Crypto AI??

February 21, 2023 by admin

Crypto-Tuesday February 21, 2023 – Crypto mining facilities are becoming increasingly important in the AI world, as they offer the perfect opportunity to host AI processing while remaining within the blockchain space. Through various projects AI-related activities can be done within a decentralized environment. Furthermore, with the emergence of new ledgerless protocol, blockchain solutions are being developed specifically for AI applications.

Miners are starting to redirect their resources to power these AI networks and their applications. This could prove to be a win-win situation for both miners and developers of AI-based applications, as miners would benefit from an additional source of revenue while developers would have access to powerful distributed computing resources at low costs.

Ultimately, this could lead to the further decentralization of the global economy by enabling more people across the world to participate in the development of AI-based applications. Consequently, this could provide a much broader range of services and products for consumers, creating an even more accessible global market.

The hardware underlying AI will be a critical aspect of decentralizing the global economy. Repurposing of a portion of crypto mining hardware to running AI processing could have a revolutionary impact on the development of AI-based solutions beyond finance.

Crypto mining rigs are based in diverse legal jurisdictions and owned by a variety of different parties. A globally distributed AI network spread across crypto mining rigs would be dramatically more difficult for governments or other parties to centrally control than an AI network centered in Big Tech-owned data centers.

This would make it easier for nascent AI projects to get off the ground and open up new possibilities for both businesses and individuals when it comes to developing, managing, and participating in AI solutions. In this way, these crypto-mined AI networks could become a major driver of decentralization within the global economy.

Attorney Steven A. Leahy discusses these new AI possibilities on Today’s Tax Talk.

https://coinflip.tech/markets

https://cointelegraph.com/news/cryptocurrency-miners-may-lead-the-next-stage-of-ai

Steven A. Leahy is a tax attorney in Illinois. He was the host of the long-running popular Radio Show “The IRS Radio Hour” heard every Sunday evening on AM 560 The Answer. Attorney Leahy is also the author of the book “Deal With Your IRS Problems Today!” You can get a FREE copy of this important book at FreeIRSBook.com. Or Call 24/7 (312)664-6649

IRS Algorithms

February 21, 2023 by admin

Monday February 20, 2023 – This space has been pointing out that the Internal Revenue Service (IRS) is planning to devote its increased budget to machine learning and data analytics, rather than hiring thousands of new revenue agents.

This shift towards the use of artificial intelligence (AI) in making IRS decisions less transparent, as AI algorithms can be difficult or impossible to understand and their decisions are often cloaked in bureaucratic secrecy.

To protect American taxpayers Congress must insist on IRS algorithmic accountability. This includes publicizing pre-existing data sets used to train the algorithm, making available a detailed explanation of the algorithm’s rules and how it makes decisions, and providing a mechanism for taxpayers to challenge algorithms that appear to be arbitrary or unfair. Further, any AI decision made by the IRS should include some form of human review and oversight.

The use of artificial intelligence in government is unavoidable. However, it is essential that taxpayer rights remain paramount and that any AI decision has sufficient safeguards to protect them from being harmed by rogue algorithms. By increasing transparency and oversight of the IRS’s use of AI, Congress can ensure that taxpayers are not unfairly targeted or harmed by misguided algorithms.

Attorney Steven A. Leahy looks at AI algorithms and IRS decision-making on Today’s Tax Talk.

https://thehill.com/opinion/finance/3864905-rise-of-the-tax-machines-irs-algorithms-are-coming-for-you/

https://www.forbes.com/sites/nicksibilla/2023/02/20/supreme-court-to-decide-if-irs-can-secretly-access-bank-records/?sh=5d31a288486c

3M COMPANY vs IRS

February 17, 2023 by admin

Thursday February 16, 3033 – National Review’s Travis Nix asks the question “Who is in charge of tax legislation, the IRS and the Department of the Treasury or Congress. The question is raised because of a recent Tax Court decision of 3M Company vs Commissioner of the IRS.

In the 3M case, the IRS claimed 3M should pay 6% tax royalties on net sales from its Brazilian subsidiary, even though Brazilian Law caps payment at 1%. Thereby double taxing the 5% difference.

The decision allows the IRS to ignore foreign laws which limit inter-company transactions and disregards the keystone of U.S. transfer-pricing regulations that allocate income as if both companies were negotiating with a non-related company, resulting in tax avoidance and evasion.

The decision may have severe economic consequences, such as lost market access for U.S. companies and less economic growth in both countries. Should Congress enact legislation overturning this regulation by mandating the IRS to respect foreign law in transfer-pricing cases?

Attorney Steven A. Leahy reviews this important Tax Court case on Today’s Tax Talk.

https://www.nationalreview.com/2023/02/congress-should-stop-the-irs-from-taxing-phantom-income/

https://aboutbtax.com/6Hi

IRS Commissioner Confirmation Hearing Underway

February 16, 2023 by admin

Wednesday February 15, 2023 – The confirmation hearing for the nomination of Daniel Werfel as Commissioner of the Internal Revenue Service (IRS) is underway, with a variety of topics to be discussed. The Senate Finance Committee will question Mr. Werfel on matters such as the $80 billion increase in IRS budget for enforcement and collection activities, recent leaks of taxpayer information, and audit rates that will not increase for households earning less than $400,000.

This hearing could determine whether or not he is confirmed as Commissioner of the IRS by President Biden’s administration. He will be confirmed. Mr. Werfel is exactly the Washington insider who gets these jobs. Remember, Mr. Werfel was an acting commissioner for a time May 22, 2013 to December 23, 2013.

With so much at stake during this hearing, it remains to be seen what answers has Mr. Werfel prepared and how it will influence the outcome of his nomination process. It is only a matter of time before the Senate confirms Mr. Werfel as IRS Commissioner.

Attorney Steven A. Leahy reviews the confirmation hearing on Today’s Tax Talk.

https://www.nytimes.com/2023/02/15/business/irs-daniel-werfel-hearing.html

https://www.cnn.com/2023/02/15/politics/daniel-werfel-irs-commissioner-confirmation-hearing/index.html

See the testimony at C-Span:

https://www.c-span.org/video/?525971-1/irs-commissioner-nominee-daniel-werfel-testifies-confirmation-hearing

Crypto Crackdown!

February 15, 2023 by admin

Crypto-Tuesday February 14, 2023 – The crypto world has been rocked by several major regulatory actions. New York regulators shut down new issuance of the world’s third-largest stablecoin, BUSD, while the SEC fined the parent of another big crypto exchange and forced it to stop offering a popular type of crypto-yield product to U.S. investors.

Banking regulators are also quietly pushing for more oversight into crypto exchanges and other digital currency businesses. These moves could have a profound impact on the future of cryptocurrency.
For those already involved in cryptocurrency, it means greater scrutiny from government agencies and more stringent regulations that must be followed.

Being aware of these changes can help you identify potential areas of growth in the industry that might have otherwise gone unnoticed. For example, if one crypto exchange is no longer allowed to offer certain products or services due to regulatory pressure, another company may be able to step in and fill that void—allowing some to capitalize on an untapped market opportunity.

The recent flurry of regulatory activity shows that cryptocurrency regulation is here to stay. That’s why it’s essential for business owners to stay up-to-date on these developments in this space so they can make informed decisions when it comes to their own operations and investments in cryptocurrencies.

Attorney Steven A. Leahy summarizes the latest Cryptocurrency news on Today’s Tax Talk.

https://www.cnbc.com/2023/02/14/cryptocurrency-markets-on-edge-as-us-regulatory-crackdown-intensifies.html

https://www.wsj.com/articles/crypto-investors-brace-for-more-crackdowns-from-regulators-c1507134?mod=djemalertNEWS

https://coinflip.tech/markets