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What is IRS Letter 6160?

 

IRS Letter 6160 means the IRS is reviewing your Offer in Compromise (OIC) and needs more information. This offer allows you to settle tax debt for less than the full amount owed - but only if the IRS agrees you can’t pay more. The letter usually requests updated financial data or documents to move your application forward.

White envelope with bold red stamped text reading ‘IRS Letter 6160’ on the front.

What is IRS Letter 6160?

White envelope with bold red stamped text reading ‘IRS Letter 6160’ on the front.

IRS Letter 6160 means the IRS is reviewing your Offer in Compromise (OIC) and needs more information. This offer allows you to settle tax debt for less than the full amount owed - but only if the IRS agrees you can’t pay more. The letter usually requests updated financial data or documents to move your application forward.

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What Is an IRS Offer in Compromise (OIC) for Crypto Taxes?

Crypto investors often use OICs when IRS penalties from unreported crypto transactions become overwhelming. However, approval requires precision and full transparency.

What to do next:

Minimal navy line icon of a folder with dollar sign and Bitcoin symbols, representing financial documents for IRS Letter 6160.

1: Gather all requested financial documents - bank statements, crypto holdings, income

Minimal navy line icon of a calendar with a small clock, symbolizing IRS letter response deadline.

2: Respond by the deadline in the letter

Minimal navy line icon of a document with warning triangle, symbolizing incomplete or inaccurate IRS submission risk.

3: Do not submit incomplete or inaccurate information

When to Seek Professional Help

CryptoTaxAudit can guide you through the OIC process, help reduce your tax burden, and avoid rejections due to technical errors or missing data.

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Additional Resources

Voluntary compliance letters