Today's Tax Talk with Attorney Steven Leahy

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/

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

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

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

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

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

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

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

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

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/