Today's Tax Talk with Attorney Steven Leahy: Recent Episodes

Steven Leahy

Attorney Steven Leahy has worked with business owners in the Chicago area and beyond for over two decades. He is the tax resolution answer man for those with: unfiled tax returns, tax planning issues, and more. What do you need to do as a business owner to avoid issues with the IRS? Attorney Leahy is the Founder & Principal of Opem Tax Advocates with the Law Office of Steven A. Leahy, PC. He is the host of the IRS Radio Hour on 560 the Answer, a frequent guest on Home Sweet Home Chicago and other WGN Radio programs, and is the tax answer man on television stations like ABC 7 and FOX Chicago.

Thursday May 18, 2023 - The Supreme Court released the much-anticipated decision in Polselli v. IRS. This case concerned a collection action of the IRS. So, I took a specific interest in this case.

While the case was often touted as a 4th amendment privacy case - that's not how the court saw it. Rather, the court decided the case based on Statutory construction, not Constitutional Law.

Chief Justice Roberts delivered the Opinion of the Court. The court held:

"The question presented is whether the exception to the notice requirement in §7609(c)(2)(D)(i) applies only where a delinquent taxpayer has a legal interest in accounts or records summoned by the IRS under §7602(a). A straightforward reading of the statutory text supplies a ready answer: The notice exception does not contain such a limitation."

In this case, [t]he parties did not argue, and the [court] below did not decide, the contours of [the phrase 'in aid of the collection.'"

Justice Jackson wrote a concurring opinion (joined by Justice Gorsuch) in which she writes "Congress did not give the IRS a blank check, so to speak, to do with as it will in the collection arena."

In her opinion, "the IRS is not necessarily exempt from notice obligations any time a tax-delinquency matter enters the collection phase."

I only wish more Justices joined in her opinion.

While the Court upheld the IRS's position in this instance, it did not define the full extent of the IRS's authority to issue summonses, implying that there could be future clarification on this matter.

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Crypto-Tuesday May 16, 2023 - Today, I summarize an article I found in Mondaq - "Learning from the Ups and Downs of Cryptocurrency" by Jose Saa. From what I can find, Mr. Saa is a Compliance Officer who works within the Bank Secrecy Act (BSA) & Anti-Money Laundering (AML) compliance program..

The article starts by mentioning how cryptocurrencies like Bitcoin and Ethereum have become popular and can change the way we do things, especially in finance and technology. However, Mr. Saa points out that these digital currencies can also be unpredictable, and their values can change quickly.

One important lesson we can learn is the need to research and be careful before investing in cryptocurrencies. It's important to understand how they work, what affects their value, and the risks involved. Although there is a chance to make money, there's also a higher risk of losing it because of how fast the prices can go up and down.

The article also talks about the importance of rules and regulations for cryptocurrencies. Since they are not controlled by banks or governments, there should be some guidelines to protect people from scams and fraud. Finding the right balance between innovation and rules is crucial for the success of cryptocurrencies in the long run.

Another lesson is about keeping our digital money safe. Since cryptocurrencies exist only in computers, they can be targets for hackers and cybercriminals. Using strong passwords, secure storage methods, and other safety measures is important to protect our digital assets.

Additionally, the article mentions the importance of learning and staying informed. Cryptocurrencies are complicated, so it's essential to keep learning about them and staying updated on the latest news and best practices. This knowledge can help us make smarter decisions and be aware of the risks involved.

To sum it up, cryptocurrencies can be exciting, but they also come with risks. It's important to do research, follow rules, keep our digital money safe, and stay informed. By learning from the ups and downs of cryptocurrencies, we can make smarter choices and have a more secure and successful experience with digital money.

My take - investing in cryptocurrencies carries the same burdens and responsibilities as investing in traditional assets.

https://www.mondaq.com/unitedstates/fin-tech/1315228/learning-from-the-ups-and-downs-of-cryptocurrency

https://chartwellcompliance.com/team/juan-saa/

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Monday May 15, 2023 - The tax preparation industry finds itself in a state of skepticism as the Internal Revenue Service (IRS) explores the creation of a government-run tax preparation option. The news has sent shockwaves through the industry, resulting in a significant decline in the stock prices of major players such as TurboTax and H&R Block. Amidst the buzz, industry voices are raising doubts, emphasizing that a direct-to-IRS e-file system would be redundant and not as free as it seems.

According to an article in The Wall Street Journal, the IRS is considering the implementation of a free tax preparation service directly through its platform. The aim is to simplify the tax filing process for millions of Americans while reducing their reliance on paid tax preparation services. However, skepticism arises regarding the feasibility and true cost of this proposed initiative.

"A direct-to-IRS e-file system will be redundant, and it will not be free—not free to build, not free to operate, and not free for taxpayers," said Derrick Plummer, a spokesperson for Intuit, the owner of TurboTax. Plummer's statement reflects the industry's concerns that the IRS's plan may not be as cost-effective or efficient as it appears.

Forbes reported on the significant impact this news has had on the stock prices of Intuit, the parent company of TurboTax, and H&R Block. Investors are expressing apprehension as the potential government-run option could potentially undermine the profitability of these private enterprises, which heavily rely on paid tax preparation services for revenue generation.

The Washington Post highlights the existing IRS Free File program, a partnership between the IRS and private tax preparation companies that currently provides free tax preparation services to eligible individuals. Critics argue that the program is riddled with complexities and loopholes, often leading taxpayers to inadvertently use paid options or pay for additional services.

Opponents of the IRS's proposed government-run tax preparation service argue that it would create redundancy in the market. They claim that the existing system, albeit imperfect, already provides viable options for taxpayers. The inclusion of a free, direct-to-IRS e-file system could be duplicative and unnecessarily costly.

It is important to note that the IRS's consideration of a government-run tax preparation option is still in its preliminary stages, and a final decision has yet to be made. Congressional approval, legislative changes, and significant support will be required for such a proposal to come to fruition.

As the story unfolds, the tax preparation industry, taxpayers, and lawmakers will closely scrutinize the IRS's actions and assess the potential consequences. The debate surrounding the viability and true cost of a government-run tax preparation service highlights the ongoing discussions regarding the accessibility and affordability of tax services for American taxpayers.

While the IRS's initiative aims to simplify the tax filing process, concerns raised by industry insiders suggest that a more nuanced analysis is necessary. As the skepticism surrounding the proposed government-run option grows, stakeholders will continue to evaluate its potential impact on the market and the broader implications for taxpayers.

https://www.wsj.com/articles/irs-weighs-creating-a-government-run-tax-prep-option-21647b65

https://www.washingtonpost.com/business/2023/05/15/irs-free-file/

https://www.forbes.com/sites/katherinehamilton/2023/05/15/irs-poised-to-weigh-in-on-free-tax-prep-service-sending-turbotax-and-hr-block-stocks-sliding/

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Crypto-Tuesday May 2, 2023 - Today we explore the intersection of AI and blockchain and how these two technologies can work together to revolutionize various industries.

We discuss how AI can improve the efficiency and accuracy of smart contracts, while blockchain can ensure transactions are secure and transparent. Additionally, we explore how AI and blockchain can be used in healthcare to improve medical record-keeping, in cybersecurity to create stronger and more resilient systems, and in renewable energy to create more efficient and sustainable energy systems.

Attorney Steven A. Leahy also discusses the potential challenges and ethical concerns that must be considered when using these technologies. Join us as we delve deeper into the exciting possibilities of AI and blockchain and their potential impact on our world.

https://www.rollingstone.com/culture-council/articles/ai-needs-blockchain-1234726883/

https://cointelegraph.com/innovation-circle/ai-meets-blockchain-revolutionizing-smart-contracts-and-cryptocurrency

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Thursday April 20, 2023 - Description: In this episode of Today's Tax Talk, we discuss Senator Joni Ernst's concerns about the IRS enforcement plan under President Joe Biden's Inflation Reduction Act and its potential impact on small businesses. We also explore the future of free filing options from the IRS and the possible development of a direct e-file program.

Join our host, [Your Name], as they break down:

0:00 - Intro

0:30 - IRS Enforcement Plan Controversy

1:45 - Senator Joni Ernst's Concerns

3:00 - Potential Impact on Small Businesses

4:15 - Future of Free Filing Options from the IRS

5:30 - Feasibility Study for Direct E-File Program

6:45 - Sen. Elizabeth Warren's Push for a Direct E-File Program

8:00 - Outro

Stay informed and make the most of your tax season with Today's Tax Talk! Don't forget to hit the subscribe button and the notification bell to get the latest updates on tax news and developments. Let us know your thoughts and questions in the comments below.

IRSTaxNews #TodaysTaxTalk #FreeFilingOptions #TaxSeason #TaxUpdates #SmallBusinessTax #IRSEnforcement #TaxControversy #InflationReductionAct #TaxFiling #TaxAdvice #TaxPreparation #TaxPolicy #TaxReform #DirectEFile #ElizabethWarren #JoniErnst #TaxTips #TaxTime #TaxNews

https://www.cnbc.com/2023/04/20/there-are-lingering-questions-about-irs-free-tax-filing-options.html

https://www.foxnews.com/politics/ernst-accuses-irs-witch-hunt-against-small-businesses-audit-proposal

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Wednesday April 19, 2023 - The Internal Revenue Service (IRS) has come under increased scrutiny in recent weeks, with Senator Ted Cruz calling for its abolishment and an IRS supervisory special agent seeking whistleblower protection to share information about alleged mishandling in the Hunter Biden investigation.

On Tax Day 2023, Senator Cruz criticized the IRS for what he perceives as the weaponization of the tax code and called for the agency to be abolished. He cited recent incidents, such as an IRS agent knocking on journalist Matt Taibbi's door on the day he was scheduled to testify before Congress, as evidence of the agency's continued harassment and political manipulation. Despite these concerns, the Biden administration and Democrats have allocated $80 billion in new funding to the IRS, potentially allowing for the hiring of up to 87,000 new employees.

In a separate development, an IRS supervisory special agent has sought whistleblower protection to share information with Congress about alleged mishandling and political interference in the ongoing criminal investigation into Hunter Biden.

The agent claims to have information that contradicts prior sworn testimony before Congress from a high-ranking political appointee, as well as examples of preferential treatment and political bias in the handling of the case.

Attorney Steven A. Leahy raises questions about the IRS's role, transparency, and fairness in society, and have led to calls for reform to ensure that the tax code is applied fairly to all Americans.

https://www.cnn.com/2023/04/19/politics/irs-whistleblower-hunter-biden/index.html

https://www.cruz.senate.gov/newsroom/press-releases/cruz-on-tax-day-stop-weaponization-of-tax-code-abolish-the-irs

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Tuesday April 18, 2023 - The Internal Revenue Service (IRS) has made headlines for its recent improvements in customer service during the 2023 tax filing season. Thjey tell us this is proof $80 billion funding boost from the Inflation Reduction Act was good government . However, there's more to the story than meets the eye.

According to the U.S. Treasury, the IRS managed to provide live assistance to 87% of taxpayers' phone calls and answered 2.4 million more calls during the 2023 tax filing season.

While this is an obvious improvement, the real reason behind it is not the Inflation Reduction Act. In fact, the IRS hired 5,000 new staff members to answer calls in June 2022 BEFORE the Act was passed, as part of the $1.5 trillion Omnibus spending bill from March 2022.

Looking at the numbers, the new IRS employees managed to answer only 480 calls each. Assuming that these calls were spread over the 13-week tax season, each new employee handled just 37 calls per week. This raises questions about the efficiency of the investment and whether there are better ways to improve the IRS's customer service.

Republicans in the House have already tried to claw back the $80 billion in new IRS spending and may do so again in exchange for raising the $31.4 trillion U.S. debt ceiling.

The IRS's approach to solving its customer service issues by throwing huge amounts of taxpayer money at the problem is not the answer.

Attorney Steven A. Leahy critiques IRS claims on Today's Tax Talk.

https://www.reuters.com/world/us/us-irs-answered-24-million-more-taxpayer-calls-due-new-funding-2023-04-17/

https://federalnewsnetwork.com/budget/2022/03/congress-seeks-updates-on-state-of-the-federal-workforce-in-1-5t-omnibus-spending-deal/

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Friday April 14, 2023 - Meet Attorney Michael Leonard. Attorney Leonard is a highly accomplished trial lawyer with over 30 years of experience in Federal and State criminal matters, civil employment, whistleblower, retaliation, qui tam, commercial, and injury cases.

He has successfully tried numerous cases to verdict in Federal and State courts across the country, achieving rare feats such as six complete not guilty verdicts on all counts in Federal criminal cases.

Attorney Leonard has also achieved impressive results in civil trials in Illinois State courts and Federal courts throughout the country. He has received recognition for his exceptional trial skills and legal expertise from various organizations.

Apart from his trial and litigation practice, Mike advises and represents clients on employment-related matters, and he is an Adjunct Professor of Trial Practice at the Northwestern Pritzker School of Law.

Attorney Steven A. Leahy interviews Attorney Michael Leonard on the Trust Radio Network.

https://www.leonardtriallawyers.com/

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Wednesday April 12, 2023 – Tax Day is April 18th this year. Don’t let the change in the date get you. Yes, April 15th is usually Tax Day – but the rule is – and this rule goes for preforming most any act for tax purposes – if the deadline falls on a Saturday, Sunday or legal holiday it is considered timely if filed no later than the next day that is not a Saturday, Sunday or legal holiday. The term “legal holiday” means any legal holiday in the District of Columbia (and gets more complicated if the new due date falls on an official state holiday). April 15th falls on Saturday this year. And the next Monday April 17th is a legal holiday in DC (Emancipation Day). So, Tuesday April 18th is Tax Day.

Some taxpayers living overseas and disaster victims may have later filing deadlines. Alabama, California and Georgia storm victims now have until May 15 to file various federal individual and business tax returns and make tax payments.

If you won’t be able to file your tax return by April 18th. Consider asking for an extension. An extension will set a new deadline of October 16 (October 15 is a Sunday). To get an extension you simply complete IRS Form 4868. Form 4868 is a single page form with basic information: your name, address and social security number. The form also asks you to estimate how much tax you will owe?

BECAUSE your taxes are still due on April 18th! You don’t get an extension to pay your taxes, just to file the return. VERY IMPORTANT. If you fail to pay by April 18th, you will receive a failure to pay penalty. The Failure to Pay Penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won't exceed 25% of your unpaid taxes.

Here is something most don’t know. Taxpayers can use the Free File program to file an extension electronically – no matter what your income is. EVERY taxpayer can use free file to file an extension.

By filing an extension, you will avoid the failure to file penalty. That penalty is 5% of unpaid taxes for each month that a filing is late, with the penalty capped at 25% of unpaid taxes.

Oh, and most states don’t require you to file separate state extension forms if you don’t owe any additional taxes. When you file your state return, you only need to attach a copy of your federal extension form. If you owe state tax, you typically must file state tax extension to avoid penalties.

Attorney Steven A. Leahy explains filing extensions on Today’s Tax Talk.

https://www.cbsnews.com/news/taxes-2023-tax-extension-deadline-how-to/

https://www.irs.gov/newsroom/irs-kicks-off-2023-tax-filing-season-with-returns-due-april-18

https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

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Crypto-Tuesday April 11, 2023 - Bitcoin, the world's largest cryptocurrency by market capitalization, has broken through the $30,000 threshold for the first time since May 2021, marking a significant milestone in its volatile price history.

The digital currency has been on a rollercoaster ride in recent years, experiencing extreme fluctuations in value, but this latest surge is a positive sign for investors who have held onto their bitcoin through the ups and downs.

The price surge can be attributed to several factors, including increased institutional adoption of bitcoin, growing interest from retail investors, and a renewed focus on the potential use cases of cryptocurrencies. Some experts also point to the current economic climate, which has seen governments around the world pumping trillions of dollars into their economies to counter the effects of the COVID-19 pandemic, as a key driver of the bitcoin price surge.

Speculation is rampent. Will Bitcoin continue the surge. Some speculate to $1 Million. Or, will it crash and burn to zero. Only time will tell.

Attorney Steven A. Leahy looks at the latest Bitcoin news on Today's Tax Talk.

https://coinflip.tech/markets

https://www.reuters.com/technology/bitcoin-pushes-past-30000-investors-eye-end-rate-rises-2023-04-11/

https://www.coindesk.com/business/2023/04/11/bitcoin-breaks-above-30k-for-first-time-since-june-2022/

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Thursday April 6, 2023 - The Internal Revenue Service released its Inflation Reduction Act Strategic Operating Plan today. The plan is more of a "Wish List" or fantasy in my view.

All that was wrong with the IRS will now be made right.

According to the IRS Plan:

The Plan is structured to achieve five objectives, which will be accomplished through a series of initiatives

and projects aligned to each.

Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives

for which they are eligible

Quickly resolve taxpayer issues when they arise
Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to

address the tax gap

Deliver cutting-edge technology, data, and analytics to operate more effectively
Attract, retain, and empower a highly skilled, diverse workforce and develop a culture that is better

equipped to deliver results for taxpayers

The new Commissioner, Danny Werfel, calls it "a vision for the future of Federal tax administration."

The purpose of the plan was to lay out how the IRS was going to spend the $80 Billion from the Inflation Reduction Act. But the plan doesn't include any numbers until page 131. And then only in a high level, general, and abstract way.

Let's not forget the IRS scandals of the 2010's. Not only the targeting of conservative organizations, but the capricious waste of taxpayer money for lavish conferences that included 10s of thousands of dollars for video parodies of Star Trek and Gilligan’s Island.

Attorney Steven A. Leahy critiques the new IRS report on Today's Tax Talk.

https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan

https://thehill.com/homenews/ap/ap-business/irs-pledges-better-customer-service-no-new-agents-with-guns/

https://www.cnn.com/2013/06/06/politics/congress-irs-waste/index.html

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Wednesday April 5, 2023 - Danny Werfel was sworn in as the 50th Commissioner of the Internal Revenue Service on Tuesday April 4, 2023. While Commissioner Werfel was sitting through his Senate confirmation hearing, the Treasury Department missed its self-appointed deadline to present a plan to the American people on just how they planned to spend the nearly $80 Billion in new funding for the IRS provided by the Inflation Reduction Act. Remember the Inflation Reduction Act? The Act that was passed without a single Republican vote.

Danny is not new to the IRS. He was appointed as the Acting Commissioner of the Internal Revenue Service (IRS) on May 22, 2013, by then-President Barack Obama. Right after the IRS was caught targeting conservative groups seeking tax-exempt status and the previous Commissioner, Steven Miller resigned under a cloud. Think Lois Learner.

Commissioner Werfel has promised the IRS workforce they will receive the credit they deserve. The IRS workforce “has risen to the occasion and delivered for taxpayers with limited resources.” The additional $80 Billion will allow the IRS to treat every taxpayer fairly.

Don’t worry, everything you ever thought bad about the IRS, will be just great. This filing season has been better than the previous filing seasons. You know the filing seasons when the IRS employees stayed home and no one was there to process returns or answer the phone.

Attorney Leahy welcomes IRS Commissioner Danny Werfel on Today’s Tax Talk.

https://www.govexec.com/management/2023/04/new-irs-chief-growing-workforce-will-transform-agency-armed-only-their-calculators/384806/

https://www.irs.gov/about-irs/commissioner-danny-werfel

https://federalnewsnetwork.com/reorganization/2023/04/irs-commissioner-danny-werfel-outlines-plan-to-transform-agency-with-historic-investment/

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Crypto-Tuesday April 4, 2023 - In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. (Ripple), the company behind the XRP cryptocurrency, claiming that XRP was an unregistered security. Ripple has denied the allegations and the case has been closely watched by the cryptocurrency industry. The outcome of the case could have far-reaching consequences for the regulation of cryptocurrencies in the United States and around the world.

The SEC's complaint alleges that Ripple conducted an unregistered securities offering when it sold XRP to investors. According to the complaint, XRP was sold as an investment contract, and therefore, XRP is a security under U.S. law. The SEC is seeking to recover all profits obtained by Ripple and its founders as a result of the alleged sale of unregistered securities, as well as civil penalties.

Ripple has vigorously denied the allegations, arguing that XRP is not a security and that the SEC's case is misguided. Ripple contends that XRP is a digital asset that serves as a medium of exchange and a store of value, and therefore, is not subject to the same regulations as securities.

The case has generated a great deal of interest and concern. Many observers believe that the outcome of this case will have far-reaching consequences for the regulation of cryptocurrencies. If the SEC prevails, it will set a precedent for other cryptocurrencies to be classified as securities, which would subject them to stricter regulation and potentially stifle innovation within the industry. If Ripple prevails, the SEC’s position that all cryptocurrencies, other than Bitcoin, are securities will suffer a major setback. Either way, a decision in this case will lead to greater regulatory clarity and certainty.

The case has also raised questions about the SEC's approach to regulating cryptocurrencies. Some within the industry have criticized the SEC for its lack of clarity regarding the regulatory status of cryptocurrencies, arguing that the agency has been slow to provide guidance and has not kept pace with the rapid growth and evolution of the industry. Others have criticized the SEC for its perceived inconsistency in its approach to regulating cryptocurrencies, with some arguing that the agency has been overly aggressive in its enforcement actions against certain projects while ignoring others.

Regardless of the outcome of the case, it is clear that the regulatory landscape for cryptocurrencies is still evolving and uncertain. While some countries have taken a more progressive approach to regulating cryptocurrencies, the United States has been slower to provide clear guidance and establish a regulatory framework for the industry. The Ripple vs. SEC case is just one example of the challenges and uncertainties that the cryptocurrency industry faces as it seeks to mature and gain wider acceptance.

https://finbold.com/ripple-v-sec-court-case-update-as-of-april-3-2023/

https://forkast.news/headlines/sec-charges-beaxy-cryptocurrency-platform-for-violating-securities-laws/

https://bitcoinist.com/ripple-sec-xrp-foia-request-jp-morgan-delayed/

https://www.jdsupra.com/legalnews/cryptocurrency-companies-should-expect-2656781/

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Thursday March 23, 2023 – On this show, I have spoken openly about the new 1099-k information reporting rules for Third party settlement organizations – I think they stink. Recently, the IRS updated their “frequently asked questions about Form 1099-K. We all remember the empty promises made by supporters of this expansion. “This really doesn’t change anything, as these transactions are already taxable.” And “Only payments for goods and services will be effected.”

Now we know, and the IRS has acknowledged, that almost all transactions involving third-party settlement organizations will come under scrutiny and require “Accounting” to explain close to every transaction.

For example, The FAQ page provides guidance on how to report the sale of personal items on Form 1099-K, as well as how to report multiple Forms 1099-K and Forms 1099-K received in error. Taxpayers can report offsetting entries on Schedule 1 for each Form 1099-K they receive separately, or they can combine the Forms 1099-K they've received.

The FAQ also address the question “During the year, I sold my personal guitar for $800 on a social media platform's marketplace and I received Form 1099-K. I purchased the guitar several years ago for $3,000. How do I prove how much I paid if requested by the IRS?” This is what I have been saying from the beginning, and why I thought the explanations given by the IRS, Congress, and their media mouthpieces were, shall we say, disingenuous.

In 2021 the IRS processed 4.7 Billion (with a B) information returns. In 2020 the IRS destroyed 30 million without processing them, because they did not have the resources. With this HUGE increase, look for more delays. Although the delays generally come from paper returns, and the IRS is doing all they can to BAN paper returns.

Attorney Steven A. Leahy looks over the new 1099-K FAQ sheet on Today’s Tax Talk.

https://www.accountingtoday.com/news/irs-issues-new-guidance-on-form-1099-k

https://www.irs.gov/pub/taxpros/fs-2023-06.pdf

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Wednesday March 22, 2023 - The Inflation Reduction Act provided the IRS with a boat load of money. The Act also put aside $15 million for the IRS to conduct a study to find out how to create a program that allows Americans to file their taxes for free.

As we all know. There is nothing more expensive than when the government gives something away. This free tax filing plan was the brain child of Senator Elizabeth Warren. She insisted this provision be included in the Act before she would support it.

What most of the public does not know is - there is already a free file program at the IRS. If you make less than $73,000.00 you can file your 2022 federal tax returns for free.

However, the Free File progrqam is not used by many taxpayers. According to the IRS, More than 100 million people, almost 70% of all taxpayers, qualify for Free File. Since the program launched the Free File program in 2003, according to the IRS, less than 2% of eligible Americans have taken advantage of it.

Attorney Steven A. Leahy talks about the IRS Proposal to prepare tax returns for all Americans.

https://thehill.com/business/3912232-conservative-coalition-takes-aim-at-bidens-irs-run-tax-preparation-service/

https://www.clickondetroit.com/news/national/2022/09/07/irs-gets-15m-to-find-out-if-it-can-create-online-tax-return-system-so-americans-can-file-for-free/

https://www.irs.gov/newsroom/irs-free-file-launch-aims-to-save-taxpayers-hard-earned-dollars

https://www.cnet.com/personal-finance/taxes/irs-free-file-lets-most-americans-file-their-taxes-for-free/

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Crypto-Tuesday March 21, 2023 - The Supreme Court is set to hear arguments in its first case involving cryptocurrencies. The case involves Coinbase, one of the leading crypto exchanges, attempting to compel arbitration for a pair of class action lawsuits against it.

Abraham Bielski is suing Coinbase for $31,000 he lost after providing a scammer access to his account. Suski v. Coinbase concerns a million-dollar sweepstakes event hosted by Coinbase in 2021. In that case, plaintiffs allege they were misled.

The outcome of the case could have major implications for how Crypto companies can resolve disputes. As more class action lawsuits are filed against crypto ledgers, the Supreme Court's decision in this case could have major ramifications.

Ripple vs SEC is also an important case reaching the end of litigation. We have covered this case in this space. The question before the court is whether XRP is a security, as the SEC alleges. If it is, Ripple violated the registration provisions of the Securities Act of 1933 and many other cryptocurrencies are also securities and subject to SEC regulation.

Attorney Steven A. Leahy reviews these cases on Today’s Tax Talk.

https://coinflip.tech/markets

https://www.washingtonexaminer.com/policy/courts/supreme-court-takes-up-first-cryptocurrency-case

https://www.irs.gov/newsroom/irs-issues-guidance-seeks-comments-on-nonfungible-tokens

https://fortune.com/crypto/2023/03/21/ripple-xrp-sec-landmark-court-case-digital-assets/

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Monday March 20, 2023 – The Biden Administration’s proposed budget for 2023 is out. The budget proposes increasing spending from $5.8 Trillion to $6.7 Tillion. It’s clear from the administration’s proposals, they are not serious about engaging in any rational discussions on the budget and the debt ceiling.

In addition, the budget drastically increasing the tax rate for those with incomes higher than $500,000 a year and a minimum tax for those with more than $100 million in wealth. The budget also increases corporate rates from 21% to 28%, as well as increase taxes on stock buybacks, investment income and certain federal agencies.

But the BIGGEST surprise in the budget is the boost to the IRS budget. Remember, the Inflation Reduction Act has already provided the IRS with $80 billion for hiring 87,000 additional employees over the next decade, transforming it into one of the largest government agencies. This new budget would add an additional $43 BILLION. The baseline increases by 15% to $14.1 Billion PLUS another $29.1 billion in “mandatory funding for enforcement and operations.”

I have to repeat Rep. Jason Smith’s, chairman of the House Ways and Means Committee, question. “Is this a joke?

Attorney Steven A. Leahy goes over the Biden Administration’s new budget on Today’s Tax Talk.

https://elamerican.com/biden-wants-more-money-for-the-irs-43-billion-this-time/

https://waysandmeans.house.gov/never-enough-biden-budget-seeks-absurd-43-2-billion-for-irs-despite-receiving-unprecedented-80-billion-windfall-just-last-year/

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Thursday March 16, 2023 - The Inflation Reduction Act was passed in August 2022. The Act provided $80 Billion over 10 years. The vast majority of those funds are directed to enforcement almost 60%. Only $3.2 billion – under 4% - is going to taxpayer services – like answering the phone.

Today the Taxpayer Advocate, Erin Collins, wrote “The IRA allocated the funds in a manner that does not address the needs of U.S. taxpayers, including individuals, families, and businesses,” Collins continued, “The additional funding provided by the IRA, while appreciated and welcomed, is disproportionately allocated for enforcement activities and should be reallocated to achieve a better balance with taxpayer service needs and IT modernization. We need to put taxpayers first.”

This space recently reported the IRS missed the 6 month deadline, imposed by Treasury Secretary Janet Yellen, to provide a plan on how the IRS intends to spend the IRA money. The IRS reported that it “expects to deliver the plan to the Secretary in [the] coming weeks.” That doesn’t mean they aren’t already spending

Attorney Steven A. Leahy looks at the IRS’ progress on this episode of Today’s Tax Talk.

https://www.pgpf.org/blog/2023/03/would-increased-funding-for-the-irs-narrow-the-tax-gap

https://thehill.com/business/3903701-taxpayer-advocate-urges-congress-to-reconsider-80-billion-irs-funding-boost/

https://www.irs.gov/pub/image/21dbmainchart.png

https://www.boropark24.com/news/irs-hires-5-000-customer-service-agents

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Crypto-Tuesday March 14, 2023 – Pi Day – Now that the Government has effectively guaranteed every deposit in every bank in America, Cryptocurrency prices have seen a sharp increase., Coinbase (COIN 5.88%) rose 11.9% on Tuesday and other cryptos such as Cardano, Ethereum and Bitcoin also saw double-digit gains.

The Consumer Price Index report released Tuesday morning showed that inflation cooled down mildly in February. There are expectations that the banking crisis will also have an effect on the Fed’s interest rate targets. This could prove a benefit for both the crypto market and digital currencies themselves.

The recent surge has brought some digital tokens back to levels last seen at various points throughout 2021, while others have seen double-digit gains over the past two days.

I think it is unrealistic to expect the economy to have a quick rebound. Did you notice the banks are failing?? That is never a sign of a strong economy.

There is lots of bullish talk out there. Again, did you notice the banks are failing?

Attorney Steven A. Leahy takes a look at the Crypto market on Today’s Tax Talk.

https://coinflip.tech/markets

https://www.fool.com/investing/2023/03/14/why-bitcoin-ethereum-cardano-coinbase-are-soaring/

https://blocklr.com/cryptocurrency/state-of-cryptocurrency-today/

https://www.cnbc.com/amp/2023/03/14/moodys-cuts-outlook-on-us-banking-system-to-negative-citing-rapidly-deteriorating-operating-environment.html

https://www.msn.com/en-us/money/companies/barney-franks-bank-tanks-government-is-just-the-word-for-the-businesses-we-shut-down-together/ar-AA18CNTz

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Monday March 13, 2023 – The Administration has been clear (??) the Inflation Reduction Act funding to the IRS, almost $80 billion, will not be used to Audit those making less than $400,000 per year. Or will it.

Last week the new Commissioner of the IRS said, I think unequivocally, that the Inflation Reduction Act money will not be used to audit those taxpayers. But, on Friday March 10th, Treasury Secretary Yellen appeared before the House Ways and Means Committee and admitted that more than 90% of any new audits supported by that money will be used to audit small businesses and individuals making less than $400,000 per year.

If you listened closely over these past months, you knew this was the case. There was always some “wiggle room,” as Senator Crapo put it. And trying to get a straight answer was always met with obfuscation.

Now, I think the truth is out. Will it make a difference?

Attorney Steven A. Leahy goes over this new information on Today’s Tax Talk.

https://www.cnn.com/2022/08/10/politics/yellen-new-irs-funding-audits/index.html

https://finance.yahoo.com/video/yellen-appears-admit-90-irs-201955117.html

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Thursday March 9, 2023 – Did you hear about H.R. 25, the Fair Tax Act of 2023. This bill was introduced in House of Representatives in January 2023, right after the Republicans took over.

Supporters claim the bill will simplify the current tax code and reduce federal spending. The act would replace the existing income, payroll, estate and gift taxes with a 23% national sales tax on consumable goods and services. The Family Consumption Allowance would ensure that low-income and middle-class families are not unfairly burdened by the sales tax. Additionally, it would reduce federal spending by over $71 billion in 2023 and eliminate the need for the Internal Revenue Service completely.

Democratic Reps. Wiley Nickel of North Carolina, Eric Sorensen of Illinois and Brittany Pettersen of Colorado called the measure “extremist.” Yesterday Nickel said he “was dismayed to hear about an extremist plan by my colleagues on the other side of the aisle that calls for a 30% national sales tax for working families,” He continued “[a] 30% sales tax would be a disaster for working families and individuals in North Carolina and around the country who are already dealing with high gas prices, exorbitant housing costs and the rising costs of goods and everyday services.”

Attorney Steven A. Leahy said “I find the proposal interesting and worth investigating. Anything is better than the current system. Isn’t it?” Catch his analysis on Today’s Tax Talk.

https://www.law.cornell.edu/constitution/amendmentxvi

https://www.congress.gov/bill/118th-congress/house-bill/25

https://www.forbes.com/sites/peterjreilly/2023/02/07/how-the-fair-tax-act-of-2023-might-work/?sh=2e4220e252ba

https://www.cnbc.com/2023/03/08/taxes-house-democrats-push-back-on-gop-bill-to-abolish-irs-impose-national-sales-tax.html

https://fairtax.org/active-legislation/h-r-25-the-fairtax-act-of-2023

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Wednesday March 8, 2023 - Sen. Joe Manchin (D-WV) has announced that he will vote against, President Biden's choice for head of the Internal Revenue Service (IRS), Daniel Werfel. Manchin is dissatisfied with the way the Inflation Reduction Act (IRA) is being implemented.

Although Manchin was the deciding vote on the IRA, he thinks Werfel would not be given autonomy to perform the job according to the law. “While Daniel Werfel is supremely qualified to serve as the IRS Commissioner, I have zero faith he will be given the autonomy to perform the job in accordance with the law and for that reason, I cannot support his nomination,” he said. “At every turn, this administration has ignored congressional intent when implementing the Inflation Reduction Act,”

Daniel Werfel is still expected to have enough support to be named the new Commissioner of the Internal Revenue Service when the vote reaches the Senate floor, even without Manchin’s vote, and two other absent Democrats, Senators Fetterman and Feinstein. Six Republicans voted to advance Werfel’s nomination on a procedural vote.

Manchin also said he would not vote for President Biden's nominee to sit on the Federal Communications Commission, Gigi Sohn. Manchin cited her "unprecedented" and "bipartisan opposition" due to her past activist statements and alliances with far-left groups. Shortly after his statement, Sohn withdrew herself from consideration, citing the toll that the attacks had taken on her and her family.

So, look for Werfel to be the next Commissioner of the IRS, where he has vowed not to increase audits for households making under $400,000. We shall see.

Attorney Steven A. Leahy reports on the latest IRS news on Today’s Tax Talk.

https://news.yahoo.com/manchin-oppose-bidens-nominee-head-175103115.html

https://thehill.com/business/3889765-manchin-will-vote-against-bidens-pick-to-head-irs/

https://www.freep.com/story/money/personal-finance/susan-tompor/2023/03/08/irs-paper-tax-return-backlog-digital-scanning/69984755007/

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Crypto-Tuesday March 7. 2023 - Cryptocurrency has emerged as a popular form of investment and a means of trade. The US government has been increasingly cracking down on the use of cryptocurrencies, with various agencies taking steps to curb their use.

Today we will explore how US agencies are killing cryptocurrency in the US and the impact it may have on the future of digital currencies.

One of the most significant moves against cryptocurrencies in the US was made by the Internal Revenue Service (IRS) in 2014. The IRS declared that cryptocurrencies should be treated as property for tax purposes, which meant that any gains from the sale of cryptocurrencies would be subject to capital gains tax.

This was a major blow to cryptocurrency investors, who had previously enjoyed tax-free gains from their investments. The decision by the IRS to tax cryptocurrencies has made it more difficult and costly for individuals to trade in digital currencies.

The Securities and Exchange Commission (SEC), under Chairman Gensler, has taken legal action against cryptocurrency companies. Going so far as to say that “everything but Bitcoin” should be considered a security and regulated as such.

The ongoing legal battle between the SEC and Ripple may decide the fate of the entire crypto industry and whether many cryptocurrencies survive. Ripple CEO Brad Garlinghouse has said Crypto companies have "already started moving outside" the US to avoid the heavy hand of the SEC.

More recently, the US Treasury Secretary, Janet Yellen, said it was “critical to put in place a strong regulatory framework.“ While she stopped short of calling for a ban on Cryptocurrencies, there have been very powerful forces stating that banning crypto should be an option.

And today, Federal Reserve Chairman Jerome Powell, restated his heavy warnings to banks that the Federal Reserve are watching their Cryptocurrency moves closely. Saying, “We see in crypto activity lots of things that suggest that regulated financial institutions should be quite cautious in doing things in the crypto space."

Some experts believe that cryptocurrencies will continue to thrive despite the increased scrutiny, while others believe that they will struggle to gain widespread adoption if they are subject to onerous regulations. In any case, the US government's increased scrutiny of cryptocurrencies has had a significant impact on the industry.

The tax treatment of cryptocurrencies, along with proposed regulations from a host of United States Government Regulatory Agencies, including, the IRS, the SEC, the Department of Treasury, the Federal Reserve Board, and others, have made it more difficult and costly for individuals to trade in digital currencies. While some argue that this regulatory crackdown is necessary to prevent illicit activities, others worry that it will stifle innovation and prevent the growth of this possibly freedom enhancing technology.

Attorney Steven A. Leahy looks at the regulatory landscape in this Crypto-Tuesday episode of Today’s Tax Talk.

https://coinflip.tech/markets

https://cointelegraph.com/news/u-s-treasury-janet-yellen-calls-for-strong-regulatory-framework-for-crypto-activities

https://www.coindesk.com/policy/2023/03/07/federal-reserves-powell-we-dont-want-to-strangle-crypto-innovation-but-sector-is-a-mess/

https://www.thestreet.com/crypto/news/ripple-ceo-crypto-will-go-overseas-due-to-sec-regulations

https://www.nasdaq.com/articles/secs-gensler-warns-crypto-investors-but-differentiates-bitcoin

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Monday March 6, 2023 - The Sixteenth Amendment to the Constitution provides Congress with the “power to lay and collect taxes on incomes, from whatever source derived.” Gambling can be a fun and exciting activity. Remember, the Internal Revenue Service (IRS) recognizes winnings from casinos, lotteries, horse racing, sports betting and other gambling activities as income and subject to taxes. Gambling losses may be deductible on your federal tax return, but only up to the amount of winnings.

To claim any deductions for your gambling losses, though, it’s important to keep contemporaneous records of all your gambling activity throughout the year. Whether it’s a casino or sportsbook ticket stub, an online receipt or bank statement with the transaction listed, having documentation of your losses is essential.

Depending on where you live, additional state taxes may also apply to your gambling winnings. Some states require that you pay taxes on all your gaming revenue (not just the amount over a certain threshold), while others might not have any rules in place at all. In Illinois, where I live, the State taxes all winnings, and does not allow deductions for losses.

I have had at least one client with larges winnings – hundreds of thousands of dollars. But larger losses. The State of Illinois taxed the full amount of winnings. In this case, that meant a very large State Tax bill.

Professional gamblers (not an easy designation) may be subject to additional tax requirements. Professional gamblers are considered self-employed and must pay self-employment taxes on their winnings. They may also be required to pay estimated taxes throughout the year.

So, if you don’t keep good records and you get audited, it’s a gamble. Good Luck.

Attorney Steven A. Leahy discusses IRS taxes on Gambling on Today’s Tax Talk.

https://www.law.cornell.edu/constitution/amendmentxvi

https://www.capjournal.com/arena/finance/las-vegas-casinos-gamblers-may-get-a-surprise-irs-jackpot/article_4a468745-4db3-512a-b5d3-04568f0b8c04.html

https://ktla.com/news/nexstar-media-wire/as-march-madness-looms-so-do-sports-betting-taxes/

https://www.irs.gov/taxtopics/tc419

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Thursday March 2, 2023 – As a tax attorney, I am always interested in the unusual. Like the tax implications of catching a record-setting baseball. Or finding a shipwreck with $800 million worth of whiskey.

In 2010, a man named Ross Richardson discovered a the wreak of a passenger ship named the Westmoreland which sank in northern Lake Michigan in 1854. Along with gold valued at about $20 million, the ship contained about 280 barrels of whiskey each contain 200 bottles.

The IRS refers to these items as “Treasure Troves.” A treasure trove is typically defined as a hidden or concealed collection of valuable items that has been discovered by chance. These items are usually old or antique and have been hidden away for a significant amount of time. In some cases, treasure troves may be discovered on a property or in a building that the finder does not own. In other cases, the finder may have been actively searching for treasure using metal detectors or other means.

From a tax perspective, the discovery of a treasure trove can have several different implications. If the finder is not the legal owner of the property where the treasure trove was discovered, they may be required to pay a finder's fee or royalty to the property owner. This fee may be subject to income tax, depending on the specific circumstances of the discovery.

If the finder is the legal owner of the property where the treasure trove was discovered, the tax implications may be different. In general, treasure troves are considered taxable income under the Internal Revenue Code. This means that the finder may be required to pay income tax on the value of the treasure trove.

The specific tax rate will depend on the finder's income bracket and the value of the treasure trove. It is important to note that if the finder intends to sell the treasure trove, they will also be required to pay capital gains tax on any profits made from the sale.

As a tax attorney, my advice to anyone who discovers a treasure trove is to consult with a tax professional as soon as possible. Do NOT follow the old adage “Shoot, Shovel, and Shut Up.”

Attorney Steven A. Leahy explores the depths of the Treasure Trove Tax on Today’s Tax Talk.

https://nowthisnews.com/news/whiskey-recovered-from-a-170-year-old-shipwreck-could-be-worth-a-fortune

https://www.forbes.com/sites/robertwood/2023/03/01/shipwrecked-whiskey-worth-871-million-irs-tax/?sh=4ecae39f2f0c

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Wednesday March 1, 2023 – Back in January we did a story about The Supreme Court refusing to hear a case of excessive fines for inadvertently failing to file a timely bank disclosure form called the FBAR (Report of Foreign Bank and Financial Accounts).

Justice Gorsuch issued a rare dissenting opinion in that case. And now it makes sense. On Tuesday, the United States Supreme Court limited the IRS's ability to impose penalties when taxpayers unintentionally make errors in reporting foreign accounts. The majority opinion was written by Justice Neil M. Gorsuch. He reasoned that the relevant legal duty is to file reports, not individual accounts.

The case concerned Alexandru Bittner, an immigrant and dual citizen who failed to disclose his foreign accounts while living overseas. Lawyers argued that the FBAR should only carry a fine of $50,000, or $10,000 per year. Not the nearly $3 million penalty initially imposed by the IRS, based on the number of accounts.

Justice Amy Coney Barrett disagreed and wrote a dissent arguing that the FBAR is an annual form requiring separate penalties for each account not reported. The ruling is important news for taxpayers who worry about FBAR penalties and adds clarity to the IRS's authority when it comes to FBAR violations. With this ruling, SCOTUS has ensured that taxpayers will not be unfairly penalized by the IRS for unintentional FBAR mistakes. That's a win for everyone. Thank you SCOTUS! God bless America! Now, how can we go back to the Toch case and correct that wrong?

Attorney Steven A. Leahy analyses this recent Supreme Court decision on Today’s Tax Talk.

https://www.washingtontimes.com/news/2023/feb/28/supreme-court-sides-immigrant-challenging-irs-pena/

https://www.supremecourt.gov/opinions/22pdf/21-1195_h3ci.pdf

https://vimeo.com/manage/videos/793168156

https://www.supremecourt.gov/opinions/22pdf/22-177_d0fi.pdf

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Crypto-Tuesday February 28, 2023 - Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), has come out with a statement that all digital assets, besides bitcoin, are securities. But according to various lawyers, his opinion cannot be taken as law without the SEC having to prove its case in court for each individual token, a process which would be incredibly timely and expensive.

Gabriel Shapiro from the Delphi Labs outlined that it would take 12,305 lawsuits for this to happen, making it unfeasible for most token creators. He also noted that registration is not feasible as there is no clear path for it. Overall, this statement has sparked fear in the industry as to what the SEC's plan for crypto.

That said, it is important to note that Gensler's opinion should not be taken as the final legal determination – although powerful. Ultimately, judicial decisions determine what the law means and how it applies.

In conclusion, Gensler's comments are something to be feared, as his opinion could have a dramatic impact on how things are regulated. Remember, Gensler has been asked to recuse himself in crypto enforcement cases because of his clearly bias statements.

Attorney Steven A. Leahy reviews the current SEC vs Crypto standings on Today’s Tax Talk.

https://coinflip.tech/markets

https://cointelegraph.com/news/crypto-lawyers-flame-gensler-over-claims-that-all-crypto-are-securities

https://cryptoslate.com/ripple-asks-sec-chair-to-recuse-self-from-crypto-enforcement-cases/

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Monday February 27, 2023 – Remember that February 17, 2023 deadline Treasury Secretary Janet Yellen set for The Internal Revenue Service (IRS) to create a strategic plan for spending the $80 billion Congress handed them? Yeah, neither does the IRS.

The February deadline came and went and the IRS simply did not meet the deadline. The IRS has excuses: former Commissioner Charles Rettig's term expired, there is a confirmation process for the subsequent nominee Daniel Werfel, and a friend came in from out of town. Treasury has been working with the IRS to develop a plan since last summer.

This delay raises questions about the agency’s credibility and casts doubt on its ability to efficiently spend the money. While the document is still in progress, taxpayers should expect revisions as needs change. But don’t worry. The IRS will complete it in good time- now get back to doing your return. There is a deadline you know!

Attorney Steven A. Leahy looks at the latest IRS arrogance on Today’s Tax Talk.

https://www.washingtonexaminer.com/restoring-america/faith-freedom-self-reliance/negligent-irs-gets-80-billion-but-misses-deadline-for-the-money

https://www.forbes.com/sites/howardgleckman/2023/02/22/the-irs-misses-its-deadline-for-completing-a-plan-to-spend-80-billion-in-new-money/?sh=7691e7031c2f

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Wednesday February 22, 2023 - The Supreme Court is currently hearing an IRS case that could have a major impact on all Americans. The IRS wants to be able to access bank and other business records without notifying anyone. As it stands, the IRS has wide-reaching authority to obtain these records by simply issuing a subpoena in secret.

This case will decide if these actions violate the Fourth Amendment rights of third parties, such as customers and clients.

The Chamber of Commerce wrote in a brief that businesses must choose between two options in response to an IRS summons: “challenging the summons by filing a petition with the Tax Court or complying with the subpoena and disclosing confidential information to the IRS.” This creates a catch-22 situation, as businesses cannot challenge the summons without first complying with it, and could be penalized for not doing so in the interim.

This District Court decision in this case, Polselli v. United States Polselli v. United States, No. 19-10956, 2020 U.S. Dist. LEXIS 260543, at *1 (E.D. Mich. Nov. 16, 2020), and the 6th Circuit Appellate decision affirming the case, dangerously limits the privacy rights of individuals, weakens businesses’ ability to protect their customers’ information, and creates an environment in which businesses are forced to comply with IRS requests or face consequences.

Attorney Steven A. Leahy reviews this case and the implications should the United Supreme Court uphold it on Today’s Tax Talk.

https://www.forbes.com/sites/nicksibilla/2023/02/20/supreme-court-to-decide-if-irs-can-secretly-access-bank-records/?sh=5d31a288486c

https://scholar.google.com/scholar_case?case=1450107970258318149&q=Polselli+v.+United+States+irs&hl=en&as_sdt=400006&as_vis=1

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Crypto-Tuesday February 21, 2023 - Crypto mining facilities are becoming increasingly important in the AI world, as they offer the perfect opportunity to host AI processing while remaining within the blockchain space. Through various projects AI-related activities can be done within a decentralized environment. Furthermore, with the emergence of new ledgerless protocol, blockchain solutions are being developed specifically for AI applications.

Miners are starting to redirect their resources to power these AI networks and their applications. This could prove to be a win-win situation for both miners and developers of AI-based applications, as miners would benefit from an additional source of revenue while developers would have access to powerful distributed computing resources at low costs.

Ultimately, this could lead to the further decentralization of the global economy by enabling more people across the world to participate in the development of AI-based applications. Consequently, this could provide a much broader range of services and products for consumers, creating an even more accessible global market.

The hardware underlying AI will be a critical aspect of decentralizing the global economy. Repurposing of a portion of crypto mining hardware to running AI processing could have a revolutionary impact on the development of AI-based solutions beyond finance.

Crypto mining rigs are based in diverse legal jurisdictions and owned by a variety of different parties. A globally distributed AI network spread across crypto mining rigs would be dramatically more difficult for governments or other parties to centrally control than an AI network centered in Big Tech-owned data centers.

This would make it easier for nascent AI projects to get off the ground and open up new possibilities for both businesses and individuals when it comes to developing, managing, and participating in AI solutions. In this way, these crypto-mined AI networks could become a major driver of decentralization within the global economy.

Attorney Steven A. Leahy discusses these new AI possibilities on Today’s Tax Talk.

https://coinflip.tech/markets

https://cointelegraph.com/news/cryptocurrency-miners-may-lead-the-next-stage-of-ai

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Monday February 20, 2023 – This space has been pointing out that the Internal Revenue Service (IRS) is planning to devote its increased budget to machine learning and data analytics, rather than hiring thousands of new revenue agents.

This shift towards the use of artificial intelligence (AI) in making IRS decisions less transparent, as AI algorithms can be difficult or impossible to understand and their decisions are often cloaked in bureaucratic secrecy.

To protect American taxpayers Congress must insist on IRS algorithmic accountability. This includes publicizing pre-existing data sets used to train the algorithm, making available a detailed explanation of the algorithm’s rules and how it makes decisions, and providing a mechanism for taxpayers to challenge algorithms that appear to be arbitrary or unfair. Further, any AI decision made by the IRS should include some form of human review and oversight.

The use of artificial intelligence in government is unavoidable. However, it is essential that taxpayer rights remain paramount and that any AI decision has sufficient safeguards to protect them from being harmed by rogue algorithms. By increasing transparency and oversight of the IRS’s use of AI, Congress can ensure that taxpayers are not unfairly targeted or harmed by misguided algorithms.

Attorney Steven A. Leahy looks at AI algorithms and IRS decision-making on Today’s Tax Talk.

https://thehill.com/opinion/finance/3864905-rise-of-the-tax-machines-irs-algorithms-are-coming-for-you/

https://www.forbes.com/sites/nicksibilla/2023/02/20/supreme-court-to-decide-if-irs-can-secretly-access-bank-records/?sh=5d31a288486c

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Thursday February 16, 3033 - National Review's Travis Nix asks the question "Who is in charge of tax legislation, the IRS and the Department of the Treasury or Congress. The question is raised because of a recent Tax Court decision of 3M Company vs Commissioner of the IRS.

In the 3M case, the IRS claimed 3M should pay 6% tax royalties on net sales from its Brazilian subsidiary, even though Brazilian Law caps payment at 1%. Thereby double taxing the 5% difference.

The decision allows the IRS to ignore foreign laws which limit inter-company transactions and disregards the keystone of U.S. transfer-pricing regulations that allocate income as if both companies were negotiating with a non-related company, resulting in tax avoidance and evasion.

The decision may have severe economic consequences, such as lost market access for U.S. companies and less economic growth in both countries. Should Congress enact legislation overturning this regulation by mandating the IRS to respect foreign law in transfer-pricing cases?

Attorney Steven A. Leahy reviews this important Tax Court case on Today’s Tax Talk.

https://www.nationalreview.com/2023/02/congress-should-stop-the-irs-from-taxing-phantom-income/

https://aboutbtax.com/6Hi

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Wednesday February 15, 2023 - The confirmation hearing for the nomination of Daniel Werfel as Commissioner of the Internal Revenue Service (IRS) is underway, with a variety of topics to be discussed. The Senate Finance Committee will question Mr. Werfel on matters such as the $80 billion increase in IRS budget for enforcement and collection activities, recent leaks of taxpayer information, and audit rates that will not increase for households earning less than $400,000.

This hearing could determine whether or not he is confirmed as Commissioner of the IRS by President Biden's administration. He will be confirmed. Mr. Werfel is exactly the Washington insider who gets these jobs. Remember, Mr. Werfel was an acting commissioner for a time May 22, 2013 to December 23, 2013.

With so much at stake during this hearing, it remains to be seen what answers has Mr. Werfel prepared and how it will influence the outcome of his nomination process. It is only a matter of time before the Senate confirms Mr. Werfel as IRS Commissioner.

Attorney Steven A. Leahy reviews the confirmation hearing on Today’s Tax Talk.

https://www.nytimes.com/2023/02/15/business/irs-daniel-werfel-hearing.html

https://www.cnn.com/2023/02/15/politics/daniel-werfel-irs-commissioner-confirmation-hearing/index.html

See the testimony at C-Span:

https://www.c-span.org/video/?525971-1/irs-commissioner-nominee-daniel-werfel-testifies-confirmation-hearing

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Crypto-Tuesday February 14, 2023 – The crypto world has been rocked by several major regulatory actions. New York regulators shut down new issuance of the world’s third-largest stablecoin, BUSD, while the SEC fined the parent of another big crypto exchange and forced it to stop offering a popular type of crypto-yield product to U.S. investors.

Banking regulators are also quietly pushing for more oversight into crypto exchanges and other digital currency businesses. These moves could have a profound impact on the future of cryptocurrency.

For those already involved in cryptocurrency, it means greater scrutiny from government agencies and more stringent regulations that must be followed.

Being aware of these changes can help you identify potential areas of growth in the industry that might have otherwise gone unnoticed. For example, if one crypto exchange is no longer allowed to offer certain products or services due to regulatory pressure, another company may be able to step in and fill that void—allowing some to capitalize on an untapped market opportunity.

The recent flurry of regulatory activity shows that cryptocurrency regulation is here to stay. That's why it's essential for business owners to stay up-to-date on these developments in this space so they can make informed decisions when it comes to their own operations and investments in cryptocurrencies.

Attorney Steven A. Leahy summarizes the latest Cryptocurrency news on Today’s Tax Talk.

https://www.cnbc.com/2023/02/14/cryptocurrency-markets-on-edge-as-us-regulatory-crackdown-intensifies.html

https://www.wsj.com/articles/crypto-investors-brace-for-more-crackdowns-from-regulators-c1507134?mod=djemalertNEWS

https://coinflip.tech/markets

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Thursday February 9, 2023 - As tax season begins, the IRS has yet to decide an important question: are state payments or refunds received in 2022 taxable? So, The IRS is asking people to hold off filing their Tax Returns.

The Internal Revenue Service (IRS) tells us they have been working for months with state tax officials about these special payments and refunds that were made available by some states in 2022.

“The IRS is aware of the complexity surrounding these payments and is doing its best to provide additional information that will help taxpayers make an informed decision.” In the meantime – Hurry up and Wait.

The Sixteenth Amendment to the Constitution proclaims, “Congress shall have power to lay and collect taxes on incomes, from whatever source derived.” There are, however, some statutory exceptions. Do these state rebate checks fit into the exceptions? The IRS doesn’t know yet.

The IRS tells taxpayers “the rules surrounding them are complex.” In the meantime “the IRS recommends [taxpayers] wait until additional guidance is available.” “[T}he best course of action is to wait for additional clarification on state payments rather than calling the IRS.”

Attorney Steven A. Leahy looks at the IRS February 3, 2023 Statement on Today’s Tax Talk.

https://www.irs.gov/newsroom/irs-statement-taxability-of-state-payments

https://www.nationalreview.com/corner/the-irs-fails-at-the-basics/

https://www.marketplace.org/2023/02/09/were-last-years-state-payments-taxable-taxpayers-in-24-states-wait-while-the-irs-decides/

https://www.fatherly.com/news/wait-to-file-your-tax-return-irs-warns

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Wednesday February 8, 2023 - The Treasury Department and Internal Revenue Service have announced the proposed Service Industry Tip Compliance Agreement (SITCA) program. A program designed to improve compliance with tip reporting regulations.

The SITCA program would monitor employers' compliance by using their point-of-sale systems and allowing them to adjust tipping practices from year to year. Participating employers would demonstrate compliance by submitting an annual report after the close of the calendar year and receive protection from liability under applicable tax law.

This is part of the Administration’s plan to make sure no one making under $400,000.00 per year pays even $1 more in taxes. This rule focusing on waitresses will make sure the rich pay their fair share.

Attorney Steven A. Leahy reviews the State of The Union and the IRS focus on TIPS on Today's Tax Talk.

https://www.foxnews.com/politics/bidens-irs-plans-crack-down-waiters-tips

https://www.irs.gov/newsroom/irs-introduces-new-service-industry-tip-reporting-program

https://www.denver7.com/news/national/irs-considering-changing-how-tipped-employees-report-tips

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Crypto-Tuesday February 7, 2023 - Tokenizing assets like stocks, bonds and real estate has been an idea bandied about within the financial services industry for years. Blockchain-based platforms such as Ethereum are now leading the way to do just that.

Tokenized blockchains are used to expedite financial transactions and create new opportunities for smart contracts, asset tokenization and decentralized financing.

It’s now up to big banks and financial institutions to show consumers that tokenization is secure, cost-efficient, and compliant with existing regulations. With their deep pockets and government-mandated external oversight, they’re the ones best positioned to do it.

As Ronald Reagan said, “Trust, but verify.” It’s time for big banks to put their money where their mouth is—literally—and prove that tokenization is the way of the future. Through this process, they have an opportunity to gain back the trust of consumers and investors who are skeptical about digital assets in general. With tokenization, America’s biggest banks can lead a revolution that not only changes how we transact with each other, but also rebuilds confidence in our financial system—one block at a time. When done correctly, it can open up new opportunities for all of us.

Attorney Steven A. Leahy examines tokenizing assets and blockchain technology on Today’s Tax Talk.

https://www.forbes.com/sites/ninabambysheva/2023/02/07/how-mastercard-goldman-sachs-and-other-tradfi-titans-are-using-blockchain-to-rewire-global-finance/?sh=621332f8339f

https://decrypt.co/120639/institutional-trader-survey-jp-morgan-crypto-artificial-intelligence

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Monday February 6, 2023 - The IRS collects taxes from every paycheck issued. This is called withholding and it's how most Americans pay their taxes. America is a “Pay as you go” system.

The idea is for employers to withhold an estimated amount of money from each paycheck that reflects what you owe in taxes; when you file your return, the difference between what was withheld and what you actually owe is either refunded to you or requested from you.

The problem is that the amount withheld is based on your income estimates for the year, and with wages increasing, many people are facing a surprise—instead of getting a refund, they owe money come April 18.

The good news is that you can adjust your withholding so it more closely matches what you owe when tax time rolls around. Talk to your payroll department or consult with a tax professional to figure out how to make sure you’re not giving away money in the form of a refund that you would have been better off using in your regular budget. That way, when Tax Day comes around, you’ll be prepared.

Pay attention to the amount withheld from each paycheck and make the necessary adjustments throughout the year to ensure that come tax time, you won't be in for a shock. When it comes to taxes, knowledge is power. Take the time to understand your individual tax situation and make sure you're withholding the right amount from each paycheck—so you can keep more of what's rightfully yours.

After all, there's no better way to celebrate Tax Day than with a little extra money in your pocket. Happy filing

https://www.thestreet.com/dictionary/w/withholding

https://www.mississippivalleypublishing.com/the_hawk_eye/the-irs-tightens-the-screws-on-the-gig-econimy/article_8d822b3a-a3d9-11ed-836a-9368abad0b67.html

https://www.fightbacknow.com

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Thursday February 2, 2023 - As Ronald Reagan once said: “Freedom is never more than one generation away from extinction.” Americans, rely on the government to keep us safe and secure, but we also expect our Constitutional rights to remain intact. The Internal Revenue Service’s (IRS) ability to gather taxpayer financial records without a warrant is unconstitutional and a blatant violation of our Fourth Amendment rights and an affront to the freedoms we hold dear.

Our Constitution recognizes our privacy for good reason—to protect us from government interference in our personal lives. Yet, when it comes to tax investigations, courts essentially give carte blanche authority to the IRS allowing them to seize and search through private financial information without regard for constitutional limits.

Digitization has only made this problem worse; with the IRS able to access digital records with relative ease, it has become increasingly difficult for taxpayers to protect their own financial information from unwarranted invasion. Yet Congress continues to pass legislation that grants the IRS even greater powers when it comes to collecting taxes, including bills requiring reporting on payments as low as $600 and providing chauffeurs for the IRS commissioner.

To deny Americans their right to privacy undermines centuries-long victories safeguarding liberty and diminishes our national character altogether; something every American should be fighting against before it's too late!

Attorney Steven A. Leahy examines the IRS invasion of taxpayer privacy on Today’s Talk Talk.

https://www.nationalreview.com/2023/01/an-irs-that-is-above-the-law-threatens-taxpayers-security/

https://www.nationalreview.com/2023/01/will-the-irs-lose-its-80-billion-appropriation/?utm_source=recirc-desktop&utm_medium=article&utm_campaign=river&utm_content=next-article&utm_term=first

https://www.jpost.com/business-and-innovation/banking-and-finance/article-730308

https://www.fightbacknow.com/

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Wednesday February 1, 2023 - As artificial intelligence (AI) continues to improve, the federal government is making great strides towards keeping up with the ever-increasing speed of change. This includes the Internal Revenue Service (IRS). The IRS is undergoing a computing revolution in which artificial intelligence and other software advancements will be implemented. These advances will drastically change how the IRS operates, allowing them to monitor income transactions more closely than ever before, bringing with it an increased chance of audits or penalties if you fail to follow their regulations.

Business owners need to stay ahead of these changes, familiarizing themselves with current regulations and preparing for any future updates that may come their way. Even if you follow all the rules now, it’s possible that you could get caught off guard by new technology-driven policies that you were unaware of before. It pays to be prepared!

How to Protect Yourself

The best way to protect yourself from being audited or penalized by the IRS is education and due diligence. Familiarize yourself with all aspects of tax law so that when changes occur (and they will!) you know exactly what’s expected of you as a business owner. Make sure that your records are accurate and up-to-date; double check your math and keep records organized so they can easily be accessed if needed. Additionally, consider investing in an audit protection plan or consulting with Opem Tax Advocates, Inc.—this could save time, money, and headaches down the line!

It’s no surprise that technology has drastically changed our lives over the past decade; everything from communication to travel has been transformed by advances in computing power and artificial intelligence capabilities. Now, these same technologies are also transforming how governments operate—including how we manage taxes here in America. As a business owner, understanding how this revolution affects your bottom line is essential for staying on top of your taxes—and avoiding any unpleasant run-ins with Uncle Sam! With knowledge comes power; educate yourself on current tax laws so that when changes come around (and they will!) you’re ready for whatever new regulations may exist. With preparation comes peace of mind!

If you are already fighting a tax problem, consider attending a FREE Tax Workshop hosted by Attorney Steven A. Leahy of Opem Tax Advocates, Inc. Go right now to FightBackNow.com to secure your seat at the FREE Tax Workshop. Seats are limited and fill up fast. There’s no time to waste FightBackNow.com

https://thehill.com/opinion/finance/3832574-coming-soon-irs-on-big-tech-steroids/

https://www.fightbacknow.com/

https://law.stanford.edu/press/irs-disproportionately-audits-black-taxpayers/

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Crypto-Tuesday January 31, 2023 - If you're like most crypto enthusiasts, you're probably not too thrilled about the recent losses in the market. But did you know that there may be a silver lining? In some cases, your crypto losses can actually lead to tax gains! Here's how it works...

When you sell cryptocurrency, the proceeds are considered a capital asset and could be subject to either short-term or long-term capital gains taxes. Short-term capital gains are taxed as ordinary income, meaning that they’re subject to your marginal tax rate. Long-term capital gains, on the other hand, receive preferential tax treatment and are taxed at a lower rate than ordinary income.

Fortunately, when it comes to crypto losses, the Internal Revenue Service (IRS) gives you the ability to deduct them from your other gains in the same tax year. This means that if you have a net loss of cryptocurrency during the year, you can use it to offset any other gains you may have made, reducing the amount of taxes you owe.

The good news is that these losses can also be carried forward to future tax years. This means that if your losses exceed your other gains during a given year, you can still deduct them from your taxable income in future years.

Ultimately, it pays to know the tax implications of your cryptocurrency losses and how they can be used to offset other gains. By doing so, you could be saving yourself some coin when Tax Day rolls around!

Attorney Steven A. Leahy reveals the Crypto-Tax secrets on Today’s Tax Talk!

https://www.cnbc.com/2023/01/30/how-to-handle-cryptocurrency-losses-on-your-2022-tax-return.html

https://www.wpsdlocal6.com/news/concern-grows-for-cryptocurrency-industry-in-new-year/article_99be2f2e-a173-11ed-905d-933bae3bc6bf.html

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Monday January 30, 2023 - The IRS recently announced a delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K. Tax year 2022 will be a "Transition" year.

As one tax expert put it, "the new changes constituted one of the largest 'cash grabs' by the IRS in recent memory and were likely to hit taxpayers 'like a truck.'

On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021. Let’s take a look at how this new law could potentially impact taxpayers.

One area the reporting requirements will hit hard is fantasy sports players. They must report any payments they make over $600 to both the IRS and those receiving payment.

Previously, TPSOs had to report payments only if they were over $20,000 or more in value. A TPSO is defined as any business entity or person who processes credit card payments and/or engages in other activities related to money transfers and various other financial transactions.

Therefore, anyone engaging in fantasy sports leagues where cash payouts are made and processed via a third-party would be subject to these reporting requirements. These players will face increased chances of an audit or taxation. While the IRS has promised not to go after average taxpayers, this new law could target them, nonetheless.

Changes brought about by the American Rescue Plan Act of 2021 have direct implications on ALL taxpayers. The lower reporting threshold means increased 1099s being filed with the IRS and higher chances of audit or taxation.

Attorney Steven A. Leahy will evaluate the impact of the American Rescue Plan Act of 2021’s tax plan on the average American taxpayer on Today’s Tax Talk.

https://www.foxnews.com/media/irs-cash-grab-fantasy-sports-hit-americans-like-truck-tax-experts

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Thursday January 26, 2023 - The United Supreme Court declined certiorari on the case Toth vs. United States. Certiorari is the process by which an appellate court has the discretion to review decisions made by trial courts.

Becase the Supreme Court refused to hear this case the appellate court's decision stands. And that decision stinks! I think a clear violation of the Eighth Amendment to the Constituion. The Eight Amendment simply says "Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted."

Justice Gorsuch dissented from the denial of certiorari. Monica Toth, an American citizen who failed to report a foreign bank account as required by law. The Internal Revenue Service assessed a civil penalty against Ms. Toth for her failure to report, which she argued violated her rights under the Excessive Fines Clause of the Eighth Amendment.

Justice Gorsuch noted that protection against excessive punitive economic sanctions is “fundamental” and “deeply rooted in this Nation’s history and tradition". He further argued that it would be wrong for governments to evade constitutional scrutiny by labeling fines as "civil" rather than "criminal".

In addition, he pointed out other reasons why taking up this case was worth consideration such as incentivizing governments to impose exorbitant civil penalties and clashing with original understanding of Eighth Amendment.

Some Judges write for other Judges to help them understand the legal basis for a certain ruling, or even provide their own interpretation of an existing law. This can help inform future decisions on similar cases, since the opinion can serve as precedent.

Some judges write with lawyers in mind, crafting legal opinions that are complex and highly technical, so that attorneys can use them as powerful tools when advocating for their clients.

Some judges write for the public, with the intention of making legal opinions easier to understand and more accessible to a wider audience.

Justice Gorsuch writes for the public.

Attorney Steven A. Leahy reviews Justice Gorsuch's opinion on Today's Tax Talk.

https://reason.com/2022/08/30/this-grandmother-didnt-submit-the-proper-banking-form-now-the-irs-wants-2-1-million-from-her/

https://reason.com/2023/01/23/supreme-court-declines-case-challenging-excessive-irs-penalties/

https://www.reuters.com/legal/government/us-supreme-courts-gorsuch-dissent-calls-217-mln-tax-penalty-excessive-2023-01-23/

https://news.bloomberglaw.com/us-law-week/supreme-court-punt-in-tax-fine-case-leaves-uncertainty-in-wake

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Wednesday January 25, 2023 - American taxpayers may have reason to rejoice as Republican lawmakers introduced the Stop the Nosy Obsession with Online Payments (SNOOP) Act on Tuesday. The bill, if passed, would put an end to the Biden Administration’s new requirement passed in the American Rescue Plan of 2021, for Americans to report online transactions over $600.

As reported here, The IRS recently announced a "delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K." California Rep. Michelle Steel and Tennessee Sen. Bill Hagerty are leading this effort in their respective chambers of Congress, looking to nix this intrusive policy forever, which is a weaponization of government against hardworking citizens.

Americans have long been wary of the government's ability to intrude on their personal lives and financial information. But this new policy would have required all third-party platforms to report all online transactions over $600 the Internal Revenue Service (IRS). This policy would leave no room for privacy between a citizen and the government.

The SNOOP Act would revert back to the old rules, where third parties reported amounts of $20,000.00 or more AND 200 transactions.

Attorney Steven A. Leahy reports on these developments on Today’s Tax Talk.

https://www.foxnews.com/politics/snoop-scoop-new-gop-bill-would-put-stop-irss-600-online-reporting-requirement

https://www.yahoo.com/entertainment/irs-aims-cut-back-1099-211701325.html

https://www.msn.com/en-us/news/politics/bill-to-abolish-the-irs-likely-dead-in-the-house-gop-lawmaker-predicts/ar-AA16JnrZ

https://chicago.suntimes.com/columnists/2023/1/25/23571245/irs-policy-penalties-senior-citizen-monica-toth-supreme-court-jacob-sullum-column

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Crypto-Tuesday January 24, 2023 - Money serves three purposes: medium of exchange, preserving labor value over time and measuring goods and services across an economy.

The promise of Crypto was to provide all three purposes. However, Cryptocurrency still needs acceptance from people in order to work as a medium of exchange like traditional currencies do. That's why the El Salvador move looked so encouraging. Using Crypto as a medium of exchange, rather than a store of value. That experiment hasn’t worked…yet.

Governments around the world have ratcheted up regulatory controls on Cryptocurrency. Our own Department of Justice proposed three regulatory and legislative priorities for combating cryptocurrency crime, including amending the anti-tip-off law for financial institutions to include digital assets, strengthening penalties and broadening the application of criminal laws governing operation of an unlicensed money transmitting business, and increasing limitations period to 10 years for all crimes that involve transfer of digital assets.

The White House also committed additional priorities such as aggressive investigations by SEC Chair Gary Gensler, as the SEC battles with the Commodities Futures Trading Commission to be the regulatory king in the Crypto space.

Attorney Steven A. Leahy looks at the past, present and future of money on Today’s Tax Talk.

https://www.deseret.com/2023/1/22/23558962/cryptocurrency-blockchain-us-dollar

https://news.bloomberglaw.com/us-law-week/crypto-actors-face-increased-enforcement-spurred-by-doj-network

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Monday January 23, 2023 - U.S. Treasury Secretary Janet Yellen told Reuters "I’m excited about legislation that’s passed and I want to make sure that it makes the difference it should make, and that includes the IRS," she said. "That agency needs to be completely redone, and it’s a big task."

She also shot down the idea of minting a $1 Trillion Dollar coin to avoid negotiating the debt limit with Congress as a "gimmick."

Yellen is looking to find ways to spend the $80 Billion Dollar boondoggle, and Congress is trying to find ways to eliminate it. Let’s hope Congress finally does something right.

Attorney Steven A. Leahy looks at both sides on Today’s Tax Talk.

https://www.dailymail.co.uk/news/article-11666579/Treasury-Sec-Yellen-says-IRS-needs-completely-redone-rules-1T-coin-debt-limit.html

https://www.yahoo.com/news/janet-yellen-says-not-given-165317435.html

https://nypost.com/2023/01/23/u-s-treasury-secretary-janet-yellen-says-irs-needs-to-be-completely-redone/

https://www.reuters.com/world/us/us-treasurys-yellen-says-irs-needs-be-completely-redone-2023-01-22/

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Thursday January 19, 2023 - The 2023 tax season officially begins on January 23, 2023. This is the date when the Internal Revenue Service (IRS) begins accepting and processing individual tax returns for the 2022 tax year. Taxpayers who file early in the tax season are more likely to receive their refund sooner than those who file later.

One important thing to note for the 2023 tax season is the availability of the Free File program. The Free File program is a partnership between the IRS and several tax software companies, which allows taxpayers with an adjusted gross income (AGI) of $73,000 or less to file their federal tax return for free. http://www.tinyurl.com/t3freefile

This program is designed to help low- and moderate-income taxpayers prepare and file their taxes electronically, which can make the process faster and more accurate. Taxpayers can use the Free File program to file their federal tax return, schedule their payments, and check the status of their refund.

Taxpayers who are eligible for the Free File program can access it through the IRS website (see link below). They will be able to choose from a list of participating tax software companies, which offer various features and options depending on their needs.

It is important to note that the Free File program is only available for federal tax returns and does not cover state tax returns. Taxpayers who need to file a state tax return will need to use a separate service or software.

Attorney Steven A. Leahy reports on the Tax return 2023 tax season and the IRS Free File program.

https://en.as.com/latest_news/irs-tax-season-2023-when-to-expect-your-tax-refund-n/

https://www.irs.gov/newsroom/irs-free-file-launch-aims-to-save-taxpayers-hard-earned-dollars

https://www.tinyurl.com/t3freefile

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Monday January 16, 2023 - The Biden Administration is pushing for 87,000 new Internal Revenue Service (IRS) agents in order to increase the amount of audits against families and small businesses.

This proposal would cost taxpayers an additional $80 billion on top of their already existing $14 billion annual IRS budget. Thankfully, Republicans in Congress are fighting back with the passage of the “Family and Small Business Taxpayer Protection” Act. This act will rescind all new IRS funding and protect middle-class families and small businesses from IRS audit harassment.

Unfortunately, this Act has Zero chance of passing. The Democrats still have control of the Senate, and President Biden would never sign such a bill.

In another story, the IRS has set a date of January 23, 2023 for tax season to open.

Attorney Steven A. Leahy looks at the effort to curb the power of the IRS.

https://thehill.com/opinion/3811279-irs-funding-dont-feed-the-mouth-that-bites-you/

https://www.nytimes.com/2023/01/11/business/irs-tax-returns-backlog.html

https://www.denver7.com/news/national/irs-sets-date-for-tax-season-but-taxpayers-can-begin-filing

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Thursday January 12, 2023 - The Taxpayer Advocate Service (TAS) is an independent organization within the Internal Revenue Service (IRS) that helps taxpayers resolve problems with the agency. Each year, by law, the TAS releases a report to Congress highlighting the most serious problems encountered by taxpayers. The report, known as the National Taxpayer Advocate's (NTA) report, identifies systemic issues that impede taxpayers' ability to exercise their rights and recommends solutions to those problems.

The 2022 National Taxpayer Advocate report identified ranked the ten most serious problems encountered by taxpayers:

1.Processing Delays

2.Complexity of the Tax Code

3.IRS Hiring & Training

4.Telephone & In-Person Service

5.Online Access for Taxpayers and Tax Professionals.

6.E-File & Free File

7.IRS Transparency

8.Return Preparer Oversight

9.Appeals

10.Overseas Taxpayers

The biggest issue identified in the report is Processing Delays. That finding isn’t news to any taxpayer. The processing delay has been reported since last year.

The recently replaced IRS Commissioner, Charles Rettig told a Congressional hearing last March the backlog would be cleared by the end of 2022.

In the just released report the National Taxpayer Advocate, Erin Collins, wrote to Congress, saying ““We have begun to see the light at the end of the tunnel, I am just not sure how much further we have to travel before we see sunlight.”

So, the IRS did not clear the backlog by the end of 2022, despite the additional funding to do so. The additional funding BEFORE the additional $80 billon.

Attorney Steven A. Leahy looks at the Number one problem according to this report – Processing Delays – on Today’s Tax Talk.

https://www.taxpayeradvocate.irs.gov/reports/2022-annual-report-to-congress/most-serious-problems/

https://www.washingtonpost.com/business/2023/01/11/irs-backlog-delays-refunds/

https://www.thinkadvisor.com/2023/01/11/taxpayer-service-expected-to-improve-in-2023-irs-says/

https://www.journalofaccountancy.com/news/2022/mar/commissioner-congress-irs-will-clear-backlog-years-end.html

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Wednesday January 11, 2023 - With the new House Majority, Republicans are pledging to use their power to identify agencies at which to slash budgets. Their vote on Monday was the first step in this process, passing a repeal of $71 billion in IRS funding.

The Inflation Reduction Act was passed by Democrats in the last Congress - without a single Republican vote. It was designed to provide funding over 10 years to boost enforcement at the IRS after massive hiring surges.

It's important that business owners stay informed about any changes related to taxes and filing procedures so they can comply with all requirements quickly and accurately. Keeping up-to-date on any news related to taxes is critical - especially as tax season approaches - so businesses can remain compliant while also taking advantage of any benefits they may be entitled to receive under current laws. Additionally, making sure you have accurate records and staying organized throughout the year can help reduce any potential issues down the line if you do get audited or need help with a specific issue related to your taxes or filing status.

Attorney Steven A. Leahy explores the details of this act and how it will affect you.

https://news.yahoo.com/heres-why-the-house-gop-made-defunding-the-irs-its-first-priority-123223299.html

https://www.govexec.com/workforce/2023/01/house-republicans-say-clawing-back-irs-funding-just-beginning-agency-spending-reductions/381647/

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Crypto-Tuesday January 10, 2023 - Account abstraction (AA) is a powerful concept that can help business owners unlock the full potential of Ethereum transactions. AA combines user accounts and smart contracts into just one account type, giving users more flexibility in validating a transaction on the blockchain.

Account abstraction (AA) is a proposal that attempts to combine user accounts and smart contracts into just one Ethereum account type by making user accounts function like smart contracts. This means that transactions on the Ethereum blockchain will have more flexibility when it comes to being validated. For instance, instead of having rigid requirements such as a valid ECDSA signature or sufficient balance to cover the cost of computation, users will be able to design their own unique criteria for validating their transactions.

One of the biggest benefits of using account abstraction (AA) is that it enables multi-owner accounts, which can be used to facilitate auto payments between multiple parties without any manual intervention. This makes AA perfect for businesses looking to streamline their payment processes. Additionally, since AA allows you to customize your own criteria for validating a transaction, you can ensure that only legitimate transactions are processed on your blockchain network. This helps minimize fraud and other malicious activity on your blockchain network.

Another benefit of using account abstraction is that it allows for much faster transaction processing times than traditional Ethereum transactions. Since users are not required to wait for confirmations from miners before processing a transaction, you can dramatically reduce transaction processing times with AA and make sure your customers get their products or services delivered promptly.

Account abstraction (AA) offers numerous benefits for business owners looking to transition onto the blockchain platform and take advantage of its features in order to streamline their operations and reduce costs associated with managing payments between multiple parties. With AA, businesses can enjoy enhanced security measures due to customizable criteria for validating transactions as well as faster processing speeds due to reduced waiting times for confirmations from miners. Ultimately, if you want your business operations to run smoothly and efficiently while enjoying maximum security and trustworthiness from customers, then account abstraction may be exactly what you need!

Attorney Steven A. Leahy takes an in-depth look at what Account Abstraction is and how it can benefit your business.on Today's Tax Talk.

https://www.forbes.com/sites/michaeldelcastillo/2022/12/19/visa-proposal-would-bring-ethereum-users-one-step-closer-to-being-their-own-bank/?sh=7b43948521b5

https://usa.visa.com/solutions/crypto/auto-payments-for-self-custodial-wallets.html

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Monday January 9, 2023 - The recently seated Republican majority recently proposed a bill that would cut the IRS budget by $70 billion.

This proposal has been met with mixed reactions from both sides of the political aisle, as it would drastically reduce the proposed growth of IRS services and enforcement capabilities.

Attorney Steven A. Leahy explores what this bill means for taxpayers and how it might affect IRS operations in the future.

https://theprint.in/world/our-very-first-bill-will-repeal-funding-for-87000-new-irs-agents-speaker-us-house-of-representatives-kevin-mccarthy/1304254/

https://www.foxnews.com/politics/irs-chopping-block-first-day-legislative-work-speaker-mccarthy

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Thursday December 29, 2022 - There is much confusion about the 1099-K, no thanks to the IRS changing the reporting threshold rules – after the reporting threshold rules were changed by the American Rescue Plan in 2021. You may ask “what is 1099-K form used for?”

In short, 1099-Ks are sent to merchants, financial institutions, and other businesses that accept payments from customers through credit cards, debit cards, PayPal or other online payment systems to report gross transactions to the Internal Revenue Service (IRS).

Information Returns

1099-K is a version of what the IRS calls an information return. The IRS uses information returns to help ensure that individuals and businesses report all their income and pay the appropriate amount of taxes on that income. By requiring organizations to report certain types of payments made to individuals or businesses, the IRS can more easily track and verify the income that is being reported on tax returns. Reporting helps to improve voluntary tax compliance

Reporting Thresholds

Since 2011 the reporting threshold was:

•Gross payments that exceed $20,000, AND

•More than 200 such transactions

The American Rescue Plan of 2021 changed the reporting threshold for third-party settlement organizations, including payment apps and online third-party settlement organizations. The new threshold required these organizations to report transactions in excess of $600 per year, without regard to the number of transactions.

On December 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations who issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions. Back to the original threshold.

Conclusion:

I hope this helps clear up some of the confusion. Remember, the Sixteenth Amendment to the Constitution makes all income, “from whatever source derived” taxable. So, even if you do not receive a 1099 – all income must be reported on your tax return.

Attorney Steven A. Leahy reveals What a 1099-K is used for on Today’s Tax Talk.

https://www.irs.gov/businesses/understanding-your-form-1099-k

https://www.irs.gov/businesses/small-businesses-self-employed/a-guide-to-information-returns

https://www.marca.com/en/lifestyle/us-news/personal-finance/2022/12/29/63adb4cd22601d9b2c8b45f5.html

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Wednesday December 28, 2022 - The Internal Revenue Service (IRS) recently announced that it is delaying the implementation of 1099-K reporting requirements until January 2023. This delay affects businesses and individuals who receive payments from financial organizations and other third parties through electronic payment channels such as PayPal, Venmo, Square, Apple Pay or Google Wallet.

The delay provides financial organizations and their customers with a valuable reprieve from the compliance and administrative costs associated with the new requirements. More importantly, the IRS doesn’t have the capabilities to process the huge increase in information returns. In 2020 the IRS processed 3.2 billion information returns – 30 million of which went unprocessed. In 2021 the IRS processed 4.7 billion information returns. It isn’t clear if the IRS left any unprocessed.

For both businesses and individuals receiving payments through these online platforms, this announcement offers interim relief from an onerous process for filing 1099-K forms for income earned through digital payment methods to report to the IRS. The original deadline was in 2021, but now has been extended for two years. There have been Congress members, on both sides of the aisle, proposing legislation to change the parameters. The current law triggers a 1099-K after just $600 of activity. With that low trigger, it is clear the number of returns were set to explode.

The extension also provides additional time for employers to develop additional safeguards or systems that protect taxpayers from being charged taxes on amounts that should be exempt from taxation, as commercial activity tax laws vary between different states. It is important to bear in mind that while this delay may provide comfort to some businesses, they are still required to comply with all applicable federal tax laws when it comes to reporting any income received through digital payment channels starting January 2023.

Attorney Steven A. Leahy looks at this new development on Today’s Tax Talk

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k

https://www.jdsupra.com/legalnews/irs-delays-reporting-requirements-on-3732485/

https://nypost.com/2022/12/26/cheer-irss-delay-of-congress-ugly-rule-socking-the-gig-economy-but-it-should-die-entirely/

https://www.cpapracticeadvisor.com/2022/05/13/report-irs-destroyed-30-million-paper-tax-documents/49460/

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CryptoTuesday December 27, 2022 - With a tnode o the New Year, this CryptoTuesday Today's Tax Talk takes a look at the "Top 5 Industries Blockchain Will Change FOREVER!" Here is our list:

The banking industry is one of the most obvious beneficiaries of blockchain technology
International Payments - Blockchain will can help streamline the process.
The insurance industry can use blockchain to create a more secure and efficient system
Healthcare - Blockchain can help reduce fraudulent activities.
Real Eestate - Blockchain will secure property title registrations.

This is my list. Attorney Steven A. Leahy reviews some other lists on Today's Tax Talk.

https://www.startupguys.net/industries-where-blockchain-tech-have-impact/

https://blog.pragtech.co.in/top-5-industries-to-benefit-most-from-blockchain-technology/

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Wednesday December 21, 2022 – There has been much talk in recent weeks about Republicans’ efforts to cut funding to the Internal Revenue Service (IRS). While Republicans are hailing the 2 percent reduction in IRS funding, taxpayers must understand how insignificant this cut is. Remember the Inflation Reduction Act added $80 Billion to the IRS budget over the next decade. This money will be used by the IRS to hire 87,000 new agents and expand its services. The aim of this legislation is to increase enforcement against taxpayers.

Republicans opposed the Inflation Reduction Act because they felt that it would give too much power to an already powerful agency. They argued that giving additional resources to the IRS could lead to increased government intrusion into citizens’ lives and that any cuts should be offset by reducing other spending in order to help control government spending overall.

Giving additional resources to the IRS will mean increased enforcement of tax rules and regulations. This translates into more audits and investigations as well as higher penalties for those who fail to comply with rules or pay their taxes on time.

Attorney Steven A. Leahy keeps you informed about changes in taxation laws and policies so that you can remain compliant with all regulations and Fight Back Now! Against future IRS increases. The Republican “cut” doesn’t affect the IRA funding whatsoever. All that on Today’s Tax Talk

https://thehill.com/homenews/3782281-republicans-hail-2-percent-cut-to-irs-appropriation-in-omnibus/

https://www.cnbc.com/2022/12/20/hagerty-manchin-propose-10000-threshold-for-venmo-paypal-tax-reporting-change-up-from-600.html

https://www.foxnews.com/politics/sen-rand-paul-mocks-massive-trillion-omnibus-bill-hazardous-debt

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Tuesday December 20, 2022 - Should our government make rules for issues and areas they don’t understand? The answer to that question isn’t really an issue. Because, if government should or shouldn’t doesn’t matter. Government does.

The latest example is cryptocurrency and blockchain. Government has come late to the game – don’t really understand the issues but want to hurry through regulations to control it. With the recent collapse if FTX, Sen. Sherrod Brown (D-Ohio) suggested banning the cryptocurrency market and then acknowledging banning crypto will not work.

Attorney Steven A. Leahy looks at the latest moves to regulate crypto on Today’s Tax Talk.

https://thehill.com/homenews/sunday-talk-shows/3779731-senate-banking-chairman-says-maybe-to-cryptocurrency-ban/

https://thehill.com/opinion/congress-blog/3780084-dont-let-ftxs-fall-discredit-blockchain/

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Wednesday December 14, 2022 – Remember last year when Pro Publica revealed the confidential tax information of some of the wealthiest Americans? Remember how the IRS pledged to “get to the bottom” of the crime and expose those who violated the law. Well, that never happened. Those criminals are still at large, and probably still working for the IRS.

One of those Wealthy Americans is Ken Griffin, CEO of Citadel. Mr. Griffin has given up waiting for action from the IRS, he filed a federal lawsuit naming the Internal Revenue Service and the United States Treasury as defendants.

The Complaint alleges the IRS violated its “legal obligations to safeguard and protect his information from unauthorized disclosure,” and willfully and intentionally failing to “establish appropriate administrative, technical or physical safeguards”

Further, the complaint states “IRS personnel exploited the IRS’s willful failure to establish adequate administrative, technical, and physical safeguards for the IRS’s data and records systems to misappropriate confidential tax return information for the highest earning U.S. taxpayers, including Mr. Griffin, and then unlawfully disclosed those materials to ProPublica for publication.”

Attorney Steven A. Leahy reviews this story on Today’s Tax Talk.

https://www.chicagotribune.com/news/breaking/ct-ken-griffin-irs-tax-lawsuit-20221214-grpig6lzonegtgxuzi6flw7cbe-story.html

https://www.usatoday.com/story/money/2022/12/14/ken-griffin-sues-irs-leak-propublica/10894958002/

https://www.cnbc.com/2022/12/13/billionaire-ken-griffin-sues-irs-over-tax-disclosure.html

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CryptoTuesday December 13, 2022 - As we approach the end of 2022 Crypto News seems to be all negative. Many are asking, "Is this the end of Crypto?"

What is the answer? In my opinion, there are two certainties. One - Crypto is here to stay. Two - There will be much more regulation in this sector.

Holders of crypto have taken huge losses: More than $2 trillion in market cap have disappeared. While Bitcoin is down 75% off its peak, it is still up 4x from December 2018. Ethereum, the second most popular coin, is up more than 1000% over that same time frame.

Attorney Steven A. Leahy talks Crypto on Today’s Tax Talk.

https://www.kiplinger.com/investing/cryptocurrency/whats-next-for-cryptocurrency-after-the-collapse-of-ftx

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Monday December 12, 2022 – The new tax season is closing in on us. Many taxpayers want to file their tax returns as early as possible, to get their refund quickly. The IRS is set to begin accepting and processing 2022 tax returns Monday January 24, 2023.

Usually, the IRS encourages taxpayers to file early. But wait! This year, because of the new 1099 K rules, the IRS advises taxpayers to slow down. Wait for key documents. Remember, the third-party payment networks, like Venmo and PayPal? Remember, when the IRS told us it wasn’t a big deal? Now, it is a Big Deal!!

Before the 2022 tax year, only taxpayers with 200 or more transactions AND worth more than $20,000 were received a 1099 k. Now, under the new rules, the threshold is transactions worth more than $600, no matter how many transactions. A BIG change. Many more taxpayers are going to have to deal with these tax forms. Like it or not.

Attorney Steven A. Leahy will discuss the IRS warning on Today’s Tax Talk.

https://www.cnbc.com/2022/12/12/irs-when-to-submit-your-tax-return-in-2023-to-avoid-missing-forms.html

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Thursday December 8, 2022 – FTX is in bankruptcy. If a taxpayer has losses from their investment in FTX these “customers will face a nightmare when they file their income tax returns next year.”

Much may depend on whether Sam Bankman-Fried is charged with a crime. Because a criminal proceeding might trigger special IRS rules for Ponzi scheme investment losses, allowing for immediate deductions. Otherwise, these taxpayers might have to wait for IRS guidance or court judgments. That may take years.

Attorney Steven A. Leahy unleashes on the FTX scandal and the effect on taxpayers. on Today’s Tax Talk.

https://www.foxbusiness.com/money/ftx-customers-irs-ponzi-rules-loom-large

https://www.irs.gov/pub/irs-drop/rr-09-09.pdf

https://www.irs.gov/pub/irs-drop/rp-09-20.pdf

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Wednesday December 7, 2022 – I have been shouting from the roof tops about the $600 limit for 1099K reporting I have even predicted that, once taxpayers are faced with this monstrosity, Congress would take action to reverse it.

Well, today a Democratic Congressman, from Illinois no less, Raja Krishnamoorthi, sponsored legislation to “radically increase the threshold” from $600.00.

The IRS has been on a propaganda campaign to alert taxpayers that this new rule is coming…and coming soon.

Remember, the Affordable Care Act originally included a provision that required businesses to report every purchase from a single vendor over $600. That provision was quickly repealed – Before it went into effect. At the time, IRS Taxpayer Advocate Nina Olson, reported that costs to businesses would drastically outweigh the expected revenue ($19 billion over 10 years).

Attorney Steven A. Leahy does not take too many bows for the accurate prediction in Today’s Tax Talk.

https://rollcall.com/2022/03/15/democrats-push-to-loosen-gig-worker-tax-reporting-threshold/

https://www.foxnews.com/video/6316677404112

https://www.msn.com/en-us/news/opinion/team-biden-is-using-the-irs-to-attack-the-gig-economy/ar-AA14Wqna

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Crypto-Tuesday, December 6, 2022 - With the falling price of Cryptocurrencies there is talk that some new rules, due to take effect in 2023, may be postponed. Specifically, the new rule requiring crypto exchanges and brokerages to report customer information directly with the IRS.

Another result of falling Crypto prices is the ability of investors for tax loss harvesting. “[T]ax-loss harvesting is a long-established planning strategy when it comes to stocks, bonds and other conventional investments. It typically comes into focus at the end of a year.”

Attorney Steven A. Leahy addresses these issues on Today’s Tax Talk.

https://www.axios.com/2022/12/05/the-irs-is-coming-for-crypto-but-its-complicated

https://www.marketwatch.com/story/cryptocurrency-investor-losses-are-being-turned-into-irs-gains-heres-how-theyre-doing-it-11670345179

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Thursday December 1, 2022 - Inflation has an impact most don't notice. Inflation exasperates IRS problems. How? The IRS charges interest on all past due balances – and the interest is compounded DAILY. Yes, daily. That means, today taxpayers pay interest on interest from yesterday.

Last year at this time the IRS interest rate was 3%. The IRS just announced that the interest rate for the next quarter is 7%. More than double from last year.

Attorney Steven A. Leahy will explain how the increase in interest rates will effect real people.

https://www.thinkadvisor.com/2022/11/29/irs-to-hike-interest-rates-for-q1/

https://www.irs.gov/payments/quarterly-interest-rates#prior

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Wednesday November 30, 2022 – Yesterday, Ye (formally Kenya West) appeared on Tim Pool’s PodCast. On that show, Ye told the world "But I found out — OK, so they froze, they put a $75 million hold on four of my accounts. And then they said you owe a lot of taxes. Took me, like, six hours to find out how much 'a lot' was. They said, well, around $50 million."

He also claimed they were trying to put him in prison for tax evasion. Ye believes there are powers working against him. He believes the powers are Jewish. His beliefs have cost him many of his sponsors. Gap, Adidas and others.

Attorney Steven A. Leahy reports on Ye’s IRS troubles on Today’s Tax Talk.

https://nypost.com/2022/11/29/kanye-west-said-irs-froze-his-accounts-because-he-owes-50m-in-taxes/

https://www.yahoo.com/entertainment/kanye-west-said-irs-put-055859593.html

https://www.vibe.com/news/entertainment/kanye-west-walks-out-interview-1234714925/

https://www.usmagazine.com/celebrity-news/news/kanye-west-irs-froze-my-accounts-due-to-millions-in-owed-taxes/

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Crypto Tuesday November 29, 2022 - The IRS will spend $80 Billion, mostly on collections. Part of the collection plan includes expanding the IRS Criminal Investigation Unit. And the Criminal Investigation Unit is focused on Crypto for 2023.

We all know the US Government has put crypto in their crosshairs. Beginning in 2016 the IRS has been exposing taxpayers who failed to report their taxable gains from cryptocurrency transactions by issuing John Doe summonses to crypto exchanges and dealers. The IRS does not target the exchanges or dealers with a John Doe Summons, instead the IRS targets the information of their customers. So, keep a close look on the IRS efforts to target you if you are into Crypto.

Attorney Steven A. Leahy investigates the Criminal Investigation Unit of the IRS on Today's Tax Talk.

https://www.nationalreview.com/2022/11/the-irs-is-coming-for-cryptocurrency/

https://www.jdsupra.com/legalnews/irs-s-crypto-john-doe-summons-expanded-2625612/

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Monday November 28m 2022 - Well, the IRS is now WARNING taxpayers about 1099-Ks. Something this channel has been warning about from the beginning of this idea of the Cash App information return requirements found int he American Rescue Plan of 2021.

The reason there for the warning? Many taxpayers will be very surprised this next tax searson. They will receive 1099-K(s) and they will not know what to do with it. They see the trouble brewing.

Attorney Steven A. Leahy reveals the IRS Plans for Business Owners in Today's Tax Talk.

https://www.irs.gov/newsroom/get-ready-now-to-file-your-2022-federal-income-tax-return

https://www.marketwatch.com/story/irs-warns-americans-over-600-threshold-to-report-venmo-paypal-payments-11669480433

https://www.businessinsider.com/side-hustlers-not-reporting-earnings-at-risk-of-irs-audit-2022-11

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Wednesday November 23, 2022 – There is some disturbing news about your most private data – your tax data. It appears that some of the top tax preparation software companies have been sharing taxpayer data with Big Tech Companies. Major tax filing services such as H&R Block, TaxAct, and TaxSlayer have been sharing date secretly with companies like Facebook and Google.

Not only would this be a gross violation of their customers’ trust – it could be a violation of the law. The companies involved here are claiming this was all inadvertent. “We did NOT know and were never notified that personal tax information was being collected by Facebook from the Pixel,” said a vendor of TaxSlayer.

It can be unsettling to learn these large organizations are working together to violate taxpayers’ privacy rights.

Attorney Steven A. Leahy exposes these practices on Today’s Tax Talk.

https://www.theverge.com/2022/11/22/23471842/facebook-hr-block-taxact-taxslayer-info-sharing

https://www.cnbc.com/2022/11/22/popular-tax-prep-software-sent-financial-information-to-meta-report.html

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Tuesday November 22, 2022 - It is Crypto-Tuesday - Today we revisit El Salvador. It was just about a year ago, September 2021, that the El Salvador government adopted bitcoin as legal tender along with U.S. dollars.

This experiment has not turned out as anticipated. In September 2021 Bitcoin was trading at around $45,000.00. Two months later, BitCoin was trading above $69,000.00.

Today, Bitcoin is trading at around $16,000.00.

Rather than back off, Nayib Bukele, the President of El Salvador, announced that El Salvador will continue to buy - at 1 Bitcoin per day.

Attorney Steven A. Leahy

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Monday November 21, 2022 - The inflation Reduction Act of 2022 provided $80 Billion to the IRS primarily to increase collection efforts and improve information technology. That $80 Billion could fund 87,000 new IRS Employees. Or so says report released by the Treasury Department.

The IRS currently has 78,000 employees. This doubling of the IRS has caused much concern to business owners across the country. Remember, not one Republican voted for the Inflation Reduction Act – it was passed on a purely partisan vote.

Now that the GOP will control the house, the incoming Speaker, Kevin McCarthy, and other GOP leaders are promising to reverse that spending Plan.

“On day one, in this House, we will repeal 87,000 IRS agents,” said the incoming speaker. “We will use the power of the purse – the size of our debt has to stop.”

Attorney Steven A. Leahy looks over the GOP plan on Today’s Tax Talk.

https://www.fa-mag.com/news/house-republicans-vow-to-immediately-repeal-funding-for-87-000-irs-agents-70697.html

https://www.bostonherald.com/2022/11/21/elizabeth-warren-jeanne-shaheen-urge-irs-to-investigate-turbotax/

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Thursday November 17, 2022 - At Opem Tax Advocates we are passionate about helping business owners lower their tax bill, avoid audits, and grow their business. So, today, we review an article pointing out that “New business formation has boomed,” and pointing out that “some tax changes -coupled with evergreen tax issues that tend to trip up small business – could cause headaches if owners aren’t careful.”

Attorney Steven A. Leahy also follows up on an old BIG story. Remember when the IRS wanted taxpayers to use facial recognition to use IRS services? Recently, a House Oversight Committee released an investigation into ID.me, “concluding that the company ‘inaccurately overstated its capacity to conduct identity verification services to the Internal Revenue Service.’“

Attorney Steven A. Leahy talks to business owners on Today’s Tax Talk.

https://www.cnbc.com/2022/11/15/business-owners-have-a-big-tax-deadline-coming-up-well-before-april.html

https://www.cyberscoop.com/idme-irs-identity-verificatio

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The Biden Administration has named a Nominee to take over the IRS. His name is Daniel Werfel, now Managing Director and Partner of the Boston Consulting Group.

IRS Commissioner Chuck Rettig’s term formally ended on November 12. Doug O’Donnell, the IRS Deputy Commissioner for Services and Enforcement, is now serving as acting IRS Commissioner.

Mr. Werfel has a long history of government employment. Including, the Office of Management and Budget, The Department of Justice, and Chief of the Financial Integrity and Analysis Branch within the Office of Federal Financial Management, before being app.

https://www.nytimes.com/2022/11/10/us/politics/daniel-werfel-irs-commissioner.html

https://www.hstoday.us/subject-matter-areas/federal-government/former-acting-commissioner-danny-werfel-nominated-to-lead-irs/

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Tuesday November 15, 2022 - Everyone is talking about the collapse of FTX and the firm's founder Sam Bankman-Fried. From hero to zero, overnight!

While this collapse has the striking newness of Cryptocurrency - the scandal in not much different than the bank collapse of old - or the brazen workings of Bernie Madoff.

Attorney Steven A. Leahy will look at this scandal with new eyes on Today's Tax Talk.

https://www.npr.org/2022/11/15/1136641651/ftx-bankruptcy-sam-bankman-fried-ftt-crypto-cryptocurrency-binance

https://www.fox13news.com/news/why-cryptocurrency-experts-investors-are-not-dissuaded-by-the-fall-of-ftx

https://www.msn.com/en-us/money/news/is-ftx-s-sam-bankman-fried-the-next-bernie-madoff/ar-AA148KkL

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Wednesday November 9, 2022 - The IRS calls an audit an “Examination of Returns.” The IRS accepts most federal tax returns just as they are filed. Some returns, however, are selected for review. The IRS selects returns for audit by computerized screening, random sample, or by an income document matching program.

An examination can take place in several ways. Some audits are handled exclusively by US Mail, in the taxpayer’s home or place of business, at an IRS office or at your representative’s office. The time, place, and manner of the audit are negotiable.

Attorney Steven A. Leahy reviews the 11 things you need to know to avid an IRS audit (plus one bonus).

https://chicagotaxteam.com/irs-tax-resolution-blog/irs-audits-looking/

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Monday November 7, 2022 - This space has been reporting on the Cash App law created by the American Rescue Plan of March 2021. The law changed the tax reporting requirements for third-party payment apps from 200 Transactions AND $20,000 or more to $600 or more, no matter the number of transactions.

This change went into effect on January 1, 2022. That means the new rule won’t really come to light until February 2023 when the information Returns must be delivered to taxpayers. Third-party payment apps, like Venmo, paypall, Cash app, etc. are subject to this rule.

But, early on, Zelle let consumers know they were not subject to this new rule. Because Zelle is not a third-party payment app. Instead, Zelle is a bank-to-bank payment service not subject to the 1099-K reporting rules.

Attorney Steven A. Leahy will take a close look at Zelle’s claim on Today’s Tax Talk.

https://www.bloomberg.com/news/articles/2022-11-07/zelle-becomes-loophole-for-businesses-to-avoid-irs-venmo-tax

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Wendesday November 2, 2022 - The IRS has recalculated the guesses they made in 2014 - 2016. And, to one's surprise - the estimates were raised.

The estimates are made up of people who do not file taxes; underreporting, or taxes that are understated on returns that are filed timely; and underpayment, or taxes reported, but not paid, on time.

The outgoing Commissioner Charles Rettig said, "The increase in the tax gap estimates reflects that the IRS needs to do more, both in improving taxpayer service as well as working to improve tax compliance.”

The estimates for the most recent tax reporting year, 2020, vary widely, for $250 Billion to $1 Trillion, depending on who and why the number is being reported.

Attorney Steven A. Leahy looks at the latest estimates on Today's Tax Talk.

https://cbs4local.com/news/nation-world/irs-finds-number-of-unpaid-taxes-rises-fueling-growth-of-tax-gap-internal-revenue-service-audits-income-charles-rettig-inflation-reduction-act-treasury-department

https://www.journalofaccountancy.com/news/2022/oct/growing-tax-gap-shows-need-better-service-compliance-irs-

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Tuesday October 25, 2022 - Crypto news has diminished, along with its market cap. Blockchain has taken over the space.

Blockchain in banking. Blockchain public finanicing. Blockchain in gold market. Blockchain in gaming. Its everywhere.

This expansion was predicted by John McAfee

Attorney Steven A. Leahy discusses Blockchain on Today's Tax Talk.

https://www.yahoo.com/now/fraud-prevention-fuelling-blockchains-adoption-070000893.html

https://www.etftrends.com/crypto-channel/jamie-dimon-praises-blockchain-calling-the-technology-real/

https://www.bloomberg.com/news/articles/2022-10-16/a-proposal-to-track-gold-bars-with-blockchain-technology#xj4y7vzkg

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Wednesday October 19, 2022 – Yesterday the IRS announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes.

The tax year 2023 adjustments described below generally apply to tax returns filed in 2024.

The tax items for tax year 2023 of greatest interest to most taxpayers include the following dollar amounts:

• The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700 up $1,800 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $13,850 for 2023, up $900, and for heads of households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.

• Marginal Rates: For tax year 2023, the top tax rate remains 37% for individual single taxpayers with incomes greater than $578,125 ($693,750 for married couples filing jointly).

The other rates are:

35% for incomes over $231,250 ($462,500 for married couples filing jointly);

32% for incomes over $182,100 ($364,200 for married couples filing jointly);

24% for incomes over $95,375 ($190,750 for married couples filing jointly);

22% for incomes over $44,725 ($89,450 for married couples filing jointly);

12% for incomes over $11,000 ($22,000 for married couples filing jointly).

The lowest rate is 10% for incomes of single individuals with incomes of $11,000 or less ($22,000 for married couples filing jointly).

Attorney Steven A. Leahy reviews the latest changes on Today's Tax Talk.

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

https://thehill.com/policy/finance/3694978-tax-filers-can-keep-more-money-in-2023-as-irs-shifts-brackets/

https://www.cnn.com/2022/10/19/success/inflation-adjustment-2023-taxes/index.html

https://inflationdata.com/Inflation/Inflation_Rate/CurrentInflation.asp?reloaded=true

https://www.irs.gov/newsroom/inflation-adjusted-tax-items-by-tax-year

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Tuesday October 18, 2022 - We have previously reported on the Internal Revenue Service (IRS) switching terms from Virtual Currency to Digital Assets. Today, the IRS clarified how to report Digital Assets on their 1040 income tax forms – setting up additional regulations very soon.

Further, the IRS defined Digital Assets to include:

• Virtual currencies such as Bitcoin and Ether

• Stablecoins such as Tether and USD Coin (USDC)

• Non-fungible tokens (NFTs)

You may owe taxes on the following transactions:

• Sale of a digital asset

• Exchange of digital assets for property, goods or services

• Exchange or trade of one digital asset for another

• Receipt of a digital asset as payment for goods or services

• Receipt of a new digital asset as a result of mining and staking activities

• Receipt of a digital asset as a result of an air drop

• Use of digital assets to pay for goods or services

• Any other disposition of a financial interest in a digital asset

• Receipt or transfer of a digital asset for free (without providing any consideration) that does not qualify as bona fide gift

Attorney Steven A. Leahy looks at the new rules on Today's Tax Talk.

https://www.bloomberg.com/news/articles/2022-10-18/crypto-investors-get-some-answers-in-us-tax-form-instructions

https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets

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Monday October 17, 2022 - The tax return deadline has arrived. This year, because October 15th was a Saturday, the deadline wa pushed to today, October 17, 2022.

Did you know the extension only extends thd date to file your return - and NOT the date to pay your taxes. That date is always the date the returns were due before an extension. Typically, that date is Apri 15th. But, as we have seen, the IRS can change that date for an emergecny. For example - those in Florida have been granted addtional time, on top of the extension, to complete ther returns.

https://www.usatoday.com/story/money/personalfinance/2022/10/16/tax-deadline-extension-october-2022/10495745002/

https://www.marca.com/en/lifestyle/us-news/personal-finance/2022/10/03/633ae40fe2704eebb58b45de.html

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Wednesday October 12, 2022 -Tax Evasion is a crime. Tax Avoidance is your duty, as an American (in my opinion).

Tax avoidance uses the tax code to reduce your total tax liability.

Tax Evasion is violating the law and/or hiding income to evade paying your lawful amount due.

Attorney Steven A. Leahy reviews the difference between Tax avoidance and Tax evasion.

https://www.forbes.com/advisor/taxes/tax-evasion-tax-avoidance/

https://gop-waysandmeans.house.gov/democrats-authorize-the-irs-to-bleed-americans-dry-with-no-accountability/

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Tuesday October 11, 2022 - The Inter-Government battle continues. Which federal agency will win the right to regulate cryptocurrency?

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have brought action against crypto companies trying gain an advantage over the other in winning Congressional approval over which reglatory agency will reighn over the Crypto world.

Today Attorney Steven A. Leahy will explore if question: Is Cryptocurrency a security?

https://www.forbes.com/advisor/investing/sec-crypto-regulation/

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Monday October 10, 2022 - Everyone knows Congress just voted to double the size of the IRS and increase funding by $80 Billion over the next tex years. But, what if the GOP takes Congress the November election. Will they fund the IRS expansion? Afterall, the GOP unanimously opposed the Inflation Reduction Act.

House GOP Leader Kevin McCarthy promised the first act of a new Republican majority would be to pass a bill repealing the new IRS expansion.

Is that good politics? Good policy? Or Both,. Attorney Steven A. Leahy looks at the GOP proposal on Today's Tax Talk.

https://thehill.com/policy/finance/3678188-why-defunding-irs-auditors-wont-be-easy-gop-promise-to-keep/

https://www.wsj.com/articles/gop-gains-in-congress-would-challenge-bidens-irs-expansion-11665266308

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Wednesday October 5, 2022 - Repbulicans are warning voters of the massive increase in IRS budget and workforce. The IRS, aided by the Main Stream Media, is trying to lable this news as disinformaiton - clearly Republican Hyberbole.

The same misleading agruments are broght forth again. For example, the additional funds will simply be used to fill soon to be vacant employee spots due to retirement. Overlooking the fact that the current budget, without the increase, funds the replacements.

This channel has knocked down these strawmen on several other occassions. So, here we go again.

Attorney Steven A. Leahy takes on the challenge on Today's Tax Talk.

https://www.wcax.com/2022/10/05/do-more-irs-agents-mean-youre-getting-audited/

https://www.cbsnews.com/news/republicans-87000-irs-agents-midterm-elections/

https://finance.yahoo.com/news/republicans-warning-army-87-000-025514524.html

https://finance.yahoo.com/news/republicans-warning-army-87-000-025514524.html

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Tuesday October 4, 2022 - Financial Stability Oversight Council (FSOC), ever heard of this coiuncil? Not too many have.

The FSOC is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States' financial system.

In the Council's Annual Report the council warned that unregulated cryptocurrencies could pose a risk to the U.S. financial system. This warning foreshadows additional regulations on the way.

Attonrey Steven A. Leahy looks at the Council's recommendations and the danger ahead.

https://www.barrons.com/articles/cryptocurrency-regulation-fsoc-bitcoin-51664905317

https://www.cnbc.com/2022/10/03/cryptocurrency-treasury-warns-digital-assets-could-threaten-stability-of-economy.html

https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/fsoc/studies-and-reports/annual-reports

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Monday October 3, 2022 - EVERYONE has now heard of the massive expansion of the IRS. But, depending on who you listen to, the impact will not be great - or the impact will be HUGE!

Which is it? Today Attorney Steven A. Leahy reviews two articles. The first, "The tax man is receiving $80bn – but US small businesses shouldn’t worry." Author Gene Marks, takes the former view. All is well. No need to panic.

The second, "When IRS Form 1099 And Tax Returns Don't Match" Author Robert W. Wood pretty much takes the latter view.

Attorney Steven A. Leahy gives you his take on the change on Today's Tax Talk.

https://www.theguardian.com/business/2022/oct/02/inflation-reduction-act-taxes-small-businesses

https://www.ibtimes.com/when-irs-form-1099-tax-returns-dont-match-3619241

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Wednesday September 28, 2022 - United States Senator Elizabeth Warren and House Judiciary Committee Chairman Jerrold Nadler re-introduced the Consumer Bankruptcy Reform Act (CBRA). Both of these sponsored the same, or similar, bill in 2020.

You might be thinking, "didn't Congress revamp the Bankruptcy Code with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)? The answer is, yes. Yes they did. But, in 2005, Congress was controlled by Republicans.

The CBRA will have Democrat issues addressed. Like, addressing racial and gender disparities in the bankruptcy system. Whatever that means.

The Act will also close loopholes that allow the wealthy to exploit the bankruptcy system. Again, whatever that means.

But, the biggest change would be allowing Debtors to discharge student loans in bankruptcy. Something that is very difficult to do under the current rules.

Warren and Nadler have historically supported the most extreme versions of bills. So, expect CBRA to give much to Democrat constituents and hit the middle class in the pocketbook.

Attorney Steven A. Leahy looks at the Consumer Bankruptcy Reform Act of 2022 on Today's Tax Talk.

https://www.warren.senate.gov/newsroom/press-releases/senator-warren-and-representative-nadler-reintroduce-the-consumer-bankruptcy-reform-act

https://www.cbsnews.com/news/elizabeth-warren-bill-student-loans-college-debt-bankruptcy-reform/

https://www.congress.gov/bill/116th-congress/senate-bill/4991

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Monday September 26, 2022 - Who makes tax laws? The IRS or Congress? Many taxpayers don't know that the IRS takes positions on many tax issues that are not consistent with the text of the statute.

Taxpayers are left with an expensive uphill battle once the IRS selects a path. Now, we understand there are appeals, US Tax Courts, Districts Courts - but these steps can be expensive.

Also, Republican canidates for Congress have pledged to end the IRS expansion should they win control of the House of Representatives.

Attorney Steven A. Leahy reports on this practice on Today's Tax Court.

https://www.columbiatribune.com/story/opinion/2022/09/25/tame-your-taxes-irs-regulatory-overreach-part-4/69512731007/

https://www.shorenewsnetwork.com/2022/09/25/we-will-repeal-87000-irs-agents-house-gop-leader-says-gop-will-work-for-you/

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Thursday September 15, 2022 - United States Treasury Secretary Janet Yellen Speaking at an IRS facility in New Carrollton, Maryland, said "the funding will help to improve the IRS in the form of better technology and taxpayer services, and stronger enforcement focused on wealthy Americans and corporations."

Yellon also said "Importantly, I’ve directed that enforcement resources will not be used to raise audit rates for households making under $400,000 a year relative to historical levels,"

Republicans in Congress have prosposed legislation that would prevent the IRS from using any of the Inflation Reduction Act money to audit taxpayers who earn less than $400,000 annually. Good luck.

Attorney Steven A. Leahy critiques Secretary Yellon's announcements about how the IRS will use the $80 Billion windfall on Today's Tax Talk.

https://thehill.com/policy/finance/3644613-yellen-hails-text-message-tax-filing-in-speech-to-irs/

https://www.cnbc.com/2022/08/26/op-ed-the-irs-just-isnt-prepared-for-the-inflation-reduction-act.html

https://www.foxbusiness.com/economy/yellen-outlines-planned-changes-irs-80b-overhaul

https://taxfoundation.org/inflation-reduction-act-irs-funding/

https://www.foxnews.com/us/senate-republicans-protect-americans-earning-less-than-400k-irs-audits

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Wednesday September 14, 2022 - Recently, our Government doubled the size with the Inflation Reduction Act. There have been assurances the IRS will not use this increase in power to target any American group.

Those assurances now ring hollow after Judicial Watch published the recently unsealed 2017 sworn depositions by Lois Lerner, then director of the Exempt Organizations Unit of the Internal Revenue Service and Holly Paz, her top aide and former IRS director of Office of Rulings and Agreements,

Judicial Watch found: "The unsealed Lerner and Paz deposition transcripts reveal through sworn testimony the bureaucratic tangle created by the Obama IRS to single out, delay and deny the processing of conservative, especially Tea Party non-profit groups’ applications for tax-exempt status and to disclose their donors’ names. At the same time, Paz admits under questioning that she knew from the beginning there was not sufficient legal basis to deny most of the targeted groups tax exempt status:"

Attorney Steven A. Leahy reviews the Judical Watch findings on Today's Tax Talk.

https://www.judicialwatch.org/tea-party-targeting/

https://www.foxnews.com/us/senate-republicans-protect-americans-earning-less-than-400k-irs-audits

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Tuesday September 13, 2022 - Cryptocurreny has taken a hit. The values have fallen and have not shown the ability to rebound.

With the fall in value, one year in, El Salvado's Bitcoin experiment has been described as a "Spectacular Failure." President Bukele's promise of building :"Bit Coin City" has not materialized - and it doesn't look as if it will be any time soon.

In addition, the promise of cryptocurrenies as antidotes to totalitarian governments and central banks has been shown, through international events, to fall short of that promise, And, may, in fact, assist as an instrument of tyranny.

Attorney Steven A. Leahy walks you through the Crypto jungle on Today's Tax Talk.

https://cointelegraph.com/news/cryptocurrency-is-picking-up-as-an-instrument-for-tyranny

https://www.msn.com/en-us/money/markets/economist-el-salvadors-year-with-bitcoin-currency-has-been-spectacular-failure/ar-AA11KpPM

https://finance.yahoo.com/news/leading-cryptocurrency-company-coinflip-opens-160000638.html

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Monday September 12, 2022 - You may have heard, Queen Elizabeth II passed away. Generally, when someone passes, their estate is passed on to their family. And, often, there are tax ramifications - especially, with an estate the size of the Queen's.

But, no. Not in this case. In 1993 Parliament passed a law exempts the king from paying taxes on property inherited from the passing of another monarch. In the United Kingdom, the inheritance tax is 40%, applicable to estates greater than $377,000.

Attorney Steven A. Leahy, reviews the tax implications, or lack thereor, to King Charles III upon the passing of his Mother on Today's Tax Talk.

https://www.msn.com/en-us/lifestyle/lifestyle-buzz/here-s-why-king-charles-iii-will-not-pay-inheritance-taxes-on-a-750-million-property/ar-AA11K68j?ocid=anaheim-ntp-feeds&pc=U531&cvid=cfdc1868b24e485680574e0c02082543

https://www.axios.com/2022/09/11/king-charles-inheritance-tax-queen-elizabeth

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Thursday September 8, 2022 - Recently, Congress and the Administration passed the Inflation Reduction Act. That Act authorized $80 Billion to the IRS.over 10 years. According to the United States Department of Treasury, the money "could fund 86,852 full-time hires through 2031."

Add the 10,000 additional employees authorized just prior to the Inflation Reduction Act passing, and we are at nearly 97,000 new hires.

Just what will the IRS do with the new workers? Well, more than half of the money is allocated to enforcement. Read that as "audits."

What can you do to prepare for the 87,000 plus surge in the IRS? Attorney Steven A. Leahy addresses that question on Today's Tax Talk.

https://www.forbes.com/sites/robertwood/2022/09/07/irs-audits-with-no-time-limit-and-no-statute-of-limitations/?sh=11456d35526d

https://www.sgtreport.com/2022/09/consequences-of-87000-new-irs-employees/

https://www.msn.com/en-us/news/us/my-irs-audit-from-hell-over-a-small-boat-and-the-folly-of-87000-new-agents/ar-AA11fccU

https://chicagotaxteam.com/irs-tax-resolution-blog/irs-audits-looking/

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Thursday September 1, 2022 - We all know the IRS is growing - their staff is more than doubling and they have been awarded $80 Billion. More than half of that money is targeted for enforcement.

Many are concerned about doubling the size of the most feared agency in American life. But, the IRS and thier propagandists are playing down the whole matter

The IRS isn't hiring an army of auditors. The IRS isn't arming 87,000 new agents. The IRS isn't targeting anyone who makes less than $400,000 per year. and on and on.

These news stories are simply parroting the talking points of the adminiistration without really looking at the IRS portion of tne Inflation Reduction Act.

Attorney Steven A. Leahy exposes the propaganda on Today's Tax Talk.

https://www.thedailybeast.com/its-about-time-we-properly-funded-the-irs

https://www.cnbc.com/2022/08/31/irs-is-not-hiring-an-army-of-auditors-whats-really-happening.

html https://www.cbsnews.com/news/irs-safety-review-worker-threats/

https://www.yahoo.com/news/80-billion-irs-money-083000868.html

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Wednesday August 31, 2022 - As we talked about on this show, the Amercian Rescue Plan required third-party e-commerce platforms like eBay, Poshmark, Mercari, Depop, and Tradesy to issue a 1099-K tax form to anyone with a total revenue of more than $600. A dramitic change to the old requirement of $20,000.00 in reveneue AND 200 or more transactions.

Well, EBay is now demanding social security numbers from anyone with $600 in sales - or their account will be locked until they comply.

Over and over, I opined that eBay and other cash app vendors would send 1099-Ks to anyone who met the threshold. Over and over, the IRS said no, this will not change the tax consequences of this sales. Only goods and services would be taxed.

Well, that's still true. But, taxpayers who receive more than $600.00 will receive a 1099-K and have to prove to the IRS that the funds were not payments of goods or services.

It will be a nightmare for taxpayers!

Attorney Steven A. Leahy reveals the truth about 1099-Ks on Today's Tax Talk.

https://www.msn.com/en-us/money/personalfinance/why-new-irs-rules-will-be-an-absolute-disaster-for-casual-ebay-users/ar-AA11jpLW?fromMaestro=true

https://www.ecommercebytes.com/2022/08/31/ebay-turns-to-youtube-to-share-tax-message/

https://www.aol.com/finance/used-paypal-venmo-look-irs-120033620.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMukIXC-mlzESc-116NP8JUBjLAOyIQAdC9k6o9LWuPbQBAsiGGoZCIvlYeWfN88NtNwtf8P6lsMiU-8NCgfNEmKw4GbUprlL21CDs3mvFGP9RkenZeinjNU5U3Eo2T3sH5zjKWuwJip5PXurhgD3sxJUSN4QJMwpZgKJ2cKDm8y

https://www.youtube.com/watch?v=Ai8kEOoMYqQ

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Tuesday August 30, 2022 - The battle for control of the Digital Asset marketplace is fully engaged. The question "will the US Government control cryptocurrency and other digital assets" has been answered. Yes.

The new question is "Which government regulatory agency will win the battle of funding - and with funding, control - of the digital market place.

The battle lines are drawn - Recently, a bill was introduced in the United States Senate, Digital Commodities Consumer Protection Act of 2022. That bill "[g]rants the Commodity Futures Trading Commission ("Commission") exclusive jurisdiction over digital commodity trades, except for transactions in which a merchant or consumer is using a digital commodity solely for the purchase or sale of a good or service."

Meanwhile, Gary Gensler, the Chairman of the Securities and Exchange Commission, has staked a claim for the SEC to take the lead regulatory role in controlling the cryptocurrency and digital asset marketplace. The winning agency will be showered with funding - and power - to direct the future of the United States economy.

Attorney Steven A. Leahy exposes the battle that is now underway on Today's Tax Team.

https://www.klgates.com/CFTC-and-SEC-Perspectives-on-Cryptocurrency-and-Digital-Assets-Volume-I-A-Jurisdictional-Overview-5-6-2022

https://www.medianama.com/2022/08/223-summary-digital-commodities-consumer-protection-act-2022/

https://www.foxbusiness.com/features/gary-gensler-gross-sec-overreach

https://247wallst.com/investing/2022/08/22/us-congressman-says-the-sec-acts-like-a-shakedown-authority-with-crypto/

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Monday August 29, 2022 - The recently passed Inflation Reduction Act awards the IRS $80 Billion, nearly doubling the IRS Budget. Earlier this year Congress approved an increase in IRS budget to add 10,000 employees. But, the IRS has had trouble finding enough bodies to fill the spots.

So, the IRS is set to hire 87,000 new employees AND fill the 50,000 jobs open from retirement. Having problems filling the audit spots would be the best thing for the American people.

The IRS has demonstrated their inability to manage the budget they have. This massive increase in the IRS Budget will not make the IRS great administrators.

Attorney Steven A. Leahy looks at the latest news on Today's Tax Talk.

https://www.cnbc.com/2022/08/26/op-ed-the-irs-just-isnt-prepared-for-the-inflation-reduction-act.html

https://finance.yahoo.com/video/irs-commissioner-op-ed-really-210728003.html

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Thursday August 25, 2022 - IRS Commissioner Charles P. Rettig penned an Op-Ed today "[t]o set the record straight on this important legislation and dispel any lingering misperceptions."

Then he goes about knocking down every strawman agrument he could find. The first Strawman - "The IRS is hiring 87,000 armed special agents to harass taxpayers." I don't think anyone in America believes - or has said - that each and every new hire of the IRS would be armed.

However, the fact the IRS has ANY armed officers is troubling. And the recent news that ads seeking IRS armed agents specifically said that they must be willing to use deadly force AND that the IRS has purchased $700,000.00 in ammo in between March and June of 2022, added to the 5 million ammo stockpile they already had.

Rettig goes on to knock down four more strawman in his piece.

Attoreny Steven A. Leahy asks the question - Why not answer real questions Commissioner on Today's Tax Talk.

https://finance.yahoo.com/news/irs-sets-the-record-straight-130049197.html

https://nypost.com/2022/08/13/gop-demands-answers-on-700k-ammo-stockpile-for-irs-enforcement/

https://www.verifythis.com/article/news/verify/government-verify/internal-revenue-service-did-buy-nearly-700k-in-ammunition/536-0ce9f538-a372-4c26-8013-1ab4e571578c

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Wednesday August 24, 2022 - Today the IRS announces broad-based penalty relief for certain 2019 and 2020 returns due to the pandemic; $1.2 billion in penalties being refunded to 1.6 million taxpayers.

IRS Commissioner Charles P. Rettig said "Penalty relief is a complex issue for the IRS to administer. We've been working on this initiative for months following concerns we've heard from taxpayers, the tax community and others, including Congress. This is another major step to help taxpayers, and we encourage those affected by this to review the guidelines."

As with most IRS tax relief plans - if you followed the rules and filed on time - there is nothing for you. Not even a thank you.

Attorney Steven A. Leahy looks over this new IRS plan on Today's Tax Talk.

https://www.irs.gov/newsroom/covid-tax-relief-irs-provides-broad-based-penalty-relief-for-certain-2019-and-2020-returns-due-to-the-pandemic-1-point-2-billion-in-penalties-being-refunded-to-1-point-6-million-taxpayers

https://www.irs.gov/pub/irs-drop/n-22-36.pdf

https://www.msn.com/en-us/money/taxes/irs-to-refund-16-million-people-who-missed-tax-filing-deadlines/ar-AA113RCj?fromMaestro=true

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Tuesday August 23, 2022 - Cryptocurrency has been all the rage since Satoshi Nakamoto's famous Whitepaper "Bitcoin - a Peer to Peer Electronic Cash System." Turns out, that famous whitepaper was really about the Blockchain.

Now, I'm not discounting Cryptocurrency - it has already changed the world - with much promise remaining. But, it sure looks like Blockchain Technolgy is leaving Crypto behind.

Blockchain is changing the Web (Facebook and Twitter will soon be obsolete thanks to blockchain technology), Insurance (Blockchain in Insurance: How Will it Change the Industry?), transportation (How blockchain can fix the transportation menace", and Banking (Wall Street Bankers Tap Blockchain Use Beyond Crypto) - and those are just today's stories.

Attorney Steven A. Leahy takes a look at how Blockchain is chang9ng how we do busiess in every sector.

https://cointelegraph.com/news/facebook-and-twitter-will-soon-be-obsolete-thanks-to-blockchain-technology

https://readwrite.com/blockchain-in-insurance-how-will-it-change-the-industry/

https://www.financialexpress.com/digital-currency/how-blockchain-can-fix-the-transportation-menace/2640456/

https://www.pymnts.com/blockchain/2022/wall-street-bankers-tap-blockchain-use-beyond-crypto/

https://www.americanactionforum.org/insight/tracker-crypto-and-fintech-developments-in-the-biden-administration/

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Thursday August 18, 2022 - Congress has awarded the IRS $80 Billion! It's like winning the lottery! The recent problems with the IRS are well known: Huge backlog of tax return processing, delays in issuing refunds, answering only 1 in 9 phone calls, accusations of political bias, cybersecurity incurrsions, privacy breeches, and on and on.

Will this monumental infussion of cash solve all of those problems. That is the question Americans should be asking. We already fund the IRS to a tune of nearly $14 Billion a year. That aint hey. It's not like they aren't funded. Have you EVER heard a United States Government Agency say they are adequatley funded?

There are those already saying this IRS increase is not enough...the IRS needs more!

Attorney Steven A. Leahy looks at the IRS as it stands and asks the question - Will $80 Billion Fix the IRS? on Today's Tax Talk.

https://www.bloomberg.com/opinion/articles/2022-08-17/the-irs-has-problems-that-80-billion-won-t-solve

https://www.foxnews.com/media/wapo-fact-checker-glenn-kessler-claims-gop-preying-voters-fear-irs-twitter-lights-him-up

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Wednesday August 17, 2022 - Well, President Bident signed the Inflation Reduction Act into law yesterday. The IRS just received an additional $80 Billion dollars over the next 10 years - a 75% increase in the IRS budget. Did you know the IRS budget, after all supplemental funding is close to $14 Billion dollars already!

Treasury Secretary Janet Yellen promised “these investments will not result in households earning $400,000 per year or less or small businesses seeing an increase in the chances that they are audited relative to historical levels.”

IRS Commissioner Charles Rettig have promised “These resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans”

Attorney Steven A. Leahy measures these promises with the facts on Today's Tax Talk.

https://mycbs4.com/news/nation-world/fact-check-team-how-the-irs-expansion-could-impact-middle-class-americans-new-spending-bill-provides-80b-to-irs-for-enforcement-audits-on-high-income-taxpayers-irs-expansion-democrats-reconciliation-bill-will-add-87000-employees-to-irs-to-improve-efficie

https://finance.yahoo.com/news/dont-worry-about-a-beefier-irs-unless-youre-a-tax-cheat-202620223.html

https://news.yahoo.com/yellen-eyes-80b-boost-monumental-151335732.html

https://www.cnbc.com/2022/08/08/reconciliation-bill-includes-nearly-80-billion-for-irs-funding.html

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Tuesday August 16, 2022 - President Biden signed the Inflation Reduction Act today. You may not know the Inflation Reduction Act allocates $4.6 billion dollars to "Enforcement."

The Act also explictly directs the IRS to perform "digital asset monitoring and compliance activities.”

"(ii) ENFORCEMENT.—For necessary expenses for tax enforcement activities of the Internal Revenue Service to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities,"

Attorney Steven A. Leahy reviews the impact of the Inflation Reduction Act on Cryptocurrency and Digital Assets.

https://www.cpapracticeadvisor.com/2022/08/14/what-the-inflation-reduction-act-means-for-cryptocurrency-regulation/69430/

https://www.forbes.com/sites/taxnotes/2022/08/04/what-the-irs-funding-in-the-inflation-reduction-act-means-for-taxpayers/?sh=61ee2ddf374d

https://www.news.com.au/breaking-news/has-blockchain-found-a-use-beyond-crypto-trading/news-story/203a968b109c9929eccf8e58f9f54aed

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Monday August 15, 2022 - The Inflation Reduction Act (IRA) is not yet law, but will be too soon. Democrates and Progressives think the IRA is going to solve all of our problems by making the rish pay their fair share and protecting all others from increased taxes.

"By beefing up the IRS's capacity to go after wealthy tax cheats, you're going to be able to collect at least $400 billion of that over the course of the next ten years, and I suspect substantially more," said Treasury Department employee.

The truth is not as appealing as the Treasury would lead us to believe.

Attorney Steven A. Leahy reveals tthe good news according to progressives.

https://www.npr.org/2022/08/14/1117317757/irs-tax-evaders-dodgers-inflation-reduction-act-enforcement

https://www.commondreams.org/news/2022/08/13/biggest-win-tax-fairness-decades-progressives-cheer-reforms-ira-demand-more

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Thursday August 11, 2022 - The Inflaction Reduction Act will allow the IRS to hire an army of new auditors. But, the IRS is already looking to hire 300 Criminal Investigation Special Agents. The job posting for that position has garnered lots of attention.

In addition to the duties one would expect for an IRS agent, the posting included "legally allowed to carry a firearm," and "major duties" include "Carry a firearm and be willing to use deadly force, if necessary" and "Be willing and able to participate in arrests, execution of search warrants, and other dangerous assignments,"

Attorney Steven A, Leahy exposes the IRS job posting on Today's Tax Talk.

https://www.foxbusiness.com/politics/irs-faces-online-uproar-special-agent-job-posting-requiring-ability-use-deadly-force-necessary

https://www.marketwatch.com/story/yes-the-irs-is-hiring-criminal-investigators-that-can-use-deadly-force-but-heres-some-context-11660247355

https://www.nationalreview.com/news/irs-deletes-job-posting-seeking-applicants-willing-to-use-deadly-force/

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Tuesday August 9, 2022 - The IRS is still evolving their handling of Cryptocurrency. They included, for the first time, a "virtual currency" question on the 2019 1040 Tax Return. That year, the queston was placed on Schedule 1 "Additional Income and Adjustments to Income." and asked "At any time in 2019 did you receive, sell, send, exchange or otherwise aquire any financial interest in any virtual currency?"

The question did not change for 2020 - but where the question was asked was. The queston was moved from Scheudle 1, a scheudle not included on every 1040 tax return, to the front page. Acutally, the first question - right under the taxpayers' name and address.

In 2021, the question changed slightly. Instead of asking if a taxpayer - "otherwise aquired" an interest in virtual curreny - the question focused on the disposal of virtual currency, as that is the trigger to a taxable even.

In 2022 - the question is proposed "At any time during 2022, did you: (a) receive (as a reward, award, or compensation); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"

This new queston is captures much more than the previous questions. Note the shift from "virtual curreny" to "digital assets."

Attorney Steven A. Leahy comments on the proposed changes to the crypto queston on 1040 tax forms on Today's Tax Talk.

https://money.com/irs-crypto-question-tax-return/

https://news.bitcoin.com/irs-expands-crypto-question-on-tax-form/

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Monday August 8, 2022 - We have been reporting on the massive expansion of the IRS for some time. Several times, it looked like the expansion was dead, dead, dead.

But, no. IRS Expansion was ALWAYS going to happen, as long as the Democrates have Congress. They can't spend more money unless they raise more money. And they can't say they are raising taxes. So, they have to invent gimmicks and work arounds. Like increasing audits to tax the rich.

We all know, the additional 1.2 million audits per year will taget everyone but the wealthy.

Attorney Steven A. Leahy goes through the numbers on Today's Tax Talk.

https://www.americanthinker.com/articles/2022/08/increasing_the_irs_annual_budget_by_seven_times_doesnt_add_up.html

https://www.washingtontimes.com/news/2022/aug/6/the-misnamed-inflation-reduction-act-a-pointless-g/

https://republicans-budget.house.gov/press-release/democrats-inflation-act-empowers-irs-to-audit-and-harass-hardworking-americans/

https://gop-waysandmeans.house.gov/brady-on-manchin-biden-bill-attention-wal-mart-shoppers-more-irs-audits-headed-your-way/

https://www.finance.senate.gov/ranking-members-news/crapo-democrats-are-proposing-more-taxes-more-spending-higher-prices-and-an-army-of-irs-agents

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Thursday August 4, 2022 - The Inflation Reduction Act (yeah, right) proposes doubling the size of the IRS to collect more taxes by increasing audits on wealthy tax cheats.

Today, IRS Commissioner Charles Rettig promised “These [additional] resources are absolutely not about increasing audit scrutiny on small businesses or middle-income Americans. As we have been planning, our investment of these enforcement resources is designed around Treasury’s directive that audit rates will not rise relative to recent years for households making under $400,000.”

So, not to worry America - the IRS isn't coming after you. Or, are they?

Attorney Steven A. Leahy looks at the IRS promises and helps you decide if you can count on those promises.

https://www.nytimes.com/2022/08/04/business/irs-audits-funding-congress.html

https://nypost.com/2022/08/03/why-irs-80b-expansion-is-a-nightmare-for-small-business/

https://www.washingtonexaminer.com/restoring-america/fairness-justice/as-irs-prepares-to-double-in-size-it-isnt-the-billionaires-who-should-be-worried

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Tuesday August 2, 2022 - The infrastructure bill Congress passed in November 2021 contained new “broker rules.” The broker rules require that crypto firms collect customer transaction data and is set to take effect in 2023 with full reporting to occur in 2024 (for calendar year 2023).

These rules are designed to overcome the difficuties taxpayers have found when reporting cryptocurrency trades on their annual tax returns.

Recently, the IRS announced it is crafting a new information return dubbed 1099-DA (Digital Asset). This form is speicically designed to report the information needed to calculate gains (or losses) such as the asset type, date purchased, date sold, gross proceeds and cost basis.

Attorney Steven A. Leahy reviews the IRS proposal and how it will effect taxpayers on Today's Tax Talk.

https://www.forbes.com/sites/shehanchandrasekera/2022/08/01/the-irs-is-working-on-a-new-tax-form-to-capture-your-crypto-activity/?sh=48a1bbc6c23c

https://www.lexology.com/library/detail.aspx?g=a33c41f7-d82f-4366-b10e-c946c747d6ac

https://coinledger.io/blog/form-1099-da

.

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Monday August 1, 2022 - If you are lucky, you may win the Lottery or find treasure. Or, if you are the IRS, you do both routinely.

That's because, each time someone wins something, anything, the IRS gets their end.

The recent news of the lucky Illinois resident who hit the $1.3 billion Mega Millions Jackpot is a good case study. The prize is set to be paid out over 30 years - or a lump sum upfront. Either sceanerio has the IRS and the Illinois Department of Revenue racking in a sizeable bounty.

But the lottery isn't the only boon for the taxing authorities. Found treasure is income. Treasure, like a historic baseball cought by a fan, could be taxable.

Attorney Steven A. Leahy talks about these tax obliations on Toiday's Tax Talk.

https://www.kiplinger.com/taxes/602142/tax-on-mega-millions-jackpot

https://www.abqjournal.com/2520585/baseball-history-frequent-flyer-miles-and-the-irs.html

https://www.thecentersquare.com/illinois/illinois-quick-hits-lottery-winner-could-pay-386-million-in-taxes-work-comp-fraud-case/article_d86cdac8-11ad-11ed-9cf8-3fc09e1f3f14.html

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Thursday July 28, 2022 - Have the Democrats finally come together to double the size of the IRS? Senator Joe Manchin and Senator Chuck Schumer announced a deal today they are calling the Inflation Reduction Act of 2022.

How will this bill reduce inflation? Easy, the IRS will be granted more power, and more money, to squeeze American Businesses to pay for climate change, health care, prescription drugs and pre-K schooling.

The IRS portion of this spending bill is more than $80 Billion with a promise to collect more than $700 Billion to narrow the tax gap.

Attorney Steven A. Leahy will take a close look at this bill on Today's Tax Talk.

https://reason.com/2022/07/28/supersizing-the-irs-will-hurt-the-working-rich-not-tax-evaders/

https://federalnewsnetwork.com/hiring-retention/2022/07/irs-gets-80b-to-rebuild-its-capacity-under-senate-reconciliation-deal/

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Tuesday July 26, 2022 - Not long ago - almost yesterday - regulators were citing the rise in Cryptocurrency value as reason to heavily regulate the industry.

Now, Cryptocurrency values have plummeted - losing more than $1 Trillion in value in a matter of weeks. And regulators are coming out of the woodwork to impose ever more regulations. All the heavy hitters, who were set to protect Cryptocurrency with political donations are gone.

Attorney Steven A. Leahy looks at the regulatory future of Cryptocurrency on Today's Tax Talk.

https://time.com/nextadvisor/investing/cryptocurrency/crypto-price-crash-leads-to-regulation/

https://www.justice.gov/opa/pr/ceo-titanium-blockchain-pleads-guilty-21-million-cryptocurrency-fraud-scheme

https://www.bloomberg.com/news/articles/2022-07-26/coinbase-faces-sec-investigation-over-cryptocurrency-listings

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Thursday July 21, 2022 - On Wednesday the IRS published a 26-page IRS Strategic Plan FY 2022–2026 (Publication 3744). The publication intends to "share [their] strategic priorities and how they shape the important work that takes place at the IRS, year in and year out, to help taxpayers."

The plan outlines five Goals - Service, Enforcement, People, and Transformation - and strategies to accomplish each goal.

"The strategic planning team within the Office of the Chief Financial Officer facilitated the development of this plan through an inclusive and deliberative process that engaged IRS employees, leaders, advisory groups and key stakeholders, including the Department of the Treasury."

Attorney Steven A. Leahy goes through the plan to clarify how this plan will effect individual taxpayers on Today's Tax Talk.

https://www.irs.gov/about-irs/irs-strategic-plan

https://www.journalofaccountancy.com/news/2022/jul/irs-seeks-transformation-new-5-year-plan.html

https://news.bloombergtax.com/daily-tax-report/irs-releases-5-year-strategic-plan-to-improve-taxpayer-service

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Tuesday July 19, 2022 - We all know about the Crypto Crash. If Crypto never recovers, does that mean the end of Blockchain too?

In this space, we have long held that crypto, while interesting and important, is not Blockchain. Blockchain technology is really the advancement - and potential transformation technology. Crypto is merely its first iteration.

Attorney Steven A. Leahy talks about Blockchain without Crypto on Crypto Tuesday's edition of Today's Tax Talk.

https://cointelegraph.com/news/blockchain-without-crypto-adoption-of-decentralized-tech

https://www.livemint.com/companies/people/blockchain-uses-are-far-beyond-cryptos-11658139658271.html

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Thursday July 7, 2022 - The IRS is being accused, yet again, of political targeting. This time the alleged targets are former FBI Director James Comey and former Deputy Director Andrew McCabe.

Both men were subject to a National Research Program audit (NRP). The NRP is run from the IRS’s Research, Applied Analytics and Statistics Division. That division is directed by career statisticians and data scientists.

Those chosen for an audit are randomly selected by a computer program from a list of taxpayers across the income spectrum to determine compliance levels with the nation’s tax codes, according to John Koskinen, the former IRS commissioner.

Current IRS commissioner , Charles Rettig, was appointed by President Trump. His term ends in November 2022. There was already talk of the Biden Administration replacing him. Now, some in Congress are demanding he be fired immediately.

Attorney Steven A. Leahy reviews the allegations on Today's Tax Talk.

https://thehill.com/policy/finance/3549408-irs-in-political-storm-over-trump-era-audits/

https://www.washingtonpost.com/us-policy/2022/07/07/trump-irs-rettig-audit/

https://www.nytimes.com/2022/07/07/us/politics/irs-comey-mccabe.html

https://www.irs.gov/irm/part4/irm_04-022-001

https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax

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Wednesday July 6, 2022 - More US citizens than ever are renouncing their US citizenship. While politics plays a part - the most common reason is TAXES. US Expatriates (those Americans living outside the country) are still subject to US tax laws, FBAR and FATCA rules. Often, that means double taxation - and it ALWAYS means following US tax laws.

When US Citizens elect to renounce their citizenship they find a SURPRISE - and exit tax.

That's right. Before someone is allowed to give up their citizenship they have to pay a tax on ALL of their assets.

Attorney Steven A. Leahy reveals the cold hard truth about the EXIT tax on Today's Tax Talk.

https://www.forbes.com/sites/robertwood/2022/07/06/leave-us-pay-irs-taxes-forever/?sh=3367259c1a30

https://www.irs.gov/individuals/international-taxpayers/expatriation-tax

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Thursday June 30, 2022 - Taxpayers can subscribe to IRS "Tax Tips to get easy-to-read tips about taxes via e-mail from the IRS throughout the year." Tax Tips are brief, to the point and cover a wide-range of topics.

A recent tax tip email titled "Here are some things gig economy workers should know about their tax responsibilities." altering gig workers to their tax obligations.

Remember, the gig economy is a key sector the IRS is targeting as "cheaters." So, the IRS reminds them - "Gig work is taxable" Suggests that gig workers should make sure they are properly classified as independent contractors, rather than employees. And, directs them to make estimated payments throughout the year to avoid penalties.

Attorney Leahy reviews the IRS Tax tips, so you don't have to on Today's Tax Talk.

You can subscribe to the IRS Tax Tips email here:

https://service.govdelivery.com/accounts/USIRS/subscriber/new

https://www.irs.gov/newsroom/here-are-some-things-gig-economy-workers-should-know-about-their-tax-responsibilities

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

https://www.irs.gov/businesses/gig-economy-tax-center

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Wednesday June 29, 2022 - One of the most common IRS questions I receive is from Parents who are divorced, separated, never married or live apart and who share custody of a child with an ex-spouse or ex-partner who ask "Who can claim our child as a dependent?"

Only one person may be eligible to claim the qualifying child as a dependent.- and receive the tax benefit - Parents can't share or split up the tax benefits for their child on their tax returns.

Recently, the IRS issued a press release on this subject. Attorney Steven A. Leahy reviews this press release and clarifies the IRS rules on Today's Tax Talk.

https://www.irs.gov/newsroom/claiming-a-child-as-a-dependent-when-parents-are-divorced-separated-or-live-apart

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Wednesday June 22, 2022 - Everyone knows - The IRS is behind on processing tax returns. They are still processing 2020 tax returns - but predict the backlog will be cleared this week.

The IRS Commissioner Charles P. Rettig has promised the backlog "should 'absolutely' resolve before December" 2022 However, the backlog is still more than 11 million individual returns.

Attorney Steven A. Leahy looks at the progress the IRS has made on clearing up the backlog on Today's Tax Talk.

https://federalnewsnetwork.com/agency-oversight/2022/06/irs-expects-to-finish-processing-2021-tax-return-backlog-this-week/

https://www.myjournalcourier.com/news/article/IRS-erases-last-season-s-backlog-but-still-faces-17256437.php

https://www.msn.com/en-us/money/taxes/irs-is-making-progress-on-tax-return-backlog-but-millions-still-remain-unprocessed/ar-AAYJT07

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Tuesday June 21, 2022 - It is Crypto Tuesday! If you have been paying any attention to the Crypto market this past week - you watched the price of Bitcoin - and other tokens - fall like a rock, only to bounce back a little over the last several days.

Is this a Dead Cat Bounce? Or a real rebound. For those not familiar with the term "Dead Cat Bounce," here is the definition from merriam-webster.com: a brief and insignificant recovery (as of stock prices) after a steep decline.

Attorney Steven A. Leahy looks at the recent Cryptocurrency market swings on Today's Tax Talk.

https://www.cnbc.com/2022/06/20/bitcoin-btc-rebounds-but-struggles-to-hold-above-20000-.html

https://www.merriam-webster.com/dictionary/dead-cat%20bounce

https://www.tampafp.com/rep-gaetz-why-has-bidens-irs-purchased-more-than-700k-of-ammo/

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Thursday June 16, 2022 - We just passed the one year anniversary of the ProPublica published the first pieces in a series dubbed "The Secret IRS Files: Inside the Tax Records of the .001%." One year later, we still don't know who leaked this private tax information.

Is anyone even investigating the breach? No one will say. Certainly the IRS won't say - nor with ProPublica. In fact, ProPublica is still publishing new tax information.

While the IRS is not protecting private tax information, Congress is paving the way for further increases to the IRS budget. To the tune of $1Billion Dollars.

Attorney Steven A. Leahy reviews the Congressional proposal to increase the IRS budge in light of all of the IRS short comings on Today's Tax Talk.

https://www.realclearpolitics.com/articles/2022/06/15/why_has_the_propublica_investigation_yet_to_see_the_light_of_day_147743.html

https://reason.com/2022/06/03/irs-leak-of-billionaires-tax-data/

https://www.accountingtoday.com/news/house-committee-proposes-1b-funding-boost-for-irs

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Tuesday June 14, 2022 - What goes up, must come down. The old axiom rings true. Look at Bitcoin - the Gorilla of crypto - it was trading at nearly $70,000.00 in November 2021. Today, Bitcoin went below $21,000 for a short time. It's fallen 25% in the past five days alone, to its lowest value in 18 months.

Crypto has always been volatile - it has weathered several "Crypto Winters" in its short life. Last month two coins, TerraUSD and cryptocurrency Luna, both of Terraform Labs, dropped to nearly zero in value.

Terraform Labs has since introduced Luna 2.0. “A chance to rise up anew from the ashes,” said Do Kwon, founder of Terraform Labs.

Attorney Steven A. Leahy takes a look at the ashes of the market to see if the phoenix will rise again on Today's Tax Talk.

https://www.bbc.com/news/technology-61796155

https://www.msn.com/en-us/news/technology/their-cryptocurrencies-crashed-the-market-now-they-e2-80-99re-back-at-it/ar-AAXX7ZH

https://threadreaderapp.com/thread/1536476104986267648.html

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Monday June 13, 2022 - The IRS is not too active collecting immediately after tax season. After all, they have a lot to do. But, come to the end of June, into July, expect the IRS to start contacting you about any unpaid tax, or any questions they might have about matching information returns with tax returns.

IRS Form CP14 is the first in a series of letters the IRS will send you if there is an unpaid balance for the last tax year. When asked, "What is the notice about?" The IRS answers, "We sent you this notice because you owe money on unpaid taxes."

If you receive IRS Notice CP14 - read it carefully. The notice will tell you how much the IRS says you owe, when the IRS expects you to pay, and what to do if you disagree.

If you disagree - contact the IRS right away. Object! If the IRS is correct, and you can pay, pay right away to avoid penalties and interest.

If you can't pay - this Notice is not the last you will hear from the IRS. There is a series of letters the IRS must send BEFORE they can take anything away from you (Levy). So, you still have some time to work out an Installment Agreement, or some other remedy with the IRS.

Attorney Steven A. Leahy helps taxpayers who owe the IRS. So, he has seen IRS Notice CP14 before.

https://www.irs.gov/individuals/understanding-your-cp14-notice

https://www.nbc4i.com/news/local-news/columbus/still-owe-taxes-heres-an-irs-notice-to-watch-for/

https://www.cbsnews.com/news/irs-cp14-notice-taxes-due/

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Wednesday June 8, 2022 - United .States Treasury Secretary Janet Yellen appeared at a Senate Hearing on Tuesday and said "The IRS is under siege. It is suffering from huge underinvestment,"

She, again, urged Congress to pass the Build Back Better Bill, or at least that portion that funds the IRS with an additional $80 billion over 10 years. That legislation would nearly double the IRS Budget and more than double the number of IRS employees.

Approving Treasury's budget request would allow the IRS "to be able to ... make sure that people are paying the taxes that are due.

Attorney Steven A. Leahy reports on this important story on Today's Tax Talk.

https://youtu.be/8sinW9P9Hok?t=7199

https://www.yahoo.com/video/yellen-says-irs-under-siege-184329459.html

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Tuesday June 7, 2022 - Legislation was introduced in Congress today that would classify the vast majority of digital assets as commodities, giving regulatory control to the Commodity Futures Trading Commission.

The Bill is presented as the bill as “landmark bipartisan legislation that will create a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency and robust consumer protections while integrating digital assets into existing law.”

there are those that believe, "[i]n order for cryptocurrencies to truly expand to their highest possible market reach and for the technology underlying these digital assets to fully provide benefits to global economies, regulation is critical. In order for there to be effective regulation, there must be clearly defined terms and distinctly assigned overseeing bodies"

Attorney Steven A. Leahy reviews the proposed legislation on Today's Tax Talk Crypto-Tuesday edition.

https://www.cnbc.com/2022/06/07/bipartisan-crypto-bill-lummis-and-gillibrand-want-to-empower-cftc-treat-digitals-assets-like-commodities.html

https://www.benzinga.com/markets/cryptocurrency/22/06/27591741/bitcoin-ethereum-and-dozens-of-others-to-be-classified-as-commodities-according-to-new-cry

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Monday June 6, 2022 - Where you reside and where you are domiciled are not always the same, and may be VERY important when paying state taxes.

My practice is in Illinois. Many Illinois residents are fleeing Illinois for greener (and cheaper) pastures. But, Illinois wants to hang on to these Illinoisans and their tax payments. Simply moving to a new state may not be enough to cut the ties and change your domicile.

Other states have this same issue. Attorney Steven A. Leahy reviews the case of O. Gene Bicknell vs. Kansas Department of Revenue and the chance that your chance of being audited just doubled. Both stories on Today's Tax Talk.

https://www.wsj.com/articles/pizza-hut-tax-battle-bicknell-kansas-florida-change-of-residence-11654290410

https://www.fingerlakes1.com/2022/06/05/if-you-make-over-100000-risk-of-audits-double-as-tax-laws-change-including-the-reporting-of-600-through-cash-apps-to-the-irs/

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Wednesday June 1. 2022 - IRS Audits are called "Examinations." And the IRS conducted 243,715 individual examinations in 2019. While the numbers have dropped - that is still a lot of audits.

The Chrisley Tax Evasion Trial is good example of what not to do. Taxpayer's should be aware that an examination can turn into a criminal investigation. So, you should never lie to an IRS employee. Also, don’t engage in evasive or obstructionist behavior during an IRS audit. That can get you in trouble.

Attorney Steven A. Leahy reviews the Chrisley case and then looks at the IRS Examination numbers recently released in the 2021 Internal Revenue Service Data Book on Today's Tax Talk.

https://www.forbes.com/sites/robertwood/2022/06/01/tax-tips-from-chrisley-knows-best-tax-evasion-trial/?sh=313a90f55511

https://www.irs.gov/statistics/soi-tax-stats-irs-data-book

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Tuesday May 31, 2022 - The Crypto Crash of recent weeks has put many on alert. Some have seen this as the demise to Cryptocurrency AND Blockchain technology. But don't let short term fluctuations sour you to this technology.

Cryptocurrency has been hyped and there is many speculators out there trying to cash in. The speculation has led to huge swings in the prices of Bitcoin and all the Alt coins. Unfortunately, the swings have been on the down side recently.

Don't be fooled. Cryptocurrency AND Blockchain technology is here it stay. The potential to change how the world operates is still there - and growing stronger by the day. In many ways, the volitivity is proof of this statement.

Attorney Steven A. Leahy looks at the latest Crypto and Blockchain news on Today's Tax Talk.

https://opinion.inquirer.net/153497/all-about-blockchain

https://www.analyticsinsight.net/cryptocurrency-projects-that-will-change-the-digital-asset-investment-world-ethereum-eth-solana-sol-and-logarithmic-finance-log/

https://www.ibtimes.com/moneygram-partners-stellar-blockchain-plans-wallet-deal-el-salvador-report-3526108

https://cointelegraph.com/news/tips-to-claim-tax-losses-with-the-us-internal-revenue-service

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Thursday May 26, 2022 - The Internal Revenue Service (IRS) Data Book is published annually by the IRS and contains statistical tables and organizational information on a fiscal year basis. The report provides data on collecting the revenue, issuing refunds, enforcing the law, assisting the taxpayer, and the budget and workforce.

The IRS is very good at compiling statistics, and breaking those statistics down into categories. The 2021 Data Book was released today. It will take some weeks for me to review all that data.

Because my practice focuses on helping people with tax problems, the first table I look at is Table 25. Delinquent Collection Activities, Fiscal Years 2020 and 2021. This chart breaks down the collection numbers.

Attorney Steven A. Leahy looks at the new IRS numbers on Today's Tax Talk.

https://www.irs.gov/statistics/soi-tax-stats-irs-data-book

https://www.washingtonexaminer.com/news/washington-secrets/americans-paying-most-income-taxes-ever

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Tuesday May 24, 2022 - Have you noticed - Cryptocurrency is volatile? Back in 2014 the IRS announced that crypto is property for tax purposes. Not currency, not securities, but property. So, some tax rules that apply to currency or securities do not apply to cryptocurrency.

Rules like the Wash Sale Rule. You can sell your crypto and buy it right back without a 30 day waiting period. Each trade is a taxable event.

The IRS is still inventing the rules for Cryptocurrency. The IRS believes that as much as 10% of the Tax Gap (the difference between how much the IRS collects and how much the IRS should collect), or more than $50 billion, is the result of crypto traders avoiding reporting.

Attorney Steven A. Leahy reports on Cryptocurrency and the IRS on Today's Tax Talk.

https://www.forbes.com/sites/robertwood/2022/05/19/do-crypto-losses-trigger-tax-losses-with-irs/?sh=18dd83e24419

https://www.cnbc.com/2022/05/18/irs-may-be-missing-out-on-50-billion-dollars-a-year-in-unpaid-crypto-taxes.html

https://www.vox.com/recode/2022/5/11/23065956/detectives-crypto-cops-irs-fbi-cyber-bitcoin

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Monday May 23, 2022 - Foreclosures have not been an issue since the pandemic. One of the first things Government did was to issue a Foreclosure Moratorium.

Last August the CDC moratoriums came to and end based on a United States Supreme Court ruling on the issue.. Some States (like Illinois) maintained a foreclosure moratorium thereafter - but no more!

“A total of 50,759 U.S. properties started the foreclosure process in the first quarter of 2022, up 67% from the previous quarter and up 188% from a year ago,” Chicago saw over 3,000 foreclosures in the first three months of the year.

Attorney Steven A. Leahy reviews the numbers and also talks about the tax implications of losing a home to foreclosure. Did you think the IRS wouldn't be involved?

https://www.courthousenews.com/foreclosure-wave-sweeping-us-crests-in-chicago/

https://recentlyheard.com/2022/05/22/foreclosures-and-your-income-tax/

https://propertyonion.com/education/supreme-court-throws-out-the-foreclosure-moratorium/

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Wednesday May 18, 2022 - The United States Government Accountability Office recently released Report to the Chairman, Subcommittee on Oversight, Committee on Ways and Means, House of Representatives titled "TAX COMPLIANCE Trends of IRS Audit Rates and Results for Individual Taxpayers by Income."

The Report found that In recent years, IRS has examined, or audited, a decreasing proportion of individual tax returns. This trend has raised concerns about the potential for

declining taxpayer compliance, as well as whether IRS is equitably selecting taxpayers for audit, as audit rates for

higher-income taxpayers have decreased more than audit rates for lower-income taxpayers.

Attorney Steven A. Leahy reviews this recent report and details how these changes may effect taxpayers on Today's Tax Talk.

https://www.forbes.com/sites/ashleaebeling/2022/05/18/irs-tax-return-audit-rates-plummet/?sh=2a46301d1cca

https://www.accountingtoday.com/news/irs-audit-rates-plummet-especially-for-wealthy

https://www.gao.gov/assets/gao-22-104960.pdf

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Tuesday May 17, 2022 - Cryptocurrency has grown up - and legislators and regulators have noticed. We have covered many new regulations and proposed regulations over the last many months.

In response, Crypto is sending in the lobbyists and pouring millions of dollars into primary elections to gain influence over members of Congress and other government officials who are crafting regulations.

Attorney Steven A. Leahy looks over the recent Cryptocurrency lobbying efforts on Today's Tax Talk.

https://tulsaworld.com/lifestyles/technology/crypto-comes-to-washington-will-the-millions-buy-influence/article_b5dac209-1c4e-542f-845c-370e8775df54.html

https://www.msn.com/en-us/money/markets/crypto-industry-wields-its-influence-in-washington-after-pouring-over-2430-million-into-campaigns/ar-AAXmLu2

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Monday May 16, 2022 - The TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION recently conducted an audit and issued a report on May 4, 2022 - A Service-Wide Strategy Is Needed to Address Challenges Limiting Growth in Business Tax Return Electronic Filing.

"This audit was initiated because the IRS’s continued inability to process backlogs of paper-filed tax returns contributed to management’s decision to destroy an estimated 30 million paper-filed information return documents in March 2021. The IRS uses these documents to conduct post-processing compliance matches to identify taxpayers who do not accurately report their income."

The IRS destroyed 30 Million information return documents! These information returns are required documents - taxpayers shoulder the cost and burden of producing these documents in a timely fashion. And the IRS destroyed 30 million.

Don't worry - says the IRS - “There were no negative taxpayer consequences as a result of this action,” “Taxpayers or payers have not been and will not be subject to penalties resulting from this action.”

So, it is important that information returns are filed - and information returns should be expanded - but, if they are destroyed, there are no consequences.

Attorney Steven A. Leahy reviews this latest TIGFTA report today on Today's Tax Talk.

https://www.fool.com/the-ascent/taxes/articles/irs-destroyed-30-million-paper-tax-documents-due-to-backlog/

https://www.cnbc.com/2022/05/13/joe-biden-asked-to-replace-irs-chief-charles-rettig-over-tax-document-destruction.html

https://www.accountingtoday.com/news/irs-blasted-for-destroying-millions-of-information-returns-due-to-backlog

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Thursday May 5, 2022 - Paper is the IRS's Kryptonite. So says Erin Collins the IRS National Taxpayer Advocate. IRS Commissioner Chuck Rettig told the Senate Appropriation Committee’s subcommittee on financial services and general government that the agency is “going into the direction of being able to automate paper returns.”

The IRS Requested funding in 2013 to convert to a digital scanning system - as many states did some years ago. But the Commissioner said “If we were asking for it in 2013, we are 10 years essentially, technology-wise, beyond that,”

Rettig said scanning and digitization technology would help the agency reduce its backlog and improve efficiency, but probably wouldn’t result in workforce cost savings.

According to Subcommittee Ranking Member Sen. Cindy Hyde-Smith (R-Miss.) the IRS received more than $3 billion in supplemental COVID-19 funding since 2020, and more than $1 billion remains available.

Attorney Steven A. Leahy goes over the IRS digitalization plan on Today's Tax Talk.

https://federalnewsnetwork.com/it-modernization/2022/05/irs-looks-to-vendors-for-scanning-technology-to-tackle-its-paper-backlog/

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Wednesday May 4, 2022 - Last year the IRS signed an $86 million contract with identity verification provider ID.me to provide biometric identity verification services. As soon as the deal was announced, there was an outcry - and the IRS seemed to backtrack.

Yesterday IRS Commissioner Charles Rettig told a subcommittee of the Senate Appropriations Committee that the taxpayer access to the online IRS depends on ."identity proofing." Something the current system just isn't good at.

It appears from all the news, the IRS is backtracking again - going back to ID.me and biometric data of taxpayers.

The public - along with many members of Congress - loudly objected to the invasion of privacy necessary to access their own records. Now, that the roar has quieted, the IRS is back at it, pushing ID.me on the unwary public.

Attorney Steven A. Leahy revisits the IRS ID.me controversy on this episode of Today's Tax Talk

https://fcw.com/digital-government/2022/05/irs-leader-explains-why-irs-went-idme/366516/

https://venturebeat.com/2022/04/15/the-irs-id-me-debacle-a-teaching-moment-for-tech/

https://www.reuters.com/technology/identity-check-contractor-idme-fires-dozens-fraud-team-congress-probes-2022-04-26/

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Tuesday May 3, 2022 - Non-Fungible Tokens (NFT) are the talk of the town. But, what is an NFT exactly. An NFT is a digital asset that represents real-world objects. The NFT may be art, music, in-game items or videos.

The value of NFTs come from their exclusivity, or "digital scarcity." Digital copies may be infinite. But, there is only one "original." The NFT contains built-in authentication, which serves as proof of ownership.

Attorney Steven A. Leahy covers the NFT story so you can understand what hype is all about. .

https://www.forbes.com/advisor/investing/cryptocurrency/nft-non-fungible-token/

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Thursday April 28, 2022 - Last March, right around the time Congress enacted the American Rescue Plan Act with its hidden Cash App provisions, the United States House of Representatives passed the Protect the Right To Organize Act (PRO Act) on a 225 -206 vote.

The Pro Act purportedly "strengthen workers' rights to strike for better wages and working conditions, strengthen safeguards to ensure that workers can hold fair union elections and allow the National Labor Relations Board to fine bosses who violate workers' rights."

What was not advertised is the PRO Act's impact on the tax obligations 1099 "Gig" workers. A recent study by Americans for Tax Reform, the Tholos Foundation and Beacon Hill Institute, they report that the PRO Act is a massive tax hike on millions of Americans.

Attorney Steven A. Leahy examines this study and the PRO Act.

https://thehill.com/opinion/finance/3467470-bidens-pro-act-is-a-covert-tax-hike-on-7-7-million-americans/?rl=1

https://www.nbcnews.com/politics/congress/house-passes-protect-right-organize-act-225-206-sends-bill-n1260312

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Wednesday April 27, 2022 - We have been warning our viewers that news stores calling for more funding for the IRS was right around the corner. So it begins.

Did you know the government cannot function without funding? America could not be America without the IRS. Therefore, the logic goes, we need to double the size of the IRS - now.

Never mind the IRS abuses. Never mind our government spends money it does not have. Never mind the average taxpayer is already paying out the nose. No. we should ignore all of that and give the IRS all the money it asks for.

I often wonder, "What free people would create an organization like the IRS?" Yes, government needs money to function. But funding an organization granted immense powers over the citizenry is bad enough. But, DOUBLING ITS SIZE! would be insanity.

Attorney Steven A. Leahy offers his opinion of the news dominating the media - Should we double the size of the IRS?

https://www.deseret.com/2022/4/26/23042916/irs-internal-revenue-service-funding-could-be-family-friendly-policy-build-back-better-plan-biden

https://brooklyneagle.com/articles/2022/04/26/the-irs-is-in-desperate-need-of-money-and-staff/

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Tuesday April 26, 2022 - The future is near. Nearer than we think. Advances in Blockchain technology - and its integration in the Internet are about to change the way we live and work, and how we interact with others.

The emergence of Web 3.0 - using Blockchain technology - promises to take control of private data away from the Big Tech companies and place it in the hands of End users, who directly manage and control their own data and information.

To get to Web 3.0 the Blockchain has some growing to do. Remember, the Blockchain is more than Bitcoin, Ethereum or any single cryptocurrency - layer 1. layer 2 is a collective term used to describe blockchain scaling solutions. These solutions are built on top of the layer 1 blockchain and help improve the network's scalability and transaction processing speed.

Attorney Steven A. Leahy reports on the exciting world of Blockchain, Internet and the Future.

https://www.infoworld.com/article/3657635/why-blockchain-is-the-future-of-the-internet.html

https://www.cnbctv18.com/cryptocurrency/what-is-a-layer-2-blockchain-13267932.htm

https://www.inc.com/howard-tullman/how-blockchain-thretens-uber.html

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Monday April 2, 2022 - The IRS has an image problem. They also have a messaging problem. If only the IRS could let the citizens know how important they are to democracy, everything would be right as rain. After all, $14 Billion Dollars only goes so far.

As we reported last week, the IRS is on a mission to get more funding, and they need the public to help. Without public support their mission will fail. To that end, IRS Commissioner Charles Rettig appeared before the members of the House Oversight and Reform Committee last Thursday..

So, while the phones go unanswered, refunds go unpaid, and returns go unprocessed, the IRS is focusing on fixing public perception of the agency. Because that is where the real problem arises.

Attorney Steven A. Leahy focuses on the perception of the perception of the IRS on Today's Tax Talk.

https://www.journalofaccountancy.com/news/2022/apr/irs-funding-technology-assessed-house-hearing.html

https://www.washingtonpost.com/politics/2022/04/22/irs-underfunded-messaging-republicans-democrats/

https://news.bloomberglaw.com/daily-tax-report/trust-still-broken-at-irs-leaving-rettig-in-messaging-muddle

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Thursday April 21, 2022 - The Biden Build Back Better Plan is still being pushed by some in Congress. You can predict, right after Tax Day, 2 things: First, the IRS will ask for more money to preform their duties (we covered that yesterday). Second, we should give the IRS more power to make filing easier.

One can find a plethora of stories detailing how cheap it is in other countries to prepare taxes. "In Sweden, you get a text message," "In Croatia it takes five minutes." The one element these stories leave out - is government control. If the government controls every aspect of citizens lives and has these details readily available, the government can make these decisions for the citizens.

It may be cheaper - out of pocket for taxpayers - the real cost is much more. There is an old saying - if you want to make something really expensive - make it FREE.

Attorney Steven A. Leahy discusses these issues on Today's Tax Talk.

https://thehill.com/opinion/finance/3274430-the-irs-is-in-no-position-to-do-your-taxes/

https://techcrunch.com/2022/04/21/a16z-debuts-new-crypto-research-team-led-by-columbia-stanford-researchers/

https://www.bloomberg.com/news/articles/2022-04-21/crypto-billionaire-rankles-wall-street-with-futures-trading-plan

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Wednesday April 20, 2022 - It is now common knowledge that the IRS is woefully understaffed and underfunded. In fact, Natasha Sarin, the Treasury's counselor for tax policy and implementation asserted "chronic underfunding [] has starved the IRS of the tools it needs to serve the American people."

Is that right? Has the IRS been starved of resources? Should the American public agree to double the size of the agency, as President Biden has asked? Would doubling the size of the IRS solve all of our budget problems?

Attorney Steven A. Leahy considers these questions, and more, on Today's Tax Talk.

https://www.npr.org/2022/04/18/1093380881/on-tax-day-the-treasury-department-urges-for-more-funding-to-the-irs

https://www.businessinsider.com/americans-get-do-taxes-quickly-for-free-irs-funded-treasury-2022-4

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Monday April 18, 2022 - Well, it's here, Tax Day 2022. Remember, Emancipation Day kicked the filing deadline from the normal April 15th date.

The IRS Commissioner, Charles P. Rettig, took the opportunity in an Opinion piece in NewsWeek to write "[o]n behalf of the employees of the Internal Revenue Service (IRS), I want to thank everyone for taking the time to file and pay their taxes. So, taxpayers have that.

The IRS also took this solemn day to "Plea for More I.R.S. Funding, according the the New York Times. They never miss an opportunity to ask for more money - hat in hand, the IRS needs more tax dollars because the "I.R.S. remained bogged down by antiquated technology and thin resources."

Thin resources - $14 Billion budget last year - and the IRS could only manage to answer 1 in 9 phone calls. $14 Billion doesn't go as far as it once did. Inflation and all.

The IRS ask is $80 Billion over 10 years - to hire 80,000 more employees - more than doubling the current number of 75,773. but, not to worry - they will only target the ultra wealthy. Right?

Attorney Steven A. Leahy wraps up Tax Day with these, and other, tax stories.

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Thursday April 14, 2022 - Tax Season is coming to a close. Your tax return must be filed (or postmarked) by April 18, 2022. Every year, a large portion of taxpayers ask for an extension.

Here are some things you should know about an IRS extension. First, extensions are automatic, as long as you file a request with the IRS before the deadline. Next, even you get an extension, the extension is only an extension of time to file the return - not to pay any tax that is due.

That begs the question: how do I know how much to pay the IRS if my return hasn't been completed? The answer is - you won't know. But, you can estimate. And you should estimate on the high side if you want to avoid any penalty. If you overpay you will receive a refund - like most Americans.

Attorney Steven A. Leahy reviews tax return extensions AND what you should know about them.

https://www.cbsnews.com/news/tax-extension-file-how-to-2022-04-14/

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Tuesday April 12, 2022 - Federal Regulators, from most every agency, are looking into regulating all things Crypto. The Biden Administration recently issue an Executive Order - directing them to do do. But, here is the thing about Federal Regulations - they take a VERY long time to implement.

The Crypto industry moves quickly. They don't have time to wait for the Federal Government to, first educate themselves about the nuances of Crypto, then draft meaningful regulations, get those regulations passed, and finally to apply the regulations.

So, the Crypto industry is taking a State by State approach to get the laws they need enacted.

Attorney Steven A. Leahy reveals this strategy with you on Today's Tax Talk.

https://www.nytimes.com/2022/04/10/us/politics/crypto-industry-states-legislation.html

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Monday April 11, 2022 - The Governor of Minnesota, Tom Waltz, issues 3 Executive Orders imposing and modifying a moratorium on residential evictions in the state. A property owner of rental units in Minnesota objected and filed an action in District Court, contending the Executive Orders violated their rights protected under the contract clause, the takings clause, the due process clauses, and the First Amendment to the U.S. Constitution as well as state law.

The District Court dismissed the case - on all three grounds and the property owner appealed to the Eighth Circuit Court. On April 5, a unanimous panel of the US Court of Appeals for the Eighth Circuit ruled that a Minnesota state eviction moratorium likely qualifies as a taking of private property requiring compensation under the Takings Clause of the Fifth Amendment.

Attorney Steven A. Leahy reviews this case for its important implications to private property rights.

https://reason.com/volokh/2022/04/09/eighth-circuit-rules-eviction-moratoria-are-likely-to-be-takings-requiring-compensation-under-the-fifth-amendment/

https://news.bloomberglaw.com/coronavirus/minnesota-landlord-gets-covid-eviction-moratorium-suit-revived

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Thursday April 7, 2022 - Today, IRS Commissioner Charles Rettig said "The IRS could wipe out its massive backlog of returns by the end of the year." To do that, the IRS has revealed a Surge plan and a new hiring plan that would ad another 10,000 employees.

The IRS Commissioner also revealed "“53% of the employees are in a full-time telework capacity. The rest of the employees either have a blended capacity or they are onsite.”

The good news? Rittig told the committee "We are currently running around 19 to 20 percent level of service.” That's up from 1 in 9 calls being answered.

Attorney Steven A. Leahy reviews Commissioner Rittig's testimony before the House Ways and Means committee.

https://www.cbsnews.com/news/charles-rettig-irs-resolve-backlog-2022/

https://www.atr.org/irs-picks-up-the-phone-only-19-to-20-percent-of-the-time/

https://www.atr.org/irs-chief-53-of-agents-work-from-home-full-time/

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Wednesday April 6, 2022 - It's tax time and the battle is on! COVID created a whole class of employees who work in one state (where they live) for a company that has a head quarters in another state. The employee never goes to the company's state - but the state, where they never go, wants to collect taxes from them.

This is a VERY common question. I answered that question twice today. The answer is much more complicated than you would expect. In fact, New Hampshire brought a law suit against Massachusetts to stop Massachusetts from taxing New Hampshire residents. Last summer, the United States Supreme Court refused the suit to move forward.

So, where does that leave the employee? Well, that depends on where you live - and where your employer is located.

Attorney Steven A. Leahy reviews the court battle and the implications of this problem to workers.

https://www.bostonherald.com/2020/12/25/14-states-side-with-new-hampshire-in-tax-suit-against-massachusetts/

https://www.dgccpa.com/perspectives/new-hampshire-v-massachusetts-taxation-of-remote-workers-case-will-not-be-heard-1425

https://boston.cbslocal.com/2021/06/28/massachusetts-new-hampshire-income-tax-remote-workers-supreme-court-lawsuit/

https://www.picnictax.com/blog/multi-state-taxes/

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Wednesday March 30, 2022 - Did you know that the IRS will confiscate your tax refund if you don't file your tax return? Actually, they will hold it for three years from the date the tax return was due.

This year the IRS reports almost 1.5 million taxpayers have not filed their 2018 tax returns - worth about $1.5 BILLION in unclaimed refunds. Half of the missing refunds from 2018 are more than $813.

You must file be April 18, 2022 (April 19 if you live in Massachusetts or Maine) - unless you filed for an extension for that tax year. Then the due date for your return was October 15, 2019 and you won't lose the refund until October 2022.

Attorney Steven A. Leahy explains the details of this little know tax quirk.

https://www.msn.com/en-us/money/taxes/taxes-time-is-running-out-to-claim-old-2018-tax-refunds/ar-AAVAHcH

https://nationalinterest.org/blog/politics/missing-tax-refund-2018-you-only-have-weeks-left-collect-201532

https://www.msn.com/en-us/money/taxes/dollar15-billion-in-refunds-attached-to-unfiled-2018-tax-returns-available-until-april-18/ar-AAVABUn

https://www.ky3.com/2022/03/25/irs-15b-available-tax-refunds-2018-window-closing-those-file/

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Tuesday March 29, 2022 - We have touted the Blockchain and Cryptocurrency as the future in this space for some time. The promise of Blockchain as to tool to cut out the middleman, reduce transactions costs, provide transparency - and privacy. Well, not everyone is on the Blockchain bandwagon.

Recently, a member of the Federal Reserve Board of Governors, Christopher Waller, said blockchain technology is “totally overrated,”

Speaking about cryptocurrency he said “My view is these things are just electronic gold. They’re forms of storage carrying wealth across time. Look at art, look at baseball cards. Look at all of this stuff that’s intrinsically useless that people pay a lot of money and hold on to because they think they can sell it later and get their money back.”

The United States Government want to move towards a Central Bank Digital Currency (CBDC), a digital token without using Blockchain,

Attorney Steven A. Leahy reviews the other side of the Blockchain debate.

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Monday March 28, 2022 - You may have heard about the BIG news at the Oscar's last night. That's right the "Everyone Wins" gift bags were filled with gifts worth a total of $137,000.00!! And, as it turns out, those gifts are taxable to the recipient.

With most every Hollywood "Star" in the 50% tax bracket, that means that each actor/actress who accepts the gifts are on the hook for half the value.

Now, some of those eligible did not accept the gift bag. And, as it turns out, no one is taxed on all the gifts, because no one redeems all the gifts.

Attorney Steven A. Leahy explains why this tax may matter to mere mortals.

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Wednesday March 23, 2022 - Everyone knows that tax day is April 15th. Our tax returns are due on April 15th no matter what. Or are they.

COVID caused a disruption. In 2021 the IRS granted an extra month - the returns were due May 15, 2021. And, remember, 2020? Those returns were not due until July 15th.

There are other reasons why Tax Day may fall on another day. For example, if the 15th falls on a Saturday, Sunday or Holiday - the date gets pushed to the nearest day that is not a Saturday, Sunday, or Holiday.

What holiday is in April? You may ask. Well, some areas of the Country have regional holidays that may push Tax Day to another date, either for that region, or the entire country.

Attorney Steven A. Leahy explains - When is Tax Day this year?

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Tuesday March 23, 2022 - NFTs have gone mainstream - but the IRS has not yet come up with guidelines on how they should be taxed - Capital Gains, Income, dividends, or collectibles?

“The digital economy is rapidly evolving, but our tax code is lagging behind. Currently, the burden to report and calculate gains on virtual currency transactions falls on the consumer,” DelBene said in a statement to POLITICO. “This includes purchasing NFTs.”

“While the IRS is aware of and monitors developments with digital assets, the IRS has not issued specific guidance on NFTs,” an agency spokesman said.

Attorney Steven A. Leahy reviews taxing NFTs, along with Cryptocurrency and other blockchain assets.

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Monday March 21, 2022 - Steve Harvey, the popular “Family Feud” host, told a Podcast audience recently that he owed the IRS $22 Million in 2008. Then he worked for 4 years and paid $650,000 PER MONTH to pay the IRS in full.

Steve Harvey's problems stem from outright theft at the hands of his accountant. Mr. Harvey explained how his account prepared his tax returns, took his tax payments, then did not file the returns and took the tax payments for himself.

All this came as a big surprise to Mr. Harvey - and came to light after his accountant died.

Attorney Steven A. Leahy explains how Installment Agreements work for higher income taxpayers.

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Thursday March 17, 2022 - Nina Olson, former IRS National Taxpayer Advocate from 2001 to 2019, describes the current problems at the IRS as the worst she’s ever seen. This is the second year in a row that the IRS entered the year with a backlog of millions of not yet processed returns and pieces of correspondence.

Internal Revenue Service Commissioner Charles Rettig appeared before The House Ways and Means Oversight Subcommittee today regarding how the IRS will spend the additional $675 Million approved by Congress recently.

The Commissioner said “Taxpayer service remains the most significant IRS priority, and we have implemented many new, innovative strategies in an effort to improve our overall level of service and processing of our unprecedented current and projected inventories,”

Of course the Commissioner believes "the $80 billion proposal under consideration by you and your colleagues would help us deliver meaningful services to taxpayers, conduct critical enforcement initiatives and support long-term modernization efforts to improve both service and compliance for the nation,”

Attorney Steven A. Leahy addresses the IRS promise to increase customer support with increased staff - and solve the backlog problem by the end of the year. Is all of that doable?

https://www.accountingtoday.com/news/irs-plans-to-improve-taxpayer-service-with-budget-increase

https://www.forbes.com/sites/janetnovack/2022/03/16/the-mess-at-the-irs/?sh=e75746f7657d

https://www.msn.com/en-us/money/personalfinance/where-e2-80-99s-your-refund-veteran-taxpayer-advocate-offers-tips-on-dealing-with-the-mess-at-the-irs/ar-AAV8G9A

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Tuesday March 15, 2022 - Security Tokens are all the rage Will security tokens transform equity just as bitcoin has transformed currency?

Security Tokens give the owner a direct, liquid economic interest and the expedited delivery of proceeds from a specific project. Because every type of ownership can be tokenized, the sky is the limit.

The market for security tokens took off in 2021 - and many expect an unprecedented acceleration in 2022.

Attorney Steven A. Leahy examines all the hype and explains exactly what a security token is.

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Monday March 14, 2022 - Bipartisan group of lawmakers pushes IRS for answers on ‘numerous problems’ facing taxpayers. From unprocessed tax returns to failure to answer the phones, the IRS has an unprecedented backlog.

Representatives, as well as Senators, have sent letters to Internal Revenue Service Commissioner, Charles Rettig.

“We remain concerned that the IRS does not have a comprehensive plan to remedy the numerous problems affecting taxpayers, despite the fact that this filing season is already well underway,” the members wrote.

Attorney Steven A. Leahy looks into the latest developments .

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Thursday March 10, 2022 - Buried in the $1.5 trillion omnibus spending package is a 6 percent raise for the IRS - it isn't the 80 Billion in 10 year package they were looking for, but it will have to do - for now.

We have reported on IRS Surge I and IRS Surge II designed to tackle the huge backlog. The new money will be used to hire 5000 new IRS employees this year. And another 5000 after that.

The IRS claims its aggressive plan will clear the backlog by the end of 2022.

Attorney Steven A. Leahy has something to say about this new plan.

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Wednesday March 9, 2022 - Not all Crypto news happens on Tuesday. Today was such a day. President Joe Biden announced some weeks ago that an Executive Order was coming concerning Cryptocurrency. Today it arrived.

The EO focuses on 6 key areas - consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion and responsible innovation.

The administration is also interested in creating a Stablecoin, a digital version of the dollar.

Attorney Steven A. Leahy reports on the Whitehouse FACT SHEET: "President Biden to Sign Executive Order on Ensuring Responsible Development of Digital Assets:" Which "Outlines First Whole-of-Government Strategy to Protect Consumers, Financial Stability, National Security, and Address Climate Risks."

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Tuesday March 8, 2022 - Cryptocurrency was designed to be independent of any organized market - decentralized is the promise. As Cryptocurrency grew, so too, did Government intervention.

The IRS has taken the lead role - ostensibly to reduce the tax-gap, protect consumers and prevent tax cheating. The Biden Administration recently announced the President's delivery of an Executive Order on Cryptocurrency.

The order is expected to outline the actions government agencies should take to develop policies and regulations on digital currencies. The State Department will be directed to ensure that American cryptocurrency laws are aligned with those of U.S. allies.

Attorney Steven A. Leahy reviews the tax implications of holding, buying, selling, trading, or receiving cryptocurrency - and Non Fungible Tokens - this tax season.

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Monday March 7, 2022 - Remember Obama Care (Affordable Care Act)? There was a provision within the Obama Care Act which would have required businesses to send 1099 forms for all purchases of goods and services over $600 annually.

That was the part of the Bill that we needed to pass in order to find out what was in it. When Americans found out that this provision was in the Act, there was an immediate movement to repeal that reporting requirement.

The expanded 1099 requirement was not set to go into affect until 2012. But, in 2011 - before implementation - the President Obama signed a law that removes the expanded “1099” reporting requirement from the Affordable Care Act. Saying, "This is a big win for small businesses."

Now, many are discovering a similar provision tucked in the American Rescue Plan. A plan promoted to rescue the American workers from the pandemic. The "Venmo Reporting Rule" requires all taxpayers who receive more than $600 in a cash app to receive a 1099K - which is also reported to the IRS.

The rule doesn't change the income reporting requirements - just added mountains of paperwork to the average taxpayer's tax return..

Recently, US Senators have introduced the SNOOP Act. An acronym for "Stop the Nosy Obsession with Online Payments."

Attorney Steven A. Leahy reminds taxpayers of their right to object and supports the SNOOP act. So, should you!

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Thursday March 3, 2022 - My office is getting lots of calls about passports. My clients (or soon to be clients) are receiving Notice CP508C - Notice of Certification of your seriously delinquent federal tax debt to the State Department. And they are rightfully, concerned.

Attorney Leahy "What is going on here? " is the question they ask.

Back in 2015 the Fixing America’s Surface Transportation (FAST) Act, became law, The FAST Act includes a provision requiring the IRS to notify the U.S. Department of State if a certification is made that an individual has a seriously delinquent tax debt.

It took several years for the IRS to rev up the program - and in 2019 the IRS notified more than 400,000 taxpayers that their passports were at risk.

Attorney Steven A. Leahy reports on Notice CP508C and what to do if you get one.

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Wednesday March 2, 2022 - Most of my clients run a small business. And small business owners generally are required to pay the IRS an estimated tax each quarter, because, the United States income tax system is a pay-as-you-go tax system, which means that you must pay income tax as you earn or receive your income during the year..

In my experience, many don't pay quarterly and this leads to an underpayment of estimated tax penalty.

The IRS wants to stop referring this as a penalty - because, technically, the IRS simply charges you for the interest on the payments you failed to make. Still sounds like a penalty to me.

The Taxpayer Advocate wants to "Recharacterize the penalty for failure to pay sufficient estimated tax as an interest charge." She thinks calling it a penalty is bad for “tax morale.” And bad "tax morale" has an impact on tax compliance.

Attorney Steven A. Leahy explains the Penalty for Underpayment of Estimated Tax on Today's Tax Talk.

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Tuesday March 1, 2022 - (Crypto Tuesday) Blockchain has been around for some time now, since at least 2008 - but most everyday we learn of new firsts.

In June 2021 El Salvador become the first county to accept Bitcoin as legal tender.

In October 2015, the first NFT project, Etheria, was launched and demonstrated at DEVCON 1.

In 2021 the first NFT “Quantum” to sell for more than $1 million.

We could go on and on...Every day there seems to be a new "First."

Attorney Steven A. Leahy reviews the Blockchain news. The first NFT vending machine, Colorado, the first state to accept cryptocurrency for tax payments, Ukraine the first country under siege to promote cryptocurrency donations, Russia, the first country avoiding sanctions with cryptocurrency. Lots of firsts

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Monday February 28, 2022 - The IRS faced the “most challenging year taxpayers and tax professionals have ever experienced,” in 2021. This according to the National Taxpayer Advocate 2021 Annual Report to Congress. In that report,

The Taxpayer Advocate, Erin Collins states “I am deeply concerned about the upcoming [2022] filing season, . .[p]aper is the IRS’ Kryptonite, and the agency is still buried in it.” She concluded, "The IRS is in Crisis."

We have covered much of this crisis in this space since the beginning of the year and the beginning of the 2022 tax filing season on January 24, 2022. We have reported on unfinished 2021 returns, taxpayer notices sent in error, refunds that go unpaid, the phone calls that go unanswered.

Attorney Steven A. Leahy surveys the landscape and concludes, throwing more money at the IRS is not the answer.

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Thursday February 24, 2022 - 1099 employees are not employees at all. They are independent contractors - separate companies. Many who take up 1099 status do not understand this.

1099 independent contactors are responsible for their own taxes - AND contributions to Social Security and Medicare. So, when they collect payments, much of those payments actually should go to the federal government. Unfortunately, Americans are conditioned to spend their income and collect a tax refund from the IRS each tax season.

1099 Independent contractors are required to make payments to the IRS quarterly and pay their self employment taxes. So the payments they collect are not all theirs.

Attorney Steven A. Leahy talks about important information all 1099 company owners should know.

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Wednesday February 23, 2022 - We focus on Blockchain Technology, including cryptocurrency, Non Fungible Tokens (NFT), & Decentralized Autonomous Organizations (DAO) every Tuesday in this space - we call it Crypto Tuesday.

Every once in a while a Cryptocurrency and IRS story pops up on a day not Tuesday. A story so relevant we don't want to wait until next Tuesday to cover.

Such is the Story today in Forbes "How The IRS Is Looking For Its Share Of Cryptocurrency And NFT Growth" by Lynn Mucenski Keck. The mix of blockchain technology and the IRS reaction to these assets is of the utmost importance in this tax season.

There is also an important IRS story following up on the ID.me controversy. The IRS announced they were scrapping the facial recognition requirement. As of today, the requirement for a selfie and a government document still are in place. The IRS now says they will "transition away" for the biometric requirement.

Attorney Steven A. Leahy reviews these stories and shares his reaction.

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Tuesday February 22, 2022 - What better time to discuss how cryptocurrency is taxed then tax season - before there is a problem. While we have talked about taxing crypto many times - this little refresher won't hurt.

First, remember, cryptocurrency is not treated like fiat currency (government issued currency) - it's treated like property; like stocks.

Simply buying Crypto is not a taxable event - it becomes a taxable event when you sell, trade or convert it. In addition, if you receive crypto as payment for goods or services it is taxed as income.

Crypto also has some unique features - like mining, hard forks, or air drops. How do you handle those on your tax return?

Attorney Steven A. Leahy reviews the Crypto tax rules, and what you need to know this tax season.

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Monday February 21, 2022 - The Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA) provided over 11.7 million loans totaling nearly $800 billion in relief to over 8.5 million small businesses.

The plan was to forgive these loans. A borrower was to apply for forgiveness once all loan proceeds for which the borrower requested forgiveness were used. Then they were to apply for forgiveness any time up to the maturity date of the loan.

If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Today, the SBA announced that there are still unforgiven PPP Loans to Small Business Totaling $28 Billion. These loans may still be forgiven any time up to the maturity date of the loan. If small businesses do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and they will be required to start making loan payments to their PPP lender.

Attorney Steven A. Leahy summarizes the latest about the Paycheck Protection Program.

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Thursday February 17, 2022 - The Internal Revenue Service's (IRS) Taxpayer Advocate Erin Collins appeared at the Senate Finance Committee hearing today. It was the Taxpayer Advocate's report, issued in January 2022, that characterized the IRS operations as "In Crisis."

In her testimony today, Ms. Collins made several recommendations to help clear the IRS backlog. Remember, it was only 2 weeks ago that the IRS reassigned 1200 employees to create a "Surge Team": A team tasked with cutting into a backlog that included millions of unprocessed returns from last year.

Today, Ms. Collins and the IRS called for a Second "Surge Team." The first wave of reassignments was “an important first step,” Collins said at a Senate hearing. The second wave provides “additional resources on the processing challenges,”

Attorney Steven A. Leahy sheds light on the IRS plans and explains how this move may help taxpayers.

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Wednesday February 16, 2022 - Foreclosure numbers have been at record lows across the country since March 2020. Foreclosure moratoriums have a lot to do with those numbers. Now that the moratoriums have ended, should we start to see a rise in foreclosures?

Well, January 2022 saw a sharp increase - Foreclosure filings such as default notices, scheduled auctions or bank repossessions more than doubled compared with January 2021.- still at lower levels than before the pandemic.

But, we can expect those numbers to continue to rise. An estimated 7.1 million borrowers -- 14% of all mortgage holders -- entered into forbearance during the pandemic. The Federal American Rescue Plan Act, passed in March 2021, provided additional funding for distressed homeowners. Eventually, those funds will dry up.

Attorney Steven A. Leahy takes a look at the Foreclosure numbers across the county.

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Tuesday February 15, 2022 - Her Majesty’s Revenue and Customs office (HMRC) became the first law enforcement body in the United Kingdom (The world??) to seize Non Fungible Tokens during an investigation into a suspected value-added tax (VAT) fraud case.

Three NFTs, representing digital art, were seized, with an estimated value of $1.9 million (USD). “Our first seizure of a Non-Fungible Token serves as a warning to anyone who thinks they can use cryptoassets to hide money from HMRC,” Nick Sharp, HMRC’s deputy director of economic crime, said in a statement Monday.

“We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”

Attorney Steven A. Leahy keeps you up to date on Crypto-assets and the IRS - and other Taxmen.

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Monday February 14, 2022 - The IRS is behind - WAY BEHIND. There are still millions of 2020 returns that are still not processed. So, where are they with my 2022 refund? Here is a schedule provided by the IRS: The list shows the filed-by date on the left, and the tax refund payment date on the right.

February 7 - February 18

February 14 - February 25

February 21 - March 4

February 28 - March 11

March 7 - March 18

March 14 - March 25

March 21 - April 1

March 28 - April 8

April 4 - April 15

April 11 - April 22

April 18 - April 29

April 25 - May 6

May 2 - May 13

May 9 - May 20

May 16 - May 27

May 23 - June 4

The IRS has promised a 21 day turn around time - but only for electronically filed returns. Paper returns will still have delays in processing. How long? No one knows.

Attorney Steven A. Leahy lays out the IRS plans for getting refunds in taxpayers' hands.

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Thursday February 10, 2022 - The Sixteenth Amendment to the United States Constitution states:

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states, and without regard to any census or enumeration."

This year the IRS is driving that point home. Today, IRS Tax Tim 2022-23 warns "Taxpayers must report tip money as income on their tax return." Most of those accepting tips as part of their income already know that tips are taxable - although some don't report all of their tips.

Remember, in IRS Publication 17 (2021) issued December 16, 2021, the IRS reminded us "If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year."

Or the sports fan who receives gifts in return for giving back a record ball - The value of the gifts are taxable.

Attorney Steven A. Leahy reminds taxpayers EVERYTHING is taxable in today's episode.

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Wednesday February 9, 2022 - "The IRS announced today the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return."

Some taxpayers, who have filed their tax returns that remain unprocessed, started receiving collection notices in error. Those notices are sent out automatically. So, when the return is not put into the system, the system assumes the return is unfiled. The unprecedented delays the IRS is experiencing continues to create unforeseen problems.

Which notices are covered? Attorney Steven A. Leahy will examine the effected notices and what you can expect next.

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Tuesday February 8, 2022 - To understand Cryptocurrency, you have to understand blockchain technology. Once you understand blockchain technology, you wil+l also understand Non Fungible Tokens (NFTs), & Decentralized Autonomous Organizations (DAOs).

Today we have two stories - one looks at blockchain and NFT. The second is a story of DAOs and investing. Each story has lessons to understand how blockchain technology is changing the way the world works.

Attorney Steven A. Leahy uses these stories as a learning tool We all should understand these new mechanisms.

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Monday February 7, 2022 - Last week we reported on the IRS plan to use facial recognition software from ID.ne to verify taxpayers identities before they could gain access to their own tax information. We pointed out the potential and real problems with such a plan.

Late last week a bipartisan group of Senators, including Democratic Senator Jeff Merkley of Oregon and Republican Senator Roy Blunt of Missouri wrote in a letter to Commissioner Charles P. Rettig that the IRS has a “poor track record of protecting taxpayer data” and that facial recognition technology, in particular, poses deep concerns around privacy and security—"

The IRS announced the plan 19 days ago saying "by the summer of 2022, the only way to log in to irs.gov will be through ID.me, an online identity verification service that requires applicants to submit copies of bills and identity documents, as well as a live video feed of their faces via a mobile device."

The IRS often comes up with ideas they public thinks is outlandish - go figure.

Attorney Steven A. Leahy will review that latest news about this IRS effort.

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Thursday February 3, 2022 - Beginning this summer, the IRS may require taxpayers to use the ID.me facial recognition software to access sensitive taxpayer information.

The effort to secure all our private data is admirable. However, the intrusiveness of that effort has been overlooked. ID.me is a private company, that will potentially hold millions of the most sensitive data taxpayer's have - their biometric information.

Illinois has the most restrictive laws in America designed to ensure individuals are in control of their own biometric data. The Illinois law prohibits private companies from collecting the data unless they follow strict protocols.

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Wednesday February 2, 2022 - The IRS calls an audit an “Examination of Returns.” The IRS accepts most federal tax returns just as they are filed. Some returns, however, are selected for review. The IRS selects returns for audit by computerized screening, random sample, or by an income document matching program.

Attorney Steven A. Leahy reviews the top reasons taxpayers get audited.

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Tuesday February 1, 2022 -The U.S. Securities and Exchange Commission has added a new stock exchange - one that will contain blockchain technology.

BOX Exchange (BSTX), is the 17th Exchange in the US, The SEC has taken an important step forward today in its approval of BSTX as a national securities exchange facility,” said BSTX CEO Lisa Fall in a statement. “We are eager to continue to work closely with the SEC to launch BSTX as a fully regulated exchange and to help provide capital markets with more modern tools for issuers and investors.”

SEC Chairman Gary Gensler has argued that that nearly all cryptocurrencies qualify as securities and should be regulated by his agency.

Attorney Steven A. Leahy will also "Bust" some of the myths associated with Blockchain technology. Blockchain technology is just starting to take over.

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Monday January 31, 2022 - Charlie Sheen's CPA is getting around. I reviewed the email he sent to me about our December story on this case. Mr. Jager also contacted Forbes about this case.

We will look over the latest Forbes article because the author, Peter Reilly, does a very good job explaining "What Happens When You Don't Pay." He goes on to discuss a Collection Due Process or Equivalent Hearing in general and how that worked into the Charlie Sheen case.

One more item - Mr. Reilly included his "Reilly's Tenth Law Of Tax Planning - Once the tax is more than you can pay, it might not matter how much more."

Mr. Reilly even mentioned Attorney Steven A. Leahy and linked to my previous video on the case https://youtu.be/bBYAUnANic8.

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Thursday January 27, 2022 - Recently we reviewed the National Taxpayer Advocate's Annual Report to Congress. The big news out of that report was the finding - by the Taxpayer Advocate Erin Collins - that the IRS is in "Crisis." Her words, not mine.

In that report, the Taxpayer Advocate lists "THE MOST SERIOUS PROBLEMS ENCOUNTERED BY TAXPAYERS." The report goes on to report "Services Taxpayers Want and the Problems the IRS Faces in Delivering Them."

Attorney Steven A. Leahy goes through the Taxpayer Advocate Report "At a Glance."

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Wednesday January 26, 2022 - We reported on the Charlie Sheen Tax Court case. My reporting was based on a story in Forbes. Charlie Sheen's representative, Steven Jager, contacted me about our original story. I re-watched that episode and it looks like the story was accurate - but not complete.

It seems the story is ongoing - and Mr. Jager pointed me to a new article and his own take on the case. The 2021 case has been remanded (sent back) to appeals. “This case is remanded to respondent’s Office of Appeals for the purpose of affording petitioner an administrative hearing pursuant to I.R.C. section 6320 and/or 6330,” the court wrote in a January 24 order in Sheen v. Commissioner.

Attorney Steven A. Leahy shares his insight into the Charlie Sheen Tax Court Case(s).

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Tuesday January 25, 2022 - The Biden Administration is causing a stir with a recent announcement there is an executive order under development that will "address the economic, regulatory, and national security challenges posed by cryptocurrencies."

The Executive Order will "assign specific roles to a broad spectrum of federal departments and agencies in developing a comprehensive U.S. digital asset strategy." Including looking into establishing a Central Bank Digital Currency (CBDC).

The talk of creating a CBDC vs a Stablecoin. The need to move quickly is emphasized by some. But the surest way to slow the process down is to assign the task to a "broad spectrum of federal departments and agencies."

Attorney Steven A. Leahy will report the latest on this week's edition of Crypto Tuesday.

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Monday January 24, 2022 - The 2021 Tax Filing Season opens today. The IRS begins accepting individual tax returns and sending out refunds. The IRS has already alerted the public - through the National Taxpayer Advocate Erin Collins and Charles P. Rettig, commissioner of the Internal Revenue Service no less.

While the IRS places much of the blame on inadequate funding - the real culprit - in my opinion - is the number of paper returns that resulted from COVID restrictions and the additional responsibilities that came with them.

Attorney Steven A. Leahy looks ahead to the 2022 tax season.

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Thursday January 20, 2022 - The IRS has been promoting IRS.gov for some years, promising a list of online services and ease of use for the taxpayer. Now that there is a record number of online users, the IRS is implementing a new plan "to secure your data." Facial recognition.

Beginning this summer, in order for taxpayers to access their online account they will need to provide a government identification document, a selfie, credit report information, and copies of their bills to a private security company called ID.me.

That's right - not only does the IRS want all your sensitive tax information, now they want your biometric information as well. Don't worry - all that data is secure. Or so they say.

Attorney Steven A. Leahy reveals this new IRS scheme on Today' Tax Talk. Won't you join him.

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Wednesday January 19, 2022 - The new Cash App rule is still all over the news. The reason it is still all over the news is because there is much confusion and no one seems to be cutting to the chase and telling the truth.

Attorney Steven A. Leahy has read article after article, researched the IRS website, rules and regulations - and now, does an analysis of the statute - 26 USCS Section 6050W and accompanying IRS regulations.

There is good news - bad news - and ambiguities. The purpose of this rule is to find income people are not reporting. To what level will the IRS rise to collect according to these regulations? The simple answer is - the top level.

At least that is Attorney Leahy's opinion - forged with my experience dealing with the IRS for many years.

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Tuesday January 18, 2022 -After reminiscing about the last year, the new year always turns to look to the future. What does the future hold for Cryptocurrency in particular, and Blockchain in general?

In my view, new technology brings with it the promise for a better, more independent future. I dreamt the Internet would bring an infinite number of participants into the "village square" to discuss issues and collaborate on a better future.

That's not what happened. A few large corporations now dominate the internet and drown out independent voices.

Now, Cryptocurrency and Blockchain technology hold the very same promise as the 1995 internet. What does the future hold.

Attorney Steven A. Leahy looks into that future - find out what he sees.

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Monday January 17, 2022 - Tax Season officially opens January 24, 2022 - and the IRS has launched Free File Program on January 14th. The IRS Free file Program is a partnership between the IRS and tax preparation and filing software firms that provide their brand-name tax filing products for free.

The popular Turbo Tax will not participate in the IRS program this year. Turbo Tax does, however, have a free file option on its website.

“This decision will allow us to focus on further innovating in ways not allowable under the current Free File guidelines and to better serve the complete financial health of all Americans through all of our products and services, in tax preparation and beyond,” Intuit said.

The IRS Free File program is a Public-Private Partnership between the IRS and the Free File Alliance, a coalition of leading tax preparation software companies.

two ways for taxpayers to prepare and file their federal income tax online for free:

Guided Tax Preparation provides free online tax preparation and filing at an IRS partner site. Our partners deliver this service at no cost to qualifying taxpayers. Only taxpayers whose AGI is $73,000 or less qualify for a free Federal tax return using IRS Free File guided tax preparation.

Free File Fillable Forms are electronic federal tax forms, equivalent to a paper 1040 form, you fill out online for free. If you choose this option, you should know how to prepare your own tax return. It is the only IRS Free File option available for taxpayers whose income (AGI) is greater than $73,000.

Tax Attorney Steven A. Leahy reviews this FREE option.

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Thursday January 13, 2022 - In its annual report to Congress the Taxpayer Advocate's office concludes "The IRS is in crisis. The Internal Revenue Code requires the National Taxpayer Advocate to submit an annual report to the House Committee on Ways and Means and the Senate Committee on Finance that includes a summary of the ten most serious problems encountered by taxpayers and makes administrative and legislative recommendations to mitigate those problems.

The Crisis determination is largely related to the delays taxpayer's are facing. Delays in return processing. Delays in refunds. Delays in answer phone calls. Delays in...well, you name it.

Attorney Steven A. Leahy reviews the 10 recommendations included in the report.

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Wednesday January 12, 2022 - I did a report titled "$600 Cash App Reporting" in October 2021, and a second Report in November 2021. In those reports I explained the new cash app rules and the impact it will have on regular Americans.

Recently, I responded to several YouTube comments on the October report, and I realized - Most People Still Don't understand the rules. And, the Government and Media are not helping answer the most common question - What will happen If I use a cash App for private purposes - will I get a 1099K?

Attorney Steven A. Leahy goes to the source - The IRS - to finally ANSWER THAT QUESTION.

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Tuesday January 11, 2022 - 2021 saw a boom in cryptocurrency and other Blockchain assets (NFTs, DAOs) activity by taxpayers who never even heard of these assets before this year. If these taxpayers are not prepared, they could be facing a big tax liability AND audits by the IRS - both things to avoid.

When it comes to Cryptocurrency, the first thing to know is -Crypto is taxed as property - and, therefore, likely creates a taxable event each time it is traded, sold, or used as an exchange of value (think buying something). Because Crypto is considered property, it is imperative that the taxpayer keep good records. Untangling Cryptocurrency transactions can be a daunting exercise.

Non-Fungible Tokens create a whole list of different tax issues. NFTs are likely considered collectibles. And collectibles are treated differently depending on your income level.

Attorney Steven A. Leahy talks about the impact these new issues may have on your tax bill.

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Today, Monday January 10, 2022, the IRS has set the date of January 24, 2022 to officially open tax filing season, 19 days earlier than last year. That's the first day the agency will start accepting and processing 2021 federal tax returns.

The IRS encouraged taxpayers to file electronically with direct deposit to receive their tax refunds as soon as possible. The IRS claims taxpayers should receive their refunds within 21 days of filing their return electronically if they use direct deposit and as long as there are no issues with the return.

Remember, the IRS offers a Free File program. That program will open Jan. 18 for taxpayers who made $73,000 or less in 2021. We will provide additional information on that program soon.

This year, your return is due by April 18, 2022 because Washington D.C. celebrates Emancipation Day on April 16th, can April 16th is a Saturday. Federal employees in Washington D.C. have the day off the closest week day when that happens - Friday April 15, 2022. That pushes the deadline to Monday April 18, 2022.

Attorney Steven A. Leahy will explain all of these dates on Today's Tax Talk.

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The IRS Budget is $14 Billion Plus, for 2022. They propose spending $4.4 Billion Dollars on Information Services and Modernization, shared services and infrastructure. That's a whole lot of money!

The IRS has been Modernizing their IT infrastructure for more than 50 years, and, last year, they answer less than 10% of taxpayer telephone calls during tax season.

Attorney Steven A. Leahy reviews the 2022 IRS Tech Budget.

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Blockchain technology is at the heart of Cryptocurrency. Innovators are using that same technology to crowdfund projects, law suits and even commercials.

Last week we told you about the Decentralized Autonomous Organization (DAO) that raised millions of dollars to purchase a copy of the Constitution. While that effort failed, the idea seems to be catching on.

This week we review stories about funding law suits and even crowdfunding to raise money for a Super Bowl ad. It won't stop there!

Attorney Steven A. Leahy let's you in on the newest trend.

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Hey it's 2022 - Let's start the new year thinking ahead. Too often my clients ask about tax planning after the year is over. The right time for tax planning is at the beginning of the tax year.

This year will be a challenge because Congress may pass tax laws retroactively. They have done it before. But this year is ripe for these changes, given the Biden Build Back Better Bill is still on the horizon.

So, Attorney Steven A. Leahy shares some tax tips for 2022.

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IRS recently issued Publication 17 (2021), Your Federal Income Tax designed to help individual taxpayers prepare their 2021 tax return. Think of it as the Instruction sheet for Form 1040 or 1040 -SR.

The publication covers everything, from the date your tax return is due (April 18, 2022 because of the Emancipation Day holiday in the District of Columbia) to deducting Personal protective equipment (PPE).

Part Two of the publication, Income and Adjustments to Income explains which income is and isn’t taxed and discusses some of the adjustments to income that you can make in figuring your adjusted gross income.

Remember, the Sixteenth Amendment to the Constitution, granted Congress the "power to lay an collect taxes on incomes, from whatever source derived" .Well the IRS spells out some of the of those taxable incomes here.

Attorney Steven A. Leahy demonstrates the awesome power granted to the IRS in this epoxide of "Today's Tax Talk."

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Have you heard of a Decentralized Autonomous Organization (DAO), Non-Fungible Tokens (NFT), or WEB3? If you haven't, listen up.

First Decentralized autonomous organizations (DAOs) are typified by the use of blockchain technology to provide a secure digital ledger to track digital interactions across the internet, hardened against forgery by trusted timestamping and dissemination of a distributed database.

Non-Fungible Tokens (NFT) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.

Finally, WEB3, also known as Web 3.0, is an idea for a new iteration of the World Wide Web that incorporates decentralization based on blockchains. It is often contrasted with Web 2.0, wherein data and content are centralized in a small group of companies and Web 1.0. Web 1.0 refers roughly to the period from 1991 to 2004, where most websites were static webpages, and the vast majority of users were consumers, not producers, of content.

In this episode of Today's Tax Talk, Attorney Steven A. Leahy reviews the latest news in Crypto and blockchain..

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We don't have to pass the Biden's Build Back Better Bill to find out what is in it. Now that the Congress has recessed, Americans can look into the bill to find out what's in it - the way it is supposed to be.

One of the proposals floating in Build Back Better is to allow the IRS to prepare all American's tax returns, FOR FREE. An Elizabeth Warren idea.

There are at least three reasons to oppose this idea. First, it is an obvious conflict of interest. The IRS mission is to collect taxes from Americans - would the IRS seek to minimize your tax obligation.

Second, do we really want to give the IRS more of our personal information? Third, related to the second reason, can the IRS protect that additional information?

Attorney Steven A. Leahy talks about this recent proposal. Do you have unfiled tax returns.

IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that this written advice is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.

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Biden's Build Back Better Plan has been delayed - but not killed! the US Chamber of Commerce, Republican Senators, and Editorial Boards across the Nation are still strongly opposing making the IRS bigger and more powerful than ever.

They oppose the $80 billion increase in IRS funding and the 87,000 additional employees proposed by the Bill. The best step, say many, would be to eliminate the IRS altogether, pointing to the history of abuse and targeting for politics rather than policy.

The Bank Reporting scheme is also not yet dead. So, Senators Carpo and Capito, among others, continue to speak out about the plan.

Attorney Steven A. Leahy looks at the reports opposing making the IRS Bigger and More Powerful than ever before.

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This week on Crypto Tuesday we begin, like we always do, with a review of the markets. We all know the rollercoaster ride cyrpto can be. Where are we this week?

Next, while Cryptocurrency is not new, many are hearing the "Crypto Lingo" for the first time. We review and comment on an article from Kim Komando in which she lists "10 cryptocurrency terms people use every day." How many terms do you know?

Finally, Attorney Steven A. Leahy looks at the progress of El Salvador and their Bitcoin experiment.

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The TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION (TIGTA) conducts a yearly audit to "assess the adequacy and security of the IRS’s information technology."

Problems were reported in the IRS’s handling of the privacy of taxpayer data, access controls, system environment security, information system boundary components, network monitoring and audit logs, disaster recovery, roles and responsibilities, and separation of duties, as well as security policies, procedures, and documentation.

Two of five function areas of the IRS’s Cybersecurity Framework were rated “not effective,” namely its ability to identify its cybersecurity risks, and its ability to detect cybersecurity incidents. In both areas, TIGTA said that the IRS had defined policies, procedures and strategies, but that they were not consistently implemented, leaving taxpayer information at risk.

Attorney Steven A. Leahy discusses the report and its impact on taxpayer data.

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Biden's Build Back Better Bill has hit a brick wall in the Senate. After fighting its way through the House last month - passing with the help of 13 "Republicans" - it appeared the Bill would sail through the Senate.

But, with many Senators objecting to Bank Reporting Requirements, others objecting to doubling the size of the IRS and still others objecting to the expanded child credits the demise of the Bill was inevitable.

The objections to other items in the legislation, such as long-term home health care, generous child care subsidies, expanded Medicare benefits, universal prekindergarten and raising the cap on state and local tax deductions never really reached the stage for debate. .

The Senate is said to put the vote off until early next year, or maybe next March. But, according to Senator Graham, the "Bill is Dead Forever."

Attorney Steven A. Leahy reviews the latest news articles about Biden's Build Back Better Bill.

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Biden's Build Back Better Plan proposes a whooping $80 Billion increase to the IRS budget, adding roughly 87,000 new employees. That's nearly doubling the current size of the IRS.

Many in Congress are questioning the wisdom of such a move. Senators Grassly, Capito, & Thune and others have publicly objected to the IRS budget increase. Citing past IRS indiscretions and outright bulling of taxpayers, those Senators have said no to the Build Back Better Plan.

Last week Attorney Leahy talked about the IRS case against Charlie Sheen. This week the IRS publicized their case against the actor Chris Tucker. Make no mistake, there will be additional cases in the news in the coming weeks - just as tax season approaches. The purpose is to scare American Taxpayers to tow the line.

Everyone should pay their fair share in taxes, as dictated by the IRS Code. But, harassing taxpayers and making examples out of some in order to scare overcompliance - which is what happens when taxpayers are frightened about what can happen if they make a mistake - is wrong.

Attorney Steven A. Leahy reviews this matter with his viewers and listeners.

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Charlie Sheen owes the IRS. For tax year 2015 the IRS said Sheen owed nearly $5 million. Sheen claimed he could not pay the full amount. He sought an installment agreement, then an offer-in-compromise. The IRS denied both.

So, in 2018 Sheen took his case to the United States Tax Court. While the case was pending, the IRS claimed Sheen owed additional monies for 2016 and 2018. Sheen combined all the cases and offered $3.1 million to settle the matter. The IRS calculated he could pay 3 or 4 times that amount. The Tax Court agreed with the IRS.

Attorney Steven A. Leahy reviews this case as only a Tax Attorney who helps taxpayers with IRS collection cases can.

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The IRS National Taxpayer Advocate's Office recently held discussions about temporarily shutting down IRS phone lines. The IRS needs to focus on clearing the unprecedented backlog of unfiled returns. Some 5.9 million individual 2021 returns and 2.7 million amended 2021 returns are still unprocessed.

Attorney Steven A. Leahy reveals the disappointing numbers as released by the IRS

In addition, the Taxpayer Advocates Service has stopped accepting cases for those with amended returns. “Under our current procedures, [we do] not accept cases in which we cannot meaningfully expedite or improve case resolution for taxpayers,” it said, and “amended returns fall into this category.” What is a taxpayer to do?

Attorney Steven A. Leahy reveals the numbers the IRS released in their recent report "Review of the 2021 Filing Season."

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Any Cryptocurrency observer knows the Crypto Roller-Coaster can occur at ANY time. It happened again! Bitcoin lost more than 20% OVERNIGHT!

Why is the price Fluctuating? Many different reasons have been presented - the stock market.- new Omicron variant - the Federal Reserve's response to Inflation - Pick your poison.

The BIG winner this week was the new Omicrom, a lesser known Cryptocurrency that took off after the World Health Organization named the newest Coronavirus variant after the Greek letter.

Attorney Steven A. Leahy rides the rollercoaster!

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Under the federal Controlled Substances Act, Marijuana is a “controlled substance.” The United State Supreme Court has held that “no exception in the Controlled Substances Act exists for marijuana that is medically necessary.” Or, for recreational use for that matter.

IRS Code Section 280E “prohibits taxpayers[] from deducting any expense of a trade or business that consists of the trafficking of a controlled substance such as marijuana.” The controlled substance status also makes it difficult or impossible for Cannabis business to get a bank account. Forcing these business to deal in cash.

There have been efforts to ease the prohibition And, with the recent IRS push to track every dollar in and out of every bank account, the Secretary of the United States Treasury Department, Janet Yellen, has voiced her support to change IRS rules to allow Cannabis businesses access the banking system in an effort to "make the IRS job easier."

Attorney Steven A. Leahy reports on the latest IRS related cannabis news.

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The public has objected. The Republicans have objected. 21 Democrat Congressman have objected. Several Democrat Senators have objected. Yet, Janel Yellen, The Secretary of the Department of Treasury is still pushing to have the Bank Reporting provision included in the Build Back Better Plan.

The Bank Reporting requirement would allow the IRS access to individual's bank account "inflows and Outflows." In addition to the $80 billion and 87,000 more tax collectors, the IRS hopes to generate $400 billion of additional tax revenue.

Attorney Steven A. Leahy campaigns against this provision AND The Build Back Better Plan.

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The IRS has made cryptocurrency (or virtual currency as the IRS calls it) a priority. The IRS specifically asked, for the first time, about "virtual currency" on Schedule 1 of the 2019 1040 tax form. In 2020 - that question was moved to page one of the 1040 return.

The early draft of 2021 IRS Tax Form 1040 includes the language "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial of any financial interest in any virtual currency?" directly under your name and address information. So there is no getting around reporting cryptocurrency to the IRS. Remember, IRS Form 1040 is submitted under penalty of perjury!

Attorney Steven A. Leahy - the Crypto Lawyer - reviews what you need to know about cryptocurrency and your taxes.

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The Biden Administration's Build Back Better Plan (BBB) includes a massive increase in the size and scope of the IRS. The plan provides an additional $80 Billion Dollars and 80,000 more "tax cops.." The IRS will use these additional resources to expand IRS Audits on "small businesses and households of modest means."

The Bank Statement Reporting was not included in the house version of the Bill, but is expected to be added on the Senate side. Many Democrats in Congress have come out against that scheme, but there really is no other way to pay for BBB without increasing tax collection from American Taxpayers.

Attorney Steven A. Leahy goes though the latest news on Build Back Better to inform the public on exactly what Congress has in mind. And it isn't good.

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It's Crypto-Tuesday and there a number of big stories in Cryptocurrency News. First, El Salvador is continuing their push to move to the front of Bitcoin economy. You may remember that in September 2021 El Salvador became the first country to declare Bitcoin as it's national currency. Since then they have taken measures to lead the world in assisting Crypto investors.

The latest move is an announcement that El Salvador is building a Bitcoin City. The City will be built at the foot of Conchagua Volcano. The volcano will help El Salvador Mine Bitcoin with green geothermal energy. Overcoming a common complaint that Bitcoin mining uses too much carbon based energy.

The IRS Criminal Investigations unit has seized $3.5 Billion in Cryptocurrency this year and expects to seize a similar sum next year. What is driving those seizures?

Finally, Hillary Clinton fears Cryptocurrency will destabilize country's and the American Dollar as the reserve currency. Everyone is interested in Hillary's Crypto Opinion!

Attorney Steven A. Leahy discussed these important stories on this week's Crypto-Tuesday episode.

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The Build Back Better Act (BBB) sets aside $80 Billion For the IRS. With that increase, the IRS plans on hiring 87.000 new IRS workers to target "wealthy" taxpayers.

However, as Elon Musk points out, there are only 614 billionaires in America. And, “[t]he IRS already has dedicated audit teams for high net worth individuals. The doubling of staff is for everyone else,” Musk warned,

The Administration has already told us not to pay attention to the warned Congressional Budget Office's analysis - "The CBO has previously underestimated the revenues that increased enforcement would raise."

Attorney Steven A. Leahy opines on these important issues on Today's Tax Talk.

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The IRS announced new policies for the Offer In Compromise program. on a recent blog post titled "IRS Initiates New Favorable Offer In Compromise Policies" The National Taxpayer Advocate announced that the offer in compromise refund recoupment process will no longer be applicable for tax periods included on the Form 656.

And second, while refunds may still be offset during the time an OIC is pending, the IRS agrees that taxpayers may seek an OBR during this period.

What does this mean to the average taxpayer in collection? Absolutely nothing. The cold hard facts are - almost no taxpayer gets an Offer in Compromise as a way to settle their IRS Collection Case.

In 2020, the last year statistics are available, the IRS settled 7.4 million IRS Collection Cases. Of those settled cases, only 14,288 offers were accepted. That's right - less than 1/4 of 1% are settled with an Offer in Compromise. And the second change - the offset bypass refund for pending offers - is only available to those "qualifying taxpayers experiencing financial hardship."

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The promise of Cryptocurrency is in the use - or is it in the value. That is the conflict. It is hard to buy something with Crypto that may grow in value the next day. Still the real promise in Crypto, in my mind, has to do with the elimination of the middleman and the efficient transfer of value.

I spoke with Dave Guttman, Chief Growth Officer of CoinFlip about his view on Crypto. You might find that discussion interesting - here is the link to that interview - https://vimeo.com/645310789.

Attorney Steven A. Leahy has an idea where we are going - but nothing is set in stone.

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After all the hand-wringing about the Tax Gap, wealthy tax evaders and Crpto cheats the US Treasury collected a record $283,927,000,000 in total taxes in October, which was the first month of fiscal 2022. However, Federal spending hit $448,983,000,000 in October, which was the second highest ever for the first month of a fiscal year.

Do these numbers demonstrate a need form more money, or a need to cut spending? That is ALWAYS the battel question.

Attorney Steven A. Leahy reviews the latest tax numbers.

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The 2,100-page Infrastructure Bill is full of payoffs for special interests. One of the most egregious examples is the change in the tax law granting trial attorneys to deduct legal fees as they incur them - even though these fees may be reimbursed by their clients at a later date.

The up front fees have never been deductible. These fees have been treated like non-deductible loans to clients since they may eventually get reimbursed at the end of the case when the client settles or wins.

Attorney Steven A. Leahy reveals the new generous for Trial Attorneys hidden in the new law.

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The new infrastructure bill expands the definition of cash to include “digital assets” and includes tax reporting provisions that capture Miners, stakers, lenders, decentralized application and marketplace users, traders, businesses, and individuals into these reporting requirements

The Crypto Industry and many in Government want to :"fix" the legislation by narrowing the definition of “broker” so the Internal Revenue Service can not target crypto miners, developers and others, who don’t have any customers or have access to information needed to comply with tax reporting requirements.

Attorney Steven A. Leahy reviews the new Bill and the impact on the Crypto industry and growth.

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Congress has proposed yet another version of a Tax Bill Today. Although, as Senator Manchin points out, no one really knows what provisions are in any of the versions. Different elements are suggested as a trial balloon and quickly removed - then reinserted.

For example, the Bank Reporting provision has been floated, removed, floated again, then changed, then struck down and now it may be part of the new bill. Like wise, the family leave provisions. Initially, 12 Weeks was proposed, and then quickly eliminated. Only to be family leave reintroduced for 4 weeks.

What's really in the Bill? No one knows. Attorney Steven A. Leahy goes over the latest news to try to bring light to this dark subject.

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There is a current aphorism "COVID changed Everything!" That saying even goes to the IRS. Initially, in March 2020, the IRS shut down all operations: enforcement, collections, mail, phone, and print. These interruptions caused delays and backlogs in IRS’s enforcement caseloads even after operations resumed. The IRS even significantly reduced its efforts to enforce taxpayer compliance.

After the initial shut down, the IRS tried to move to telework - but most IRS operations were not set up for that. The IRS was tied to paper processing -

COVID has caused the IRS to reevaluate its operations. Even looking for ways to expand acceptance of digital signatures on electronic documents.

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The long awaited "President's Working Group on Financial Markets: Report on Stablecoins" was released today. The new report of these U.S. financial authorities has predicable conclusions: REGULATE.

For those who don't know, Stablecoin is a class of cryptocurrencies that use a "stable" reserve asset, like the US Dollar or Gold, to peg their market value.

Today, stablecoins are primarily used in the United States to facilitate trading, lending, or borrowing of other digital assets, predominantly on or through digital asset trading platforms. Proponents believe stablecoins could become widely used by households and businesses as a means of payment. If well-designed and appropriately regulated, stablecoins could support faster, more efficient, and more inclusive payments options. Moreover, the transition to broader use of stablecoins as a means of payment could occur rapidly due to network effects or relationships between stablecoins and existing user bases or platforms.

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With the demise of the bank statement reporting regime sought by the Administration, they have turned their attention to funding. Although, increased funding has been on the agenda from day one. The current ask is for $80 Billion over the next 10 years, a nearly 70% increase from current funding.

The goal, says the administration, is to target wealthy taxpayers with stricter IRS enforcement. "When you are focusing on audits and people see that audits are happening - especially amongst people who are situated similar to them - you have better compliance," said Deputy Treasury Secretary Wally Adeyemo..

"When they see more cops on the beat looking at tax returns, what people will decide is that it's better to pay than to pay the penalty in the end."

In the meantime, a former IRS commissioner is on record as saying "“I think this funding is dramatically in excess of what the IRS needs and could probably effectively use,”

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IRS Bank Reporting has been a hot issue all summer long. Today's Tax Talk has been bringing this issue to the forefront since May 2021, knowing if the public knew of these plans there would be a ground swell of opposition.

In September 2021, because of bank and constituent complaints the Congressional Committee pulled the provision for the Bill, only to have it reinserted days later with a promise to increase the threshold from $600. In mid October Congressional Leaders announced the threshold change to $10,000.00. But it wasn't enough.

At least 100 Banks and other interested parties published opposition and criticism of the entire concept as an invasion of privacy. Senator Joe Manchin voiced his opposition to the provision. Now, 21 Democratic Members of Congress have come out against it.

That should be the end of it. But, is it? Attorney Steven A. Leahy reviews the news stories or this issue. Where do we go from here?

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The Administration looks to upend the Constitution in order to obtain the money necessary to "reshape" America. The Bank Reporting provision may have been defeated. So, the Wealth tax has been introduced as an alternative.

The Constitution appears to stand in the way. The 4th Amendment proclaims "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated." This amendment, I believe, prohibits the administration's Bank Reporting proposal.

The 16th Amendment allows Congress the "power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." The 16th Amendment does not allow the taxation of unrealized value - as that isn't "Income."

Attorney Steven A. Leahy interprets the Constitution in a way the protects American Citizen's privacy, property and dignity.

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The emerging Eth2 virtual currency is making news with its coming upgrades that improve the scalability, security, and sustainability of Ethereum. Those upgrades include moving the consensus mechanism from proof-of-work (PoW). to proof-of-stake (PoS). PoS will drastically reduce the amount of energy necessary for mining blocks.

Ethereum's smart contract capabilities combined with the ease of validation and reduced energy requirements make it the prime candidate to take the role of World Reserve Currency.

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The IRS handed out Child Tax Credits, Stimulus Money, Unemployment refunds and tax refunds to millions of Americans. Now, the IRS has sent out millions of Math Error Letters alerting some taxpayers that the money they received may have to be repaid. If the taxpayer can't pay it right away, they may owe thousands in penalties and interest on top of the repayment amount.

Attorney Steven A. Leahy reports on this new IRS development.

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We reviewed The United States Department of Treasury Fact Sheet yesterday. Today, United States Senator Mike Crapo (R-Idaho) requested details about the "new approach" outlined in that Fact Sheet. According to him - this new approach has never been presented to Congress.

However, "critics" still oppose this new approach. Attorney Steven A. Leahy reviews the ongoing debate about IRS Spying.

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The right to privacy is a fundamental human right in any democratic country.

The United States Treasury Department published a "fact" sheet yesterday titled "Tax Compliance Proposals Will Improve Tax Fairness While Protecting Taxpayer Privacy" in response to the strong opposition to the Biden Bank Reporting Proposal. The "fact: sheet doubles down on the inaccruies and half truths perpetuated by the proposals supporters.

Attorney Steven A. Leahy breaks down the fact sheet into truths we can all understand. Protect our privacy!

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Natasha Sarin, Deputy Assistant Secretary for Economic Policy, published an article last Thursday titled "How Financial Reporting Helps American Workers and Ensures that Top Earners Pay Their Fair Share." The article attempts to justify spying on every single American to "help the IRS determine whether taxpayers with opaque sources of income are meeting their tax obligations."

No where in her article does she explain how this spying would help American Workers, unless we assume the taxes used to "support critical initiatives in the Build Back Better agenda" will ultimately get to the workers. And there is zero evidence that any of these programs will help workers in the long run.

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The American Recue Plan passed in March 2020 requires cash apps like Venmo, PayPal and Zelle to report transactions over $600. Previously, the minimum reporting thresholds was payments that exceed $20,000, AND more than 200 such transactions.

All the "fact" verifiers are misstating the objection. The objection isn't paying a tax - its' the REPORTING. Many taxpayers are going to get caught not reporting - nontaxable income, because they will ignore the notice because the reported transactions are not taxable. But, how will the IRS know the transaction isn't taxable if the taxpayer doesn't qualify it?

Tax prepares and tax resolution companies are going to LOVE this change.

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The Biden Administration has been advocating for the American Families Plan, the American Jobs Plan and the American Rescue Plan. Each of these plans have price tags in the Trillions of dollars.

On this episode of Today's Tax Talk, Attorney Steven A. Leahy looks at the specific proposals in the American Family Plan using the administration's own "Fact" sheets.

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After 4 years of negotiations the Organisation for Economic Cooperation and Development (OECD) set a minimum global tax rate of 15% for big companies and sought to make it harder for them to avoid taxation. The Biden Administration's Treasury Secretary Janet Yellen is pushing for Congress to implement this agreement in the pending Reconciliation Bill.

The trouble? Under our Constitution the Senate must ratify any treaty with a two-thirds majority, or 67 votes. Votes that aren't there. Yellen and the Administration hope to push through these measures by modify existing bilateral tax treaties - that require a bare majority.

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Attorney Steven A. Leahy reviews the Cryptocurrency market using CoinFlip.tech's Market Page.

And reports on El Salvador Experiment. The first country in the world that made Bitcoin its legal tender, now has more citizens with a Chivo Bitcoin wallet than a bank account. In under one month, 46 percent of the population have a Chivo Wallet compared to just 29 percent of Salvadorans with a bank account (as of 2017).

Finally, Attorney Leahy discusses the continued efforts of the US government to regulate Cryptocurrency and Cryptocurrency Markets.

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Cryptocurrency traders have many tax implications. For starters, every sale and purchase of cryptocurrency represents a taxable event. However, there are also tax benefits of trading cryptocurrency. Whether you trade Bitcoin, Atherium, Dogecoin, or any other Cryptocurrency, you should be prepared for the advantages and issues that arise. Be sure to give this episode a listen to learn about the IRS and cryptocurrency.

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In recent months, the IRS has increasingly been talking about decreasing the tax gap. There are a wide range of proposals: Senator Elizabeth Warren has proposed nearly tripling the IRS budget, the IRS is monitoring cryptocurrency transactions, and the IRS now looks like they will collect bank account information to match up to their records with what your bank says! Tax compliance and IRS strategies require a proactive approach, don't get caught off-guard with the changes coming.

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The IRS recently came out and said that any cryptocurrency exchange over $10,000 needs to be reported directly to the IRS. Whether you trade Bitcoin, Ethereum, or even Dogecoin, you need to know what new tax changes mean to you. Whether you are trading, selling, or even exchanging your cryptocurrency for a good (like a Tesla or Mavericks season tickets), you need to be aware of the ramifications.

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Governor Pritzker came out with some additional information about the renter assistance program, which now allows landlords to take action. The program can cover up to 15 months of rental assistance for those impacted by the pandemic. Be sure to give it a listen, there is also information about in-person programming you can attend to get assistance.

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For many business owners who are behind on their taxes, tax day can be a stressful time. Luckily, there are options for those who find themselves in a tough situation. In this episode of "Tax Matters w/ Attorney Steven Leahy," we will be discussing the options people have to get into compliance with the IRS.

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