CryptoTuesday December 13, 2022 – As we approach the end of 2022 Crypto News seems to be all negative. Many are asking, “Is this the end of Crypto?”

What is the answer? In my opinion, there are two certainties. One – Crypto is here to stay. Two – There will be much more regulation in this sector.

Holders of crypto have taken huge losses: More than $2 trillion in market cap have disappeared. While Bitcoin is down 75% off its peak, it is still up 4x from December 2018. Ethereum, the second most popular coin, is up more than 1000% over that same time frame.

Attorney Steven A. Leahy talks Crypto on Today’s Tax Talk.

https://www.kiplinger.com/investing/cryptocurrency/whats-next-for-cryptocurrency-after-the-collapse-of-ftx

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Monday December 12, 2022 – The new tax season is closing in on us. Many taxpayers want to file their tax returns as early as possible, to get their refund quickly. The IRS is set to begin accepting and processing 2022 tax returns Monday January 24, 2023.

Usually, the IRS encourages taxpayers to file early. But wait! This year, because of the new 1099 K rules, the IRS advises taxpayers to slow down. Wait for key documents. Remember, the third-party payment networks, like Venmo and PayPal? Remember, when the IRS told us it wasn’t a big deal? Now, it is a Big Deal!!

Before the 2022 tax year, only taxpayers with 200 or more transactions AND worth more than $20,000 were received a 1099 k. Now, under the new rules, the threshold is transactions worth more than $600, no matter how many transactions. A BIG change. Many more taxpayers are going to have to deal with these tax forms. Like it or not.
Attorney Steven A. Leahy will discuss the IRS warning on Today’s Tax Talk.

https://www.cnbc.com/2022/12/12/irs-when-to-submit-your-tax-return-in-2023-to-avoid-missing-forms.html

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Thursday December 8, 2022 – FTX is in bankruptcy. If a taxpayer has losses from their investment in FTX these “customers will face a nightmare when they file their income tax returns next year.”

Much may depend on whether Sam Bankman-Fried is charged with a crime. Because a criminal proceeding might trigger special IRS rules for Ponzi scheme investment losses, allowing for immediate deductions. Otherwise, these taxpayers might have to wait for IRS guidance or court judgments. That may take years.

Attorney Steven A. Leahy unleashes on the FTX scandal and the effect on taxpayers. on Today’s Tax Talk.

https://www.foxbusiness.com/money/ftx-customers-irs-ponzi-rules-loom-large

https://www.irs.gov/pub/irs-drop/rr-09-09.pdf

https://www.irs.gov/pub/irs-drop/rp-09-20.pdf

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Wednesday December 7, 2022 – I have been shouting from the roof tops about the $600 limit for 1099K reporting   I have even predicted that, once taxpayers are faced with this monstrosity, Congress would take action to reverse it.

Well, today a Democratic Congressman, from Illinois no less, Raja Krishnamoorthi, sponsored legislation to “radically increase the threshold” from $600.00.

The IRS has been on a propaganda campaign to alert taxpayers that this new rule is coming…and coming soon.

Remember, the Affordable Care Act originally included a provision that required businesses to report every purchase from a single vendor over $600. That provision was quickly repealed – Before it went into effect. At the time, IRS Taxpayer Advocate Nina Olson, reported that costs to businesses would drastically outweigh the expected revenue ($19 billion over 10 years).

Attorney Steven A. Leahy does not take too many bows for the accurate prediction in Today’s Tax Talk.

https://rollcall.com/2022/03/15/democrats-push-to-loosen-gig-worker-tax-reporting-threshold/

https://www.foxnews.com/video/6316677404112

https://www.msn.com/en-us/news/opinion/team-biden-is-using-the-irs-to-attack-the-gig-economy/ar-AA14Wqna

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Crypto-Tuesday, December 6, 2022 – With the falling price of Cryptocurrencies there is talk that some new rules, due to take effect in 2023, may be postponed. Specifically, the new rule requiring crypto exchanges and brokerages to report customer information directly with the IRS.

Another result of falling Crypto prices is the ability of investors for tax loss harvesting. “[T]ax-loss harvesting is a long-established planning strategy when it comes to stocks, bonds and other conventional investments. It typically comes into focus at the end of a year.”

Attorney Steven A. Leahy addresses these issues on Today’s Tax Talk.

https://www.axios.com/2022/12/05/the-irs-is-coming-for-crypto-but-its-complicated

https://www.marketwatch.com/story/cryptocurrency-investor-losses-are-being-turned-into-irs-gains-heres-how-theyre-doing-it-11670345179

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