What is IRS Letter 6290? Crypto Tax Guide & Next Steps

What is IRS Letter 6290?

IRS Letter 6290 is part of the IRS's voluntary compliance initiative and typically relates to estate or gift tax issues, including unreported transfers of wealth. It may involve crypto assets gifted or transferred without proper valuation or documentation.

White envelope stamped “IRS Letter 6290 – Important: IRS Notice Enclosed.

What is IRS Letter 6290?

Graphic of IRS Letter 6290 envelope with red “Important: IRS Notice Enclosed” stamp.

IRS Letter 6290 is part of the IRS's voluntary compliance initiative and typically relates to estate or gift tax issues, including unreported transfers of wealth. It may involve crypto assets gifted or transferred without proper valuation or documentation.

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Why Did I Receive IRS Letter 6290?

If you’ve transferred large amounts of cryptocurrency (such as Bitcoin or Ethereum) as a gift or inheritance, this letter may be triggered - especially if the value was significant.

What to do next:

Vector icon of stacked Form 709 sheets with bookmark tab, symbolizing review of gift tax or estate filings.

1: Review your past filings related to Form 709 (Gift Tax) or estate reporting

Vector icon of digital coin on clipboard with checkmark, symbolizing fair market value reporting of crypto transfers.

2: If crypto was transferred, determine if the fair market value was properly recorded

Vector icon of open folder with pencil and documents, symbolizing amended returns or supporting documentation.

3: Consider amending returns or providing supporting documentation

When to Seek Professional Help

CryptoTaxAudit helps clients resolve gift and estate tax issues involving crypto and ensure they meet IRS valuation and reporting requirements.

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Additional Resources

Voluntary compliance letters