Today's Tax Talk with Attorney Steven Leahy

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.

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.

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.

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.

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.

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.

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."

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!

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.

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.