Today's Tax Talk with Attorney Steven Leahy

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.

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.

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?

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.

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.

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

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.

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 .

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.

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."