Are IRS crypto emails and letters a scam?

An IRS crypto email is almost always a scam. The IRS says it does not contact people by email, text or social media without their permission, so a message claiming you owe tax on crypto and must click a link or pay in crypto is a strong sign of fraud. Real IRS letters about crypto do exist, but they arrive by post and can be verified.

How does an IRS crypto scam work?

Scammers borrow the IRS name because tax notices create urgency. A typical fake message claims there is a problem with crypto gains, an unpaid balance or a frozen refund, and pushes the reader to click a link, sign in or pay quickly.

The IRS describes how it really behaves. It mostly contacts people by regular mail and usually sends a bill before any collection. It does not threaten arrest or demand payment without letting people question or appeal the amount. TIGTA, the Treasury watchdog, adds that the IRS never asks for payment by gift card, prepaid card or wire transfer.

Crypto is not on the IRS list of accepted payment methods, which covers bank account, card, digital wallet, wire, check or money order, and cash. A demand to send crypto to settle a tax bill does not match how the IRS takes payment. Links in such messages may also lead to lookalike sites, a trick covered in phishing and wallet drainers.

Is an IRS crypto letter real or fake?

Some IRS crypto letters are genuine. In July 2019 the IRS began mailing Letters 6173, 6174 and 6174-A to taxpayers with virtual currency transactions. More than 10,000 taxpayers were expected to receive them. The letters urged people to review their returns and, where needed, amend them and pay back tax, interest and penalties. How crypto audits work is covered in does the IRS audit crypto.

Crypto brokers also now send Form 1099-DA, which reports sales of digital assets made from January 1, 2025. That form comes from the platform, not the IRS, and the rules behind it are explained in how crypto is taxed in the US.

How do you check a fake IRS crypto tax notice?

The IRS gives a simple test:

1. Find the number. Real notices show a CP or LTR number in the upper right corner.
2. Search it. Look up that number on IRS.gov.
3. Call the IRS. If the notice is not found or looks suspicious, call 800-829-1040 rather than any number printed on the letter.
4. Check the account. Some notices also appear in a taxpayer's IRS online account.

How do you report an IRS crypto scam?

The IRS says not to reply, click links or open attachments. Forward a fake email to [email protected], ideally as an attachment. For a text, send the sender's number, the message and the date and time to the same address, and forward the text to 7726. Impersonation can also be reported to TIGTA and the FTC.

Anyone who has already paid should follow what to do if you are scammed.