Today's Tax Talk with Attorney Steven Leahy

Wednesday October 12, 2022 -Tax Evasion is a crime. Tax Avoidance is your duty, as an American (in my opinion).

Tax avoidance uses the tax code to reduce your total tax liability.

Tax Evasion is violating the law and/or hiding income to evade paying your lawful amount due.  

Attorney Steven A. Leahy reviews the difference between Tax avoidance and Tax evasion.

https://www.forbes.com/advisor/taxes/tax-evasion-tax-avoidance/

https://gop-waysandmeans.house.gov/democrats-authorize-the-irs-to-bleed-americans-dry-with-no-accountability/

Tuesday October 11, 2022 - The Inter-Government battle continues.  Which federal agency will win the right to regulate cryptocurrency?  

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have brought action against crypto companies trying gain an advantage over the other in winning Congressional approval over which reglatory agency will reighn over the Crypto world.

Today Attorney Steven A. Leahy will explore if question: Is Cryptocurrency a security?

https://www.forbes.com/advisor/investing/sec-crypto-regulation/

Monday October 10, 2022 - Everyone knows Congress just voted to double the size of the IRS and increase funding by $80 Billion over the next tex years. But, what if the GOP takes Congress the November election.  Will they fund the IRS expansion?  Afterall, the GOP unanimously opposed the Inflation Reduction Act.

House GOP Leader Kevin McCarthy promised the first act of a new Republican majority would be to pass a  bill repealing the new IRS expansion.

Is that good politics?  Good policy?  Or Both,.  Attorney Steven A. Leahy looks at the GOP proposal on Today's Tax Talk.

https://thehill.com/policy/finance/3678188-why-defunding-irs-auditors-wont-be-easy-gop-promise-to-keep/

https://www.wsj.com/articles/gop-gains-in-congress-would-challenge-bidens-irs-expansion-11665266308

Wednesday October 5, 2022 - Repbulicans are warning voters of the massive increase in IRS budget and workforce.  The IRS, aided by the Main Stream Media, is trying to lable this news as disinformaiton - clearly Republican Hyberbole.  

The same misleading agruments are broght forth again.  For example, the additional funds will simply be used to fill soon to be vacant employee spots due to retirement.  Overlooking the fact that the current budget, without the increase, funds the replacements.

This channel has knocked down these strawmen on several other occassions.  So, here we go again.

Attorney Steven A. Leahy takes on the challenge on Today's Tax Talk.

https://www.wcax.com/2022/10/05/do-more-irs-agents-mean-youre-getting-audited/

https://www.cbsnews.com/news/republicans-87000-irs-agents-midterm-elections/

https://finance.yahoo.com/news/republicans-warning-army-87-000-025514524.html

https://finance.yahoo.com/news/republicans-warning-army-87-000-025514524.html

Tuesday October 4, 2022 - Financial Stability Oversight Council (FSOC), ever heard of this coiuncil?  Not too many have.  

The FSOC is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States' financial system.

In the Council's Annual Report the council warned that unregulated cryptocurrencies could pose a risk to the U.S. financial system.  This warning foreshadows additional regulations on the way.

Attonrey Steven A. Leahy looks at the Council's recommendations and the danger ahead.

https://www.barrons.com/articles/cryptocurrency-regulation-fsoc-bitcoin-51664905317

https://www.cnbc.com/2022/10/03/cryptocurrency-treasury-warns-digital-assets-could-threaten-stability-of-economy.html

https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/fsoc/studies-and-reports/annual-reports

Monday October 3, 2022 - EVERYONE has now heard of the massive expansion of the IRS.  But, depending on who you listen to, the impact will not be great - or the impact will be HUGE!

Which is it?  Today Attorney Steven A. Leahy reviews two articles. The first, "The tax man is receiving $80bn – but US small businesses shouldn’t worry."  Author Gene Marks, takes the former view.  All is well.  No need to panic.

The second, "When IRS Form 1099 And Tax Returns Don't Match" Author Robert W. Wood pretty much takes the latter view.

Attorney Steven A. Leahy gives you his take on the change on Today's Tax Talk.

https://www.theguardian.com/business/2022/oct/02/inflation-reduction-act-taxes-small-businesses

https://www.ibtimes.com/when-irs-form-1099-tax-returns-dont-match-3619241

Wednesday September 28, 2022 - United States Senator Elizabeth Warren and House Judiciary Committee Chairman Jerrold Nadler re-introduced the Consumer Bankruptcy Reform Act (CBRA).  Both of these sponsored the same, or similar, bill in 2020.

You might be thinking, "didn't Congress revamp the Bankruptcy Code with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)? The answer is, yes.  Yes they did.  But, in 2005, Congress was controlled by Republicans. 

The CBRA will have Democrat issues addressed.  Like, addressing racial and gender disparities in the bankruptcy system.  Whatever that means. 

The Act will also close loopholes that allow the wealthy to exploit the bankruptcy system.  Again, whatever that means.

But, the biggest change would be allowing Debtors to discharge student loans in bankruptcy.  Something that is very difficult to do under the current rules.

Warren and Nadler have historically supported the most extreme versions of bills.  So, expect CBRA to give much to Democrat constituents and hit the middle class in the pocketbook.  

Attorney Steven A. Leahy looks at the Consumer Bankruptcy Reform Act of 2022 on Today's Tax Talk.

https://www.warren.senate.gov/newsroom/press-releases/senator-warren-and-representative-nadler-reintroduce-the-consumer-bankruptcy-reform-act

https://www.cbsnews.com/news/elizabeth-warren-bill-student-loans-college-debt-bankruptcy-reform/

https://www.congress.gov/bill/116th-congress/senate-bill/4991

Monday September 26, 2022 - Who makes tax laws?  The IRS or Congress?  Many taxpayers don't know that the IRS takes positions on many tax issues that are not consistent with the text of the statute.

Taxpayers are left with an expensive uphill battle once the IRS selects a path.  Now, we understand there are appeals, US Tax Courts, Districts Courts - but these steps can be expensive.

Also, Republican canidates for Congress have pledged to end the IRS expansion should they win control of the House of Representatives.

Attorney Steven A. Leahy reports on this practice on Today's Tax Court.

https://www.columbiatribune.com/story/opinion/2022/09/25/tame-your-taxes-irs-regulatory-overreach-part-4/69512731007/

https://www.shorenewsnetwork.com/2022/09/25/we-will-repeal-87000-irs-agents-house-gop-leader-says-gop-will-work-for-you/

Thursday September 15, 2022 - United States Treasury Secretary Janet Yellen Speaking at an IRS facility in New Carrollton, Maryland, said "the funding will help to improve the IRS in the form of better technology and taxpayer services, and stronger enforcement focused on wealthy Americans and corporations."

Yellon also said "Importantly, I’ve directed that enforcement resources will not be used to raise audit rates for households making under $400,000 a year relative to historical levels," 

Republicans in Congress have prosposed legislation that would prevent the IRS from using any of the Inflation Reduction Act money to audit taxpayers who earn less than $400,000 annually.  Good luck.

Attorney Steven A. Leahy critiques Secretary Yellon's announcements about how the IRS will use the $80 Billion windfall on Today's Tax Talk.

https://thehill.com/policy/finance/3644613-yellen-hails-text-message-tax-filing-in-speech-to-irs/

https://www.cnbc.com/2022/08/26/op-ed-the-irs-just-isnt-prepared-for-the-inflation-reduction-act.html

https://www.foxbusiness.com/economy/yellen-outlines-planned-changes-irs-80b-overhaul

https://taxfoundation.org/inflation-reduction-act-irs-funding/

https://www.foxnews.com/us/senate-republicans-protect-americans-earning-less-than-400k-irs-audits

Wednesday September 14, 2022 - Recently, our Government doubled the size with the Inflation Reduction Act.  There have been assurances the IRS will not use this increase in power to target any American group.

Those assurances now ring hollow after Judicial Watch published the recently unsealed 2017 sworn depositions  by Lois Lerner, then director of the Exempt Organizations Unit of the Internal Revenue Service  and Holly Paz, her top aide and former IRS director of Office of Rulings and Agreements,

Judicial Watch found: "The unsealed Lerner and Paz deposition transcripts reveal through sworn testimony the bureaucratic tangle created by the Obama IRS to single out, delay and deny the processing of conservative, especially Tea Party non-profit groups’ applications for tax-exempt status and to disclose their donors’ names. At the same time, Paz admits under questioning that she knew from the beginning there was not sufficient legal basis to deny most of the targeted groups tax exempt status:"

Attorney Steven A. Leahy reviews the Judical Watch findings on Today's Tax Talk.

https://www.judicialwatch.org/tea-party-targeting/

https://www.foxnews.com/us/senate-republicans-protect-americans-earning-less-than-400k-irs-audits