 2024 title in Instar Books' acclaimed "Remember the Internet" series. My work at Futurism has been cited by outlets including the New Yorker, Slate, Nieman Lab, the Verge, the MIT Technology Review, the Sunday Times, and the Daily Beast. I grew up in North Carolina, attended the University of North Carolina at Asheville, and now live in Brooklyn, New York. In my free time, I'm an avid reader and music fan; you can probably find me at a local poetry reading, concert, underground rave, or DJ set. I'm the proud parent of an ineffable orange cat named Mee-Mow. ### Author social links [Bluesky]()