IRS Sends Crypto Audit Letters, but Trump Allegedly Exempt

The US Internal Revenue Service (IRS) has been sending letters to taxpayers suspected of engaging in cryptocurrency transactions, as part of its crypto tax audit system.

The agency issues three types of warning letters: Letter 6173, Letter 6174, and Letter 6174-A. While receiving one does not necessarily mean a taxpayer is being formally audited, it requires them to review their returns and correct any errors if necessary.

However, there are allegations that President Donald Trump may be exempt from these audits. The Citizens for Responsibility and Ethics in Washington (CREW) has filed an amicus brief against the IRS, arguing that an alleged arrangement involving the president, the IRS, and Treasury officials is protecting him and his family from certain tax audits.

The lawsuit centers on a $1.776 billion 'anti-weaponization fund' and an alleged IRS immunity order that CREW claims could give President Trump, his family, and affiliated businesses special protection from tax enforcement.