Cryptocurrency has become increasingly popular. So much so that Congress has included tax provisions in the Infrastructure Investments & Jobs Act. The Act is currently making it's way through the legislative process and if approved could require brokers to report cryptocurrency transactions to the Internal Revenue Services.
Foreign trusts with U.S beneficiaries, or owners, are subject to reporting and tax requirements. The Second Circuit Appeals ruling makes it possible for the IRS to stack owner and beneficiary penalties on top of one another.
A Letter 531 from the IRS will inform you that an auditor has reviewed your taxes and determined that you owe additional federal income tax. The letter will inform you of the relevant tax years, the amount you owe and the auditor's report.
A CP90 is a notice for individuals, while a CP297 notice is for businesses, but the information remains the same. These notices serve as a reminder that you have an outstanding unpaid balance due for unpaid taxes. Failure to respond or pay the balance will result in the IRS seizing your assets.
A CP504 Notice is a reminder that the IRS has not received payment for an outstanding balance. The point of the notice is to allow you to resolve your debt before the IRS begins to take any action.
IRS Notice CP2000 is formally called, "Notice of Proposed Adjustments for Underpayment/Overpayment", and you must read it carefully. Receiving this notice means that there was a discrepancy made while calculating the income reported on your tax return.
Learn about what you should do if you have received an IRS Notice CP23.
A CP11 Notice is to alert you that IRS has made adjustments on your tax return, and you now have a balance due. The IRS sends this Notice when they believe you have miscalculated something on your tax return.
Learn about the different options available to you if you have received a Notice of Federal Tax Lien.
Notice CP504 is the IRS alerting you of an unpaid balance, do not ignore this notice. Ignoring this notice will result in the IRS aggressively seizing your property, assets, bank accounts etc. What you should do is pay the amount right away if you can, set up a payment plan, or contact a tax professional to discuss your options.
The Internal Revenue Service is an executive branch agency that is subject to the same limitations as all government agencies. Meaning there are procedues In CIC Services v. Internal Revenue Service, the Supreme Court decision will allow taxpayers to validly challenge the legality of IRS regulations that have to properly gone through the appropriate administrative process.
Trying to hide money from the IS by lying, never ends well, and cryptocurrency is no exception. As a result of being identified for Bitcoin laundering, Russian-Swedish administrator Roman Sterlingov of Bitcoin Fog, was arrested and charged with laundering hundreds of millions of dollars worth of bitcoin. In the end, a lesson to be learned is that one should not try to hide cryptocurrency from the IRS, as blockchain activity is forever.
Receiving a collections notice from the IRS can add stress to an already stressful situation. As it turns out, if the IRS learns that you cannot make your payments against your debt, they may determine your account to be 'currently not collectible'. While this does not eliminate your debt, it simply means collection efforts will be in vain.
While it may seem that IRS rules and regulations are always black and white, that is not usually the case, much is often left open for interpretation. This post will introduce you to a tool that can be used to protect yourself from accuracy-related tax penalties.
Money issues are the third leading cause of divorce, so hiding a tax problem or money issue could mean serious damage for your marriage. But these issues don't have to mean the end of your marriage, here are some Do's and Don'ts to protect your marriage and keep the trust between you and your spouse.
Learn about the appropriate time to hire a tax attorney to assist you with an IRS collection matter.
Learn about the different ways the IRS learns about misreported, unreported, and under-reported income.
Learn about the different tax professionals and when you might need a tax attorney to help solve your tax problems.
If you’re financially unable to pay your taxes, you may qualify for the IRS to assign your account to “currently not collectible” (CNC) status. CNC is the IRS status assigned to debts that it deems the taxpayer unable to pay, deferring you from wage garnishment or levies on your bank accounts.
Can the IRS Collect from a Decedent's Estate? When a loved one dies, their debts don't disappear, and that includes debts and taxes owed to the Internal Revenue Service. The estate administrator must settle the debts, including back taxes owed to the IRS and any taxes owed for the current year t...
FinCEN Announces Virtual Currency (Cryptocurrency) to be Subject to Foreign Bank Account Reporting (FBAR)
Up until now, holding cryptocurrency in accounts outside of the U.S. didn't garner any Internal Revenue Service reporting requirements. But after criticism from the Government Accountability Office (GAO), that time is coming to an end. This report is only the beginning of a growing trend toward m...
According to a recent Treasury Department’s Inspector General for Tax Administration (TIGTA) report, the IRS is losing billions in unreported income and it has the information, reported on Forms 1099-K, that it is ignoring.
Previously abused IRS streamlined procedures have been amended to prevent penalty avoidance by those who purposefully failed to report foreign assets.