Cryptocurrency [Bitcoin] and the IRS

By Eric P. Rothenberg, Esq. – [Download PDF Article] The creation and use of cryptocurrency is very recent. Back in 2010, it just began trading. In 2011, it hit its first “bubble” at $31 per coin when previously they traded for just pennies. Most people by now have already heard it hit nearly $18,000 in December 2017. That’s quite a leap in just 7 years. If you wish to learn all about cryptocurrency and the blockchain technology behind it, which may become an important tool for many businesses in the future, go to the Wikipedia’s History of Bitcoin. This article is not about what bitcoins are, but is about what you need to know about their income tax and reporting aspects. And this article is a very over-simplified view to point out the issues and give you some guidance as a start. For many years, no one even knew what

IRS Uses Private Collection Companies

By Eric P. Rothenberg, Esq. – The Internal Revenue Service [“IRS”] announced on April 5th , 2017 that they will begin to use private collection agencies to collect back taxes owed. Soon, the IRS will begin its process of sending letters to certain taxpayers that their past due federal tax accounts are being turned over to a private debt collection agency. This isn’t the first time they had this program. It’s a renewed program that uses private-sector collection agencies (PCA) which were first authorized under the Fixing America’s Surface Transportation [“FAST”] Act of 2015. “Here’s a simple rule to keep in mind. You won’t get a call from a private collection firm unless you have unpaid tax debts going back several years and you’ve already heard from the IRS multiple times,” said IRS Commissioner John Koskinen. “The people included in the private collection program typically already know they have a

Are You Tax Return Prepared?

By Eric P. Rothenberg, Esq. – In order for you or your preparer to do a good job on your income tax returns, which in turn will reduce the risk of being audited, here are some notions you must keep in mind. The Internal Revenue Service requires individuals to gather the adequate documents that can also help provide answers if their return is selected for an audit or to prepare a response if they receive an IRS notice. There’s a list of tips and facts designed to help you begin planning to file your 2015 income tax returns. Basic Recordkeeping: Identify sources of income. This is one of the least done tax preparations that needs to be done. The IRS’s position is that all income is taxable unless you can prove otherwise. When you get audited, usually two years or more after you have filed, you will not remember what each

What Should You Do If You are Audited?

By Eric P. Rothenberg, Esq. – Some of you might get hit by what we in the tax law call the “AUDIT LOTTERY”. This is when you are selected for an audit. Due to extreme budget cuts by Congress for the IRS funding, the odds of being audited are as small as they have ever been. However, many folks will “win” that lottery and be audited every year. I. Why were you selected? There are three basic ways you are selected for an audit: Matching Documents. The IRS matches forms filed by various parties (employers, brokerage houses, vendor payors, etc) and the IRS matches what you have reported on you tax forms with those sent in by the payors. If they don’t match, they might audit you. Related party audits: If an entity is being audited by the IRS such a trust, an S Corp, C Corp or a Partnership

American Tax Relief Giving Back $16 Million To Clients

By Eric P. Rothenberg, Esq. – August 15, 2014 – According to today’s Boston Globe, the Federal Trade Commission (FTC) was able to get a federal judge to close down a company taking advantage of taxpayers needing tax relief from their debts to the IRS and state revenue agencies. American Tax Relief is giving back $16 Million to over 18,000 clients for making false promises to them. The FTC said American Tax Relief brought in over $100 Million charging individual taxpayers between $3,200 to $25,000. Not only did the owners of American Tax Relief have to give up all their assets, even the owner’s parents had to give up condominiums, jewelry and money. The FTC alleged that the company did not gather sufficient information from consumers to know whether they would be likely to qualify for either an Offer in Compromise or a penalty abatement. The FTC said not to

Tax Articles

Cryptocurrency [Bitcoin] and the IRS

IRS Uses Private Collection Companies

Are You Tax Return Prepared?

What Should You Do If You are Audited?

American Tax Relief Giving Back $16 Million To Clients

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© 2024 by Orsi Arone Rothenberg Turner, LLP. All rights reserved.

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Tax Articles

Cryptocurrency [Bitcoin] and the IRS

IRS Uses Private Collection Companies

Are You Tax Return Prepared?

What Should You Do If You are Audited?

American Tax Relief Giving Back $16 Million To Clients

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How Can We Help?

© 2024 by Orsi Arone Rothenberg Turner, LLP. All rights reserved.

Attorney Marketing by Bardorf Legal Marketing

Have A Question?