Today's Tax Talk with Attorney Steven Leahy

The American Recue Plan passed in March 2020 requires cash apps like Venmo, PayPal and Zelle to report transactions over $600. Previously, the minimum reporting thresholds was payments that exceed $20,000, AND more than 200 such transactions.

All the "fact" verifiers are misstating the objection.  The objection isn't paying a tax - its' the REPORTING.  Many taxpayers are going to get caught not reporting - nontaxable income, because they will ignore the notice because the reported transactions are not taxable.  But, how will the IRS know the transaction isn't taxable if the taxpayer doesn't qualify it?  

Tax prepares and tax resolution companies are going to LOVE this change.

The Biden Administration has been advocating for the American Families Plan, the American Jobs Plan and the American Rescue Plan.  Each of these plans have price tags in the Trillions of dollars.  

On this episode of Today's Tax Talk, Attorney Steven A. Leahy looks at the specific proposals in the American Family Plan using the administration's own "Fact" sheets.

After 4 years of negotiations the Organisation for Economic Cooperation and Development (OECD) set a minimum global tax rate of 15% for big companies and sought to make it harder for them to avoid taxation.  The Biden Administration's Treasury Secretary Janet Yellen is pushing for Congress to implement this agreement in the pending Reconciliation Bill.  

The trouble?  Under our Constitution the Senate must ratify any treaty with a two-thirds majority, or 67 votes. Votes that aren't there.  Yellen and the Administration hope to push through these measures by modify existing bilateral tax treaties - that require a bare majority.

Attorney Steven A. Leahy reviews the Cryptocurrency market using CoinFlip.tech's Market Page.

And reports on El Salvador Experiment.  The first country in the world that made Bitcoin its legal tender, now has more citizens with a Chivo Bitcoin wallet than a bank account.  In under one month, 46 percent of the population have a Chivo Wallet compared to just 29 percent of Salvadorans with a bank account (as of 2017).

Finally, Attorney Leahy discusses the continued efforts of the US government to regulate Cryptocurrency and Cryptocurrency Markets.

Cryptocurrency traders have many tax implications. For starters, every sale and purchase of cryptocurrency represents a taxable event. However, there are also tax benefits of trading cryptocurrency. Whether you trade Bitcoin, Atherium, Dogecoin, or any other Cryptocurrency, you should be prepared for the advantages and issues that arise. Be sure to give this episode a listen to learn about the IRS and cryptocurrency. 

In recent months, the IRS has increasingly been talking about decreasing the tax gap. There are a wide range of proposals: Senator Elizabeth Warren has proposed nearly tripling the IRS budget, the IRS is monitoring cryptocurrency transactions, and the IRS now looks like they will collect bank account information to match up to their records with what your bank says! Tax compliance and IRS strategies require a proactive approach, don't get caught off-guard with the changes coming. 

The IRS recently came out and said that any cryptocurrency exchange over $10,000 needs to be reported directly to the IRS. Whether you trade Bitcoin, Ethereum, or even Dogecoin, you need to know what new tax changes mean to you. Whether you are trading, selling, or even exchanging your cryptocurrency for a good (like a Tesla or Mavericks season tickets), you need to be aware of the ramifications. 

Governor Pritzker came out with some additional information about the renter assistance program, which now allows landlords to take action. The program can cover up to 15 months of rental assistance for those impacted by the pandemic. Be sure to give it a listen, there is also information about in-person programming you can attend to get assistance. 

For many business owners who are behind on their taxes, tax day can be a stressful time. Luckily, there are options for those who find themselves in a tough situation. In this episode of "Tax Matters w/ Attorney Steven Leahy," we will be discussing the options people have to get into compliance with the IRS.