What is IRS Letter 6413?

IRS Letter 6413 is a notice to a payer (like an employer or platform) that the IRS is requiring backup withholding on payments made to a taxpayer. This usually happens when the taxpayer fails to provide a correct Taxpayer Identification Number (TIN) or has underreported income.

White envelope stamped in red text: “IRS LETTER 6413 — IMPORTANT: IRS NOTICE ENCLOSED.” Represents an official IRS tax letter sent to taxpayers.

What is IRS Letter 6413?

White envelope stamped in red text: “IRS LETTER 6413 — IMPORTANT: IRS NOTICE ENCLOSED.” Represents an official IRS tax letter sent to taxpayers.

IRS Letter 6413 is a notice to a payer (like an employer or platform) that the IRS is requiring backup withholding on payments made to a taxpayer. This usually happens when the taxpayer fails to provide a correct Taxpayer Identification Number (TIN) or has underreported income.

Get Help!

What does IRS Letter 6413 mean for my crypto payouts?

If you receive crypto staking rewards, freelance income, or affiliate payments from a platform, and that platform receives this letter, they will begin withholding 24% from your payouts.

What to do next:

Illustration of a W-9 tax form with a pencil writing on it, symbolizing updating taxpayer information such as SSN or EIN.

1: Update your W-9 form with the correct SSN or EIN

2: Confirm your reporting history matches what the IRS expects

Document with a dollar sign beside a phone receiver, symbolizing contacting the payer to stop backup tax withholding after corrections are made.

3: Contact the payer to stop backup withholding once corrected

When to Seek Professional Help

CryptoTaxAudit helps freelancers, creators, and traders fix TIN mismatches and avoid unnecessary backup withholding on crypto income.

Get Help!

Additional Resources

Voluntary compliance letters