Don’t Panic! How to Get an IRS Extension FAST

April 13, 2023 by admin

Wednesday April 12, 2023 – Tax Day is April 18th this year. Don’t let the change in the date get you. Yes, April 15th is usually Tax Day – but the rule is – and this rule goes for preforming most any act for tax purposes – if the deadline falls on a Saturday, Sunday or legal holiday it is considered timely if filed no later than the next day that is not a Saturday, Sunday or legal holiday. The term “legal holiday” means any legal holiday in the District of Columbia (and gets more complicated if the new due date falls on an official state holiday). April 15th falls on Saturday this year. And the next Monday April 17th is a legal holiday in DC (Emancipation Day). So, Tuesday April 18th is Tax Day.

Some taxpayers living overseas and disaster victims may have later filing deadlines. Alabama, California and Georgia storm victims now have until May 15 to file various federal individual and business tax returns and make tax payments.

If you won’t be able to file your tax return by April 18th. Consider asking for an extension. An extension will set a new deadline of October 16 (October 15 is a Sunday). To get an extension you simply complete IRS Form 4868. Form 4868 is a single page form with basic information: your name, address and social security number. The form also asks you to estimate how much tax you will owe?

BECAUSE your taxes are still due on April 18th! You don’t get an extension to pay your taxes, just to file the return. VERY IMPORTANT. If you fail to pay by April 18th, you will receive a failure to pay penalty. The Failure to Pay Penalty is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won’t exceed 25% of your unpaid taxes.

Here is something most don’t know. Taxpayers can use the Free File program to file an extension electronically – no matter what your income is. EVERY taxpayer can use free file to file an extension.

By filing an extension, you will avoid the failure to file penalty. That penalty is 5% of unpaid taxes for each month that a filing is late, with the penalty capped at 25% of unpaid taxes.

Oh, and most states don’t require you to file separate state extension forms if you don’t owe any additional taxes. When you file your state return, you only need to attach a copy of your federal extension form. If you owe state tax, you typically must file state tax extension to avoid penalties.

Attorney Steven A. Leahy explains filing extensions on Today’s Tax Talk.

https://www.cbsnews.com/news/taxes-2023-tax-extension-deadline-how-to/

https://www.irs.gov/newsroom/irs-kicks-off-2023-tax-filing-season-with-returns-due-april-18

https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

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

Bitcoin Breaks $30,000

April 11, 2023 by admin

Crypto-Tuesday April 11, 2023 – Bitcoin, the world’s largest cryptocurrency by market capitalization, has broken through the $30,000 threshold for the first time since May 2021, marking a significant milestone in its volatile price history.
The digital currency has been on a rollercoaster ride in recent years, experiencing extreme fluctuations in value, but this latest surge is a positive sign for investors who have held onto their bitcoin through the ups and downs.

The price surge can be attributed to several factors, including increased institutional adoption of bitcoin, growing interest from retail investors, and a renewed focus on the potential use cases of cryptocurrencies. Some experts also point to the current economic climate, which has seen governments around the world pumping trillions of dollars into their economies to counter the effects of the COVID-19 pandemic, as a key driver of the bitcoin price surge.

Speculation is rampent. Will Bitcoin continue the surge. Some speculate to $1 Million. Or, will it crash and burn to zero. Only time will tell.

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

https://coinflip.tech/markets

https://www.reuters.com/technology/bitcoin-pushes-past-30000-investors-eye-end-rate-rises-2023-04-11/

https://www.coindesk.com/business/2023/04/11/bitcoin-breaks-above-30k-for-first-time-since-june-2022/

New IRS Plan: Promises, Promises

April 6, 2023 by admin

Thursday April 6, 2023 – The Internal Revenue Service released its Inflation Reduction Act Strategic Operating Plan today. The plan is more of a “Wish List” or fantasy in my view.

All that was wrong with the IRS will now be made right.

According to the IRS Plan:

The Plan is structured to achieve five objectives, which will be accomplished through a series of initiatives
and projects aligned to each.

Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives
for which they are eligible
Quickly resolve taxpayer issues when they arise
Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to
address the tax gap
Deliver cutting-edge technology, data, and analytics to operate more effectively
Attract, retain, and empower a highly skilled, diverse workforce and develop a culture that is better
equipped to deliver results for taxpayers

The new Commissioner, Danny Werfel, calls it “a vision for the future of Federal tax administration.”

The purpose of the plan was to lay out how the IRS was going to spend the $80 Billion from the Inflation Reduction Act. But the plan doesn’t include any numbers until page 131. And then only in a high level, general, and abstract way.

Let’s not forget the IRS scandals of the 2010’s. Not only the targeting of conservative organizations, but the capricious waste of taxpayer money for lavish conferences that included 10s of thousands of dollars for video parodies of Star Trek and Gilligan’s Island.

Attorney Steven A. Leahy critiques the new IRS report on Today’s Tax Talk.

https://www.irs.gov/about-irs/irs-inflation-reduction-act-strategic-operating-plan

https://thehill.com/homenews/ap/ap-business/irs-pledges-better-customer-service-no-new-agents-with-guns/

https://www.cnn.com/2013/06/06/politics/congress-irs-waste/index.html

They Call Him Danny

April 6, 2023 by admin

Wednesday April 5, 2023 – Danny Werfel was sworn in as the 50th Commissioner of the Internal Revenue Service on Tuesday April 4, 2023. While Commissioner Werfel was sitting through his Senate confirmation hearing, the Treasury Department missed its self-appointed deadline to present a plan to the American people on just how they planned to spend the nearly $80 Billion in new funding for the IRS provided by the Inflation Reduction Act. Remember the Inflation Reduction Act? The Act that was passed without a single Republican vote.

Danny is not new to the IRS. He was appointed as the Acting Commissioner of the Internal Revenue Service (IRS) on May 22, 2013, by then-President Barack Obama. Right after the IRS was caught targeting conservative groups seeking tax-exempt status and the previous Commissioner, Steven Miller resigned under a cloud. Think Lois Learner.

Commissioner Werfel has promised the IRS workforce they will receive the credit they deserve. The IRS workforce “has risen to the occasion and delivered for taxpayers with limited resources.” The additional $80 Billion will allow the IRS to treat every taxpayer fairly.

Don’t worry, everything you ever thought bad about the IRS, will be just great. This filing season has been better than the previous filing seasons. You know the filing seasons when the IRS employees stayed home and no one was there to process returns or answer the phone.

Attorney Leahy welcomes IRS Commissioner Danny Werfel on Today’s Tax Talk.

https://www.govexec.com/management/2023/04/new-irs-chief-growing-workforce-will-transform-agency-armed-only-their-calculators/384806/

https://www.irs.gov/about-irs/commissioner-danny-werfel

https://federalnewsnetwork.com/reorganization/2023/04/irs-commissioner-danny-werfel-outlines-plan-to-transform-agency-with-historic-investment/

The Battle for Crypto Clarity

April 5, 2023 by admin

Crypto-Tuesday April 4, 2023 – In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. (Ripple), the company behind the XRP cryptocurrency, claiming that XRP was an unregistered security. Ripple has denied the allegations and the case has been closely watched by the cryptocurrency industry. The outcome of the case could have far-reaching consequences for the regulation of cryptocurrencies in the United States and around the world.

The SEC’s complaint alleges that Ripple conducted an unregistered securities offering when it sold XRP to investors. According to the complaint, XRP was sold as an investment contract, and therefore, XRP is a security under U.S. law. The SEC is seeking to recover all profits obtained by Ripple and its founders as a result of the alleged sale of unregistered securities, as well as civil penalties.

Ripple has vigorously denied the allegations, arguing that XRP is not a security and that the SEC’s case is misguided. Ripple contends that XRP is a digital asset that serves as a medium of exchange and a store of value, and therefore, is not subject to the same regulations as securities.

The case has generated a great deal of interest and concern. Many observers believe that the outcome of this case will have far-reaching consequences for the regulation of cryptocurrencies. If the SEC prevails, it will set a precedent for other cryptocurrencies to be classified as securities, which would subject them to stricter regulation and potentially stifle innovation within the industry. If Ripple prevails, the SEC’s position that all cryptocurrencies, other than Bitcoin, are securities will suffer a major setback. Either way, a decision in this case will lead to greater regulatory clarity and certainty.

The case has also raised questions about the SEC’s approach to regulating cryptocurrencies. Some within the industry have criticized the SEC for its lack of clarity regarding the regulatory status of cryptocurrencies, arguing that the agency has been slow to provide guidance and has not kept pace with the rapid growth and evolution of the industry. Others have criticized the SEC for its perceived inconsistency in its approach to regulating cryptocurrencies, with some arguing that the agency has been overly aggressive in its enforcement actions against certain projects while ignoring others.

Regardless of the outcome of the case, it is clear that the regulatory landscape for cryptocurrencies is still evolving and uncertain. While some countries have taken a more progressive approach to regulating cryptocurrencies, the United States has been slower to provide clear guidance and establish a regulatory framework for the industry. The Ripple vs. SEC case is just one example of the challenges and uncertainties that the cryptocurrency industry faces as it seeks to mature and gain wider acceptance.

https://finbold.com/ripple-v-sec-court-case-update-as-of-april-3-2023/

https://forkast.news/headlines/sec-charges-beaxy-cryptocurrency-platform-for-violating-securities-laws/

https://bitcoinist.com/ripple-sec-xrp-foia-request-jp-morgan-delayed/

https://www.jdsupra.com/legalnews/cryptocurrency-companies-should-expect-2656781/

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Don’t Panic! How to Get an IRS Extension FAST

Bitcoin Breaks $30,000

New IRS Plan: Promises, Promises

They Call Him Danny

The Battle for Crypto Clarity

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