Today's Tax Talk with Attorney Steven Leahy

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.

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/

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/

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

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

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

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/

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/

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

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/