Blockchain & Cryptocurrency – Here to Stay

May 31, 2022 by admin

Tuesday May 31, 2022 – The Crypto Crash of recent weeks has put many on alert. Some have seen this as the demise to Cryptocurrency AND Blockchain technology. But don’t let short term fluctuations sour you to this technolgy.

Cryptocurrency has been hyped and there is many speculators out there trying to cash in. The speculation has led to huge swings in the prices of Bitcoin and all the Alt coins. Unfortunately, the swings have been on the down side recently.

Don’t be fooled. Cryptocurrency AND Blockchain technology is here it stay. The potential to change how the world operates is still there – and growing stronger by the day. In many ways, the volitivity is proof of this statement.

Attorney Steven A. Leahy looks at the latest Crypto and Blockchain news on Today’s Tax Talk.

https://opinion.inquirer.net/153497/all-about-blockchain

https://www.analyticsinsight.net/cryptocurrency-projects-that-will-change-the-digital-asset-investment-world-ethereum-eth-solana-sol-and-logarithmic-finance-log/

https://www.ibtimes.com/moneygram-partners-stellar-blockchain-plans-wallet-deal-el-salvador-report-3526108

https://cointelegraph.com/news/tips-to-claim-tax-losses-with-the-us-internal-revenue-service

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 Releases 2021 Data Book

May 26, 2022 by admin

Thursday May 26, 2022 – The Internal Revenue Service (IRS) Data Book is published annually by the IRS and contains statistical tables and organizational information on a fiscal year basis. The report provides data on collecting the revenue, issuing refunds, enforcing the law, assisting the taxpayer, and the budget and workforce.

The IRS is very good at compiling statistics, and breaking those statistics down into categories. The 2021 Data Book was released today. It will take some weeks for me to review all that data.

Because my practice focuses on helping people with tax problems, the first table I look at is Table 25. Delinquent Collection Activities, Fiscal Years 2020 and 2021. This chart breaks down the collection numbers.

Attorney Steven A. Leahy looks at the new IRS numbers on Today’s Tax Talk.

https://www.irs.gov/statistics/soi-tax-stats-irs-data-book

Crypto Losses, Tax Savings?

May 24, 2022 by admin

Tuesday May 24, 2022 – Have you noticed – Cryptocurrency is volatile? Back in 2014 the IRS announced that crypto is property for tax purposes. Not currency, not securities, but property. So, some tax rules that apply to currency or securities do not apply to cryptocurrency.

Rules like the Wash Sale Rule. You can sell your crypto and buy it right back without a 30 day waiting period. Each trade is a taxable event.

The IRS is still inventing the rules for Cryptocurrency. The IRS believes that as much as 10% of the Tax Gap (the difference between how much the IRS collects and how much the IRS should collect), or more than $50 billion, is the result of crypto traders avoiding reporting.

Attorney Steven A. Leahy reports on Cryptocurrency and the IRS on Today’s Tax Talk.

https://www.forbes.com/sites/robertwood/2022/05/19/do-crypto-losses-trigger-tax-losses-with-irs/?sh=18dd83e24419

https://www.cnbc.com/2022/05/18/irs-may-be-missing-out-on-50-billion-dollars-a-year-in-unpaid-crypto-taxes.html

https://www.vox.com/recode/2022/5/11/23065956/detectives-crypto-cops-irs-fbi-cyber-bitcoin

Foreclosures On The Rise

May 23, 2022 by admin

Monday May 23, 2022 – Foreclosures have not been an issue since the pandemic. One of the first things Government did was to issue a Foreclosure Moratorium.

Last August the CDC moratoriums came to and end based on a United States Supreme Court ruling on the issue.. Some States (like Illinois) maintained a foreclosure moratorium thereafter – but no more!

“A total of 50,759 U.S. properties started the foreclosure process in the first quarter of 2022, up 67% from the previous quarter and up 188% from a year ago,” Chicago saw over 3,000 foreclosures in the first three months of the year.

Attorney Steven A. Leahy reviews the numbers and also talks about the tax implications of losing a home to foreclosure. Did you think the IRS wouldn’t be involved?

https://www.courthousenews.com/foreclosure-wave-sweeping-us-crests-in-chicago/

https://recentlyheard.com/2022/05/22/foreclosures-and-your-income-tax/

https://propertyonion.com/education/supreme-court-throws-out-the-foreclosure-moratorium/

IRS – Billions Wasted, Data Unprotected

May 19, 2022 by admin

Thursday May 19, 2022 – The IRS is accused of wasting billions of dollars in taxpayer money and failing to protect taxpayer data. Can this be true?

A recent report by the Government Accountability Office (GAO) reported 1,694 investigations into the willful unauthorized access of tax data by IRS employee at the same time lawmakers in a Congressional Hearing accused the IRS of billions in misspent funds, huge processing backlogs, and complaints over poor customer service.

The IRS budget is over $14BILLION dollars this year (plus any supplemental funding). No matter the issue, taxpayers are told these problems should be expected given that the IRS is drastically underfunded and understaffed. A mantra repeated so often, it must be true.

Attorney Steven A. Leahy reports on these matters, and more, on Today’s Tax Talk.

https://www.wataugademocrat.com/news/national/irs-under-fire-over-wasted-billions-of-dollars-and-millions-in-backlogs/article_a152f37f-8585-50dc-a239-f89ccca5380e.html

https://www.accountingtoday.com/news/irs-probed-hundreds-of-cases-of-employees-getting-unauthorized-access-to-taxpayer-data

https://www.kabc.com/2022/05/18/did-you-know-the-irs-budget-is-12000000000-a-year-thats-billion-with-a-b/

https://www.gao.gov/assets/gao-22-105872.pdf