The IRS continues to increase their scrutiny of cryptocurrency and virtual currency activity in an effort to eliminate widespread noncompliance. The prioritization of virtual currency above other current tax issues reflects the scale of noncompliance and potential revenue collection opportunities. This is most evident in the annual revisions to 2020 Form 1040, where The Virtual Currency Question has been moved to the first page and is prominently featured—front & center.
On March 17, 2021, the Treasury Department and the IRS announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021 to May 17, 2021. Individual taxpayers, including those who pay self-employment tax, can also postpone 2020 federal income tax payments due on April 15, 2021 to May 17, 2021, without penalties and interest, regardless of the amount owed.
In January 2021, the market value of the world’s cryptocurrencies passed $1 trillion – a record-breaking milestone for digital currencies that only six months prior had a total market value of around $260 billion. Although the masses have yet to adopt digital currencies as a widely used, primary medium of exchange, cryptocurrency is now the world’s fifth most circulated currency by value, suggesting it’s becoming more mainstream.
Most Georgia residents have noticed that the state has become a major destination for the film and entertainment industry over the last several years. Known as the “Hollywood of the South,” Atlanta has become a hub for films and TV series, including The Walking Dead, The Avengers and The Hunger Games.
In a recent article for Industry Today, James Pickett discusses the most common types of penalties issued by the Internal Revenue Service (IRS) each year. Of the 40 million penalties issued in 2017, 26 million involved three common penalties: delinquency (failure-to-file), failure-to-pay and failure-to-deposit employment taxes.
As you may have heard, the Federal Government partially shut down on December 22, 2018 due to a budget impasse between the current administration and Congress. This shutdown includes the Internal Revenue Service (IRS).
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Nationwide, 4.1 million Americans pay more than $10,000 each in property taxes alone, according to ATTOM Data Solutions. The itemized deductions of many taxpayers stand to be severely limited with the new $10,000 cap on state and local taxes enacted as part of tax reform in December of 2017, especially if multiple personal real properties are owned.
Included in the Tax Cuts and Jobs Act, signed into law in December 2017, is a new tax planning technique for deferring gains from sales. By investing in Qualified Opportunity Funds, taxpayers can defer (and potentially partially avoid) gain recognition on the sale of any property.
There is a letter for you. The return address looks ominous – as the first line reads: Internal Revenue Service. You opened it. Your worst fears were confirmed. It is the dreaded notice that your individual income tax return is under audit or, to put it in the language used by the IRS, “your return has been selected for examination.”
In a recent article published in Accounting Today, Bennett Thrasher partner Jeff Call provides insight regarding how the Tax Cuts and Jobs Act has impacted the accounting industry. Call says, “We’re spending 85 percent of our time with clients exploring what they should be doing to take advantage of the new provisions that might be beneficial, or working around them to mitigate any negative aspects of the law.”
You checked your mail. Among the mail was an envelope with a return address that started with three words: Internal Revenue Service. Don’t panic. Receiving mail from the IRS is something millions of people experience every year