Tuesday October 4, 2022 – Financial Stability Oversight Council (FSOC), ever heard of this coiuncil? Not too many have.

The FSOC is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States’ financial system.

In the Council’s Annual Report the council warned that unregulated cryptocurrencies could pose a risk to the U.S. financial system. This warning foreshadows additional regulations on the way.

Attonrey Steven A. Leahy looks at the Council’s recommendations and the danger ahead.

https://www.barrons.com/articles/cryptocurrency-regulation-fsoc-bitcoin-51664905317

https://www.cnbc.com/2022/10/03/cryptocurrency-treasury-warns-digital-assets-could-threaten-stability-of-economy.html

https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/fsoc/studies-and-reports/annual-reports

Monday October 3, 2022 – EVERYONE has now heard of the massive expansion of the IRS. But, depending on who you listen to, the impact will not be great – or the impact will be HUGE!

Which is it? Today Attorney Steven A. Leahy reviews two articles. The first, “The tax man is receiving $80bn – but US small businesses shouldn’t worry.” Author Gene Marks, takes the former view. All is well. No need to panic.

The second, “When IRS Form 1099 And Tax Returns Don’t Match” Author Robert W. Wood pretty much takes the latter view.

Attorney Steven A. Leahy gives you his take on the change on Today’s Tax Talk.

https://www.theguardian.com/business/2022/oct/02/inflation-reduction-act-taxes-small-businesses

https://www.ibtimes.com/when-irs-form-1099-tax-returns-dont-match-3619241

Wednesday September 28, 2022 – United States Senator Elizabeth Warren and House Judiciary Committee Chairman Jerrold Nadler re-introduced the Consumer Bankruptcy Reform Act (CBRA). Both of these sponsored the same, or similar, bill in 2020.

You might be thinking, “didn’t Congress revamp the Bankruptcy Code with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)? The answer is, yes. Yes they did. But, in 2005, Congress was controlled by Republicans.

The CBRA will have Democrat issues addressed. Like, addressing racial and gender disparities in the bankruptcy system. Whatever that means.

The Act will also close loopholes that allow the wealthy to exploit the bankruptcy system. Again, whatever that means.

But, the biggest change would be allowing Debtors to discharge student loans in bankruptcy. Something that is very difficult to do under the current rules.

Warren and Nadler have historically supported the most extreme versions of bills. So, expect CBRA to give much to Democrat constituents and hit the middle class in the pocketbook.

Attorney Steven A. Leahy looks at the Consumer Bankruptcy Reform Act of 2022 on Today’s Tax Talk.

https://www.warren.senate.gov/newsroom/press-releases/senator-warren-and-representative-nadler-reintroduce-the-consumer-bankruptcy-reform-act

https://www.cbsnews.com/news/elizabeth-warren-bill-student-loans-college-debt-bankruptcy-reform/

https://www.congress.gov/bill/116th-congress/senate-bill/4991

Tuesday September 27, 2022 – The IRS and other Federal and State agencies are increasingly focusing on cryptocurrency. So, if you have been lax on reporting your crypto trades, watch out for these new developments.

For example, the IRS recently issued a “John Doe” summons to the banking partner of digital currency prime broker. The summons allowed the IRS to search the banks records to locate all of the crypto broker’s customers. Remember, digital currencies operating on public blockchains leave time-stamped transactions for all to see and follow.

Much like the old anonymity of a Swiss Bank Accounts (no longer), the United States Government is using its ability to limit access to the American market, to force all business to reveal all financial transaction information.

You thought crypto was anonymous? Think again.

Attorney Steven A. Leahy reviews this trend in law enforcement.

https://www.wolterskluwer.com/en/expert-insights/irs-maintains-watchful-eye-over-cryptocurrency

https://www.latimes.com/california/story/2022-09-23/fbi-beverly-hills-safe-deposit-box-raid-forfeiture-judge

https://www.msn.com/en-us/news/technology/eight-states-sue-crypto-lender-nexo-over-security-sales-and-misleading-marketing/ar-AA12h9NT

Monday September 26, 2022 – Who makes tax laws? The IRS or Congress? Many taxpayers don’t know that the IRS takes positions on many tax issues that are not consistent with the text of the statute.

Taxpayers are left with an expensive uphill battle once the IRS selects a path. Now, we understand there are appeals, US Tax Courts, Districts Courts – but these steps can be expensive.

Also, Republican canidates for Congress have pledged to end the IRS expansion should they win control of the House of Representatives.

Attorney Steven A. Leahy reports on this practice on Today’s Tax Court.

https://www.columbiatribune.com/story/opinion/2022/09/25/tame-your-taxes-irs-regulatory-overreach-part-4/69512731007/

https://www.shorenewsnetwork.com/2022/09/25/we-will-repeal-87000-irs-agents-house-gop-leader-says-gop-will-work-for-you/