stopped at one detail in this IRS story because the number is hard to ignore.

According to crypto tax expert Clinton Donnelly the IRS may be sending roughly 10000 crypto related letters every month. He says this has reportedly continued for around two years.

That does not mean 10000 people are being audited every month.

The IRS uses different letters for different levels of compliance.

Letter 6174 is generally a warning asking taxpayers to review their crypto reporting.

Letter 6174-A goes further and gives more specific guidance.

Letter 6173 is the serious one because the taxpayer has to respond and sign a statement under penalties of perjury.

So receiving an IRS crypto letter does not automatically mean someone is facing a formal audit.

But the scale of these notices tells me something important.

Crypto tax enforcement is becoming much more systematic.

Blockchain transactions are difficult to hide forever when exchanges and other financial platforms can provide records that connect activity to taxpayers.

That creates a very different environment for people who treated crypto transactions as something outside the traditional tax system.

Then comes the controversial part.

Citizens for Responsibility and Ethics in Washington has filed an amicus brief alleging that an arrangement involving Donald Trump and his family could provide special protection from certain IRS audits.

That is an allegation from CREW and not something I would treat as established fact.

But if the alleged arrangement is eventually proven to give politically connected taxpayers different treatment from ordinary taxpayers then the issue becomes much bigger than crypto.

It becomes a question about equal enforcement.

And this is where the crypto community should pay attention.

The important question is not whether the IRS is allowed to enforce crypto taxes.

It obviously can.

The real question is whether the same rules are being applied consistently.

For an ordinary crypto taxpayer receiving an IRS letter can mean reviewing transactions and potentially correcting mistakes.

For anyone with complicated holdings or years of trading history the consequences can be much more serious.

At the same time governments around the world are becoming more comfortable treating crypto as part of the normal financial system.

That means the old idea that crypto exists somewhere outside traditional reporting is becoming harder to defend.

I would watch what happens with the allegations around the IRS very closely.

Because strong crypto tax enforcement is one thing.

Strong enforcement that is applied differently depending on who you are would be a completely different problem.