What is IRS Letter 6385?

IRS Letter 6385 is sent when the IRS identifies potential noncompliance in retirement plan filings, such as missing Form 5500, improper plan contributions, or late deposits. This applies to solo 401(k)s, IRAs, and other plans often used by small business owners and crypto investors.

White envelope stamped with red text reading 'IRS Letter 6339 – Important: IRS Notice Enclosed,' symbolizing an official IRS tax notice.

What is IRS Letter 6385?

White envelope stamped with red text reading 'IRS Letter 6339 – Important: IRS Notice Enclosed,' symbolizing an official IRS tax notice.

IRS Letter 6385 is sent when the IRS identifies potential noncompliance in retirement plan filings, such as missing Form 5500, improper plan contributions, or late deposits. This applies to solo 401(k)s, IRAs, and other plans often used by small business owners and crypto investors.

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Does the IRS Question Crypto Held in Self-Directed IRAs?

If you used a self-directed retirement plan to hold crypto, this letter may signal IRS scrutiny of contributions, valuations, or tax treatment.

What to do next:

1: Confirm the IRS claims by reviewing plan filings

Vector icon of documents with an exclamation mark and advisor silhouette, symbolizing consulting an IRS disclosure expert

2: Work with a tax professional to submit corrections or voluntary disclosures

Vector icon of a gavel striking a document with a warning triangle, symbolizing IRS enforcement and penalties.

3: Avoid excise taxes by responding within the stated deadline

When to Seek Professional Help

CryptoTaxAudit assists self-employed taxpayers and crypto investors in cleaning up retirement plan errors and avoiding IRS penalties.

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Additional Resources

Voluntary compliance letters