Tuesday August 16, 2022 – President Biden signed the Inflation Reduction Act today. You may not know the Inflation Reduction Act allocates $4.6 billion dollars to “Enforcement.”

The Act also explictly directs the IRS to perform “digital asset monitoring and compliance activities.”

“(ii) ENFORCEMENT.—For necessary expenses for tax enforcement activities of the Internal Revenue Service to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities,”

Attorney Steven A. Leahy reviews the impact of the Inflation Reduction Act on Cryptocurrency and Digital Assets.

https://www.cpapracticeadvisor.com/2022/08/14/what-the-inflation-reduction-act-means-for-cryptocurrency-regulation/69430/

https://www.forbes.com/sites/taxnotes/2022/08/04/what-the-irs-funding-in-the-inflation-reduction-act-means-for-taxpayers/?sh=61ee2ddf374d

https://www.news.com.au/breaking-news/has-blockchain-found-a-use-beyond-crypto-trading/news-story/203a968b109c9929eccf8e58f9f54aed

Monday August 15, 2022 – The Inflation Reduction Act (IRA) is not yet law, but will be too soon. Democrates and Progressives think the IRA is going to solve all of our problems by making the rish pay their fair share and protecting all others from increased taxes.

“By beefing up the IRS’s capacity to go after wealthy tax cheats, you’re going to be able to collect at least $400 billion of that over the course of the next ten years, and I suspect substantially more,” said Treasury Department employee.

The truth is not as appealing as the Treasury would lead us to believe.

Attorney Steven A. Leahy reveals tthe good news according to progressives.

https://www.npr.org/2022/08/14/1117317757/irs-tax-evaders-dodgers-inflation-reduction-act-enforcement

https://www.commondreams.org/news/2022/08/13/biggest-win-tax-fairness-decades-progressives-cheer-reforms-ira-demand-more

Thursday August 11, 2022 – The Inflaction Reduction Act will allow the IRS to hire an army of new auditors. But, the IRS is already looking to hire 300 Criminal Investigation Special Agents. The job posting for that position has garnered lots of attention.

In addition to the duties one would expect for an IRS agent, the posting included “legally allowed to carry a firearm,” and “major duties” include “Carry a firearm and be willing to use deadly force, if necessary” and “Be willing and able to participate in arrests, execution of search warrants, and other dangerous assignments,”

Attorney Steven A, Leahy exposes the IRS job posting on Today’s Tax Talk.

https://www.foxbusiness.com/politics/irs-faces-online-uproar-special-agent-job-posting-requiring-ability-use-deadly-force-necessary

https://www.marketwatch.com/story/yes-the-irs-is-hiring-criminal-investigators-that-can-use-deadly-force-but-heres-some-context-11660247355

Tuesday August 9, 2022 – The IRS is still evolving their handling of Cryptocurrency. They included, for the first time, a “virtual currency” question on the 2019 1040 Tax Return. That year, the queston was placed on Schedule 1 “Additional Income and Adjustments to Income.” and asked “At any time in 2019 did you receive, sell, send, exchange or otherwise aquire any financial interest in any virtual currency?”

The question did not change for 2020 – but where the question was asked was. The queston was moved from Scheudle 1, a scheudle not included on every 1040 tax return, to the front page. Acutally, the first question – right under the taxpayers’ name and address.

In 2021, the question changed slightly. Instead of asking if a taxpayer – “otherwise aquired” an interest in virtual curreny – the question focused on the disposal of virtual currency, as that is the trigger to a taxable even.

In 2022 – the question is proposed “At any time during 2022, did you: (a) receive (as a reward, award, or compensation); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

This new queston is captures much more than the previous questions. Note the shift from “virtual curreny” to “digital assets.”

Attorney Steven A. Leahy comments on the proposed changes to the crypto queston on 1040 tax forms on Today’s Tax Talk.

https://money.com/irs-crypto-question-tax-return/

https://news.bitcoin.com/irs-expands-crypto-question-on-tax-form/

Monday August 8, 2022 – We have been reporting on the massive expansion of the IRS for some time. Several times, it looked like the expansion was dead, dead, dead.

But, no. IRS Expansion was ALWAYS going to happen, as long as the Democrates have Congress. They can’t spend more money unless they raise more money. And they can’t say they are raising taxes. So, they have to invent gimmicks and work arounds. Like increasing audits to tax the rich.

We all know, the additional 1.2 million audits per year will taget everyone but the wealthy.

Attorney Steven A. Leahy goes through the numbers on Today’s Tax Talk.

https://www.americanthinker.com/articles/2022/08/increasing_the_irs_annual_budget_by_seven_times_doesnt_add_up.html

https://www.washingtontimes.com/news/2022/aug/6/the-misnamed-inflation-reduction-act-a-pointless-g/

https://republicans-budget.house.gov/press-release/democrats-inflation-act-empowers-irs-to-audit-and-harass-hardworking-americans/

https://gop-waysandmeans.house.gov/brady-on-manchin-biden-bill-attention-wal-mart-shoppers-more-irs-audits-headed-your-way/

https://www.finance.senate.gov/ranking-members-news/crapo-democrats-are-proposing-more-taxes-more-spending-higher-prices-and-an-army-of-irs-agents