Tuesday June 14, 2022 – What goes up, must come down. The old axiom rings true. Look at Bitcoin – the Gorilla of crypto – it was trading at nearly $70,000.00 in November 2021. Today, Bitcoin went below $21,000 for a short time. It’s fallen 25% in the past five days alone, to its lowest value in 18 months.

Crypto has always been volatile – it has weathered several “Crypto Winters” in its short life. Last month two coins, TerraUSD and cryptocurrency Luna, both of Terraform Labs, dropped to nearly zero in value.

Terraform Labs has since introduced Luna 2.0. “A chance to rise up anew from the ashes,” said Do Kwon, founder of Terraform Labs.

Attorney Steven A. Leahy takes a look at the ashes of the market to see if the phoenix will rise again on Today’s Tax Talk.

https://www.bbc.com/news/technology-61796155

https://www.msn.com/en-us/news/technology/their-cryptocurrencies-crashed-the-market-now-they-e2-80-99re-back-at-it/ar-AAXX7ZH

https://threadreaderapp.com/thread/1536476104986267648.html

Monday June 13, 2022 – The IRS is not too active collecting immediately after tax season. After all, they have a lot to do. But, come to the end of June, into July, expect the IRS to start contacting you about any unpaid tax, or any questions they might have about matching information returns with tax returns.

IRS Form CP14 is the first in a series of letters the IRS will send you if there is an unpaid balance for the last tax year. When asked, “What is the notice about?” The IRS answers, “We sent you this notice because you owe money on unpaid taxes.”

If you receive IRS Notice CP14 – read it carefully. The notice will tell you how much the IRS says you owe, when the IRS expects you to pay, and what to do if you disagree.

If you disagree – contact the IRS right away. Object! If the IRS is correct, and you can pay, pay right away to avoid penalties and interest.

If you can’t pay – this Notice is not the last you will hear from the IRS. There is a series of letters the IRS must send BEFORE they can take anything away from you (Levy). So, you still have some time to work out an Installment Agreement, or some other remedy with the IRS.

Attorney Steven A. Leahy helps taxpayers who owe the IRS. So, he has seen IRS Notice CP14 before.

https://www.irs.gov/individuals/understanding-your-cp14-notice

https://www.nbc4i.com/news/local-news/columbus/still-owe-taxes-heres-an-irs-notice-to-watch-for/

https://www.cbsnews.com/news/irs-cp14-notice-taxes-due/

Wednesday June 8, 2022 – United .States Treasury Secretary Janet Yellen appeared at a Senate Hearing on Tuesday and said “The IRS is under siege. It is suffering from huge underinvestment,”

She, again, urged Congress to pass the Build Back Better Bill, or at least that portion that funds the IRS with an additional $80 billion over 10 years. That legislation would nearly double the IRS Budget and more than double the number of IRS employees.

Approving Treasury’s budget request would allow the IRS “to be able to … make sure that people are paying the taxes that are due.

Attorney Steven A. Leahy reports on this important story on Today’s Tax Talk.

https://www.yahoo.com/video/yellen-says-irs-under-siege-184329459.html

Tuesday June 7, 2022 – Legislation was introduced in Congress today that would classify the vast majority of digital assets as commodities, giving regulatory control to the Commodity Futures Trading Commission.

The Bill is presented as the bill as “landmark bipartisan legislation that will create a complete regulatory framework for digital assets that encourages responsible financial innovation, flexibility, transparency and robust consumer protections while integrating digital assets into existing law.”

there are those that believe, “[i]n order for cryptocurrencies to truly expand to their highest possible market reach and for the technology underlying these digital assets to fully provide benefits to global economies, regulation is critical. In order for there to be effective regulation, there must be clearly defined terms and distinctly assigned overseeing bodies”

Attorney Steven A. Leahy reviews the proposed legislation on Today’s Tax Talk Crypto-Tuesday edition.

https://www.cnbc.com/2022/06/07/bipartisan-crypto-bill-lummis-and-gillibrand-want-to-empower-cftc-treat-digitals-assets-like-commodities.html

https://www.benzinga.com/markets/cryptocurrency/22/06/27591741/bitcoin-ethereum-and-dozens-of-others-to-be-classified-as-commodities-according-to-new-cry

Monday June 6, 2022 – Where you reside and where you are domiciled are not always the same, and may be VERY important when paying state taxes.

My practice is in Illinois. Many Illinois residents are fleeing Illinois for greener (and cheaper) pastures. But, Illinois wants to hang on to these Illinoisans and their tax payments. Simply moving to a new state may not be enough to cut the ties and change your domicile.

Other states have this same issue. Attorney Steven A. Leahy reviews the case of O. Gene Bicknell vs. Kansas Department of Revenue and the chance that your chance of being audited just doubled. Both stories on Today’s Tax Talk.

https://www.wsj.com/articles/pizza-hut-tax-battle-bicknell-kansas-florida-change-of-residence-11654290410