What is IRS Letter 6585?

IRS Letter 6585 notifies you of IRS action regarding COVID-era tax credits, such as the Employee Retention Credit (ERC) or other relief programs. It may propose a disallowance or demand repayment if the IRS believes you claimed too much or didn’t qualify.

White envelope stamped in red with the words “IRS Letter 6585 – Important: IRS Notice Enclosed,” symbolizing an official IRS communication about crypto tax reporting.

What is IRS Letter 6585?

White envelope stamped in red with the words “IRS Letter 6585 – Important: IRS Notice Enclosed,” symbolizing an official IRS communication about crypto tax reporting.

IRS Letter 6585 notifies you of IRS action regarding COVID-era tax credits, such as the Employee Retention Credit (ERC) or other relief programs. It may propose a disallowance or demand repayment if the IRS believes you claimed too much or didn’t qualify.

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Why did I receive IRS Letter 6585 for my crypto business?

Some crypto-related businesses wrongly claimed the ERC or misunderstood how crypto mining and digital operations qualify under IRS rules, triggering this letter.

What to do next:

Flat vector icon showing a calculator and IRS document with teal checkmarks, representing reviewing eligibility and credit calculations.

1: Review eligibility guidelines and credit calculations

Flat vector icon showing stacked IRS forms with a teal paperclip and arrow, representing submitting documentation or repayment preparation.

2: Submit documentation to justify your claim or prepare to repay

Flat vector icon showing an IRS envelope with an exclamation mark and clock, representing repayment demands and escalating penalties.

3: Don’t ignore repayment demands-penalties can escalate quickly

When to Seek Professional Help

CryptoTaxAudit helps digital businesses navigate ERC compliance and defend against IRS disallowance or refund clawbacks tied to COVID relief.

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Additional Resources

Voluntary compliance letters