Today's Tax Talk with Attorney Steven Leahy

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

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

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/

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

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

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/

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

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

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

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/