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IRS “Hurry up & Wait”

February 10, 2023 by admin

Thursday February 9, 2023 – As tax season begins, the IRS has yet to decide an important question: are state payments or refunds received in 2022 taxable? So, The IRS is asking people to hold off filing their Tax Returns.

The Internal Revenue Service (IRS) tells us they have been working for months with state tax officials about these special payments and refunds that were made available by some states in 2022.

“The IRS is aware of the complexity surrounding these payments and is doing its best to provide additional information that will help taxpayers make an informed decision.” In the meantime – Hurry up and Wait.

The Sixteenth Amendment to the Constitution proclaims, “Congress shall have power to lay and collect taxes on incomes, from whatever source derived.” There are, however, some statutory exceptions. Do these state rebate checks fit into the exceptions? The IRS doesn’t know yet.

The IRS tells taxpayers “the rules surrounding them are complex.” In the meantime “the IRS recommends [taxpayers] wait until additional guidance is available.” “[T}he best course of action is to wait for additional clarification on state payments rather than calling the IRS.”

Attorney Steven A. Leahy looks at the IRS February 3, 2023 Statement on Today’s Tax Talk.

https://www.irs.gov/newsroom/irs-statement-taxability-of-state-payments

https://www.nationalreview.com/corner/the-irs-fails-at-the-basics/

https://www.marketplace.org/2023/02/09/were-last-years-state-payments-taxable-taxpayers-in-24-states-wait-while-the-irs-decides/

https://www.fatherly.com/news/wait-to-file-your-tax-return-irs-warns


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

Filed Under: Today's Tax Talk Tagged With: IRS, State Tax

TIPS – To Insure Proper Service

February 9, 2023 by admin

Wednesday February 8, 2023 – The Treasury Department and Internal Revenue Service have announced the proposed Service Industry Tip Compliance Agreement (SITCA) program. A program designed to improve compliance with tip reporting regulations.

The SITCA program would monitor employers’ compliance by using their point-of-sale systems and allowing them to adjust tipping practices from year to year. Participating employers would demonstrate compliance by submitting an annual report after the close of the calendar year and receive protection from liability under applicable tax law.

This is part of the Administration’s plan to make sure no one making under $400,000.00 per year pays even $1 more in taxes. This rule focusing on waitresses will make sure the rich pay their fair share.

Attorney Steven A. Leahy reviews the State of The Union and the IRS focus on TIPS on Today’s Tax Talk.

https://www.foxnews.com/politics/bidens-irs-plans-crack-down-waiters-tips

https://www.irs.gov/newsroom/irs-introduces-new-service-industry-tip-reporting-program

https://www.denver7.com/news/national/irs-considering-changing-how-tipped-employees-report-tips


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

Filed Under: Today's Tax Talk Tagged With: IRS, SOTU, TIPS

Blockchain – Tokenized

February 7, 2023 by admin

Crypto-Tuesday February 7, 2023 – Tokenizing assets like stocks, bonds and real estate has been an idea bandied about within the financial services industry for years. Blockchain-based platforms such as Ethereum are now leading the way to do just that.

Tokenized blockchains are used to expedite financial transactions and create new opportunities for smart contracts, asset tokenization and decentralized financing.

It’s now up to big banks and financial institutions to show consumers that tokenization is secure, cost-efficient, and compliant with existing regulations. With their deep pockets and government-mandated external oversight, they’re the ones best positioned to do it.

As Ronald Reagan said, “Trust, but verify.” It’s time for big banks to put their money where their mouth is—literally—and prove that tokenization is the way of the future. Through this process, they have an opportunity to gain back the trust of consumers and investors who are skeptical about digital assets in general. With tokenization, America’s biggest banks can lead a revolution that not only changes how we transact with each other, but also rebuilds confidence in our financial system—one block at a time. When done correctly, it can open up new opportunities for all of us.

Attorney Steven A. Leahy examines tokenizing assets and blockchain technology on Today’s Tax Talk.

https://www.forbes.com/sites/ninabambysheva/2023/02/07/how-mastercard-goldman-sachs-and-other-tradfi-titans-are-using-blockchain-to-rewire-global-finance/?sh=621332f8339f

https://decrypt.co/120639/institutional-trader-survey-jp-morgan-crypto-artificial-intelligence


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

Filed Under: Cryptocurrency Tagged With: blockchain, cryptocurrency, Tokenized

IRS Withholding

February 7, 2023 by admin

Monday February 6, 2023 – The IRS collects taxes from every paycheck issued. This is called withholding and it’s how most Americans pay their taxes. America is a “Pay as you go” system.

The idea is for employers to withhold an estimated amount of money from each paycheck that reflects what you owe in taxes; when you file your return, the difference between what was withheld and what you actually owe is either refunded to you or requested from you.

The problem is that the amount withheld is based on your income estimates for the year, and with wages increasing, many people are facing a surprise—instead of getting a refund, they owe money come April 18.

The good news is that you can adjust your withholding so it more closely matches what you owe when tax time rolls around. Talk to your payroll department or consult with a tax professional to figure out how to make sure you’re not giving away money in the form of a refund that you would have been better off using in your regular budget. That way, when Tax Day comes around, you’ll be prepared.

Pay attention to the amount withheld from each paycheck and make the necessary adjustments throughout the year to ensure that come tax time, you won’t be in for a shock. When it comes to taxes, knowledge is power. Take the time to understand your individual tax situation and make sure you’re withholding the right amount from each paycheck—so you can keep more of what’s rightfully yours.

After all, there’s no better way to celebrate Tax Day than with a little extra money in your pocket. Happy filing

https://www.thestreet.com/dictionary/w/withholding

https://www.mississippivalleypublishing.com/the_hawk_eye/the-irs-tightens-the-screws-on-the-gig-econimy/article_8d822b3a-a3d9-11ed-836a-9368abad0b67.html

https://www.fightbacknow.com


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

Filed Under: Today's Tax Talk Tagged With: IRS, Withholding

Digital Privacy & The IRS

February 3, 2023 by admin

Thursday February 2, 2023 – As Ronald Reagan once said: “Freedom is never more than one generation away from extinction.” Americans, rely on the government to keep us safe and secure, but we also expect our Constitutional rights to remain intact. The Internal Revenue Service’s (IRS) ability to gather taxpayer financial records without a warrant is unconstitutional and a blatant violation of our Fourth Amendment rights and an affront to the freedoms we hold dear.

Our Constitution recognizes our privacy for good reason—to protect us from government interference in our personal lives. Yet, when it comes to tax investigations, courts essentially give carte blanche authority to the IRS allowing them to seize and search through private financial information without regard for constitutional limits.

Digitization has only made this problem worse; with the IRS able to access digital records with relative ease, it has become increasingly difficult for taxpayers to protect their own financial information from unwarranted invasion. Yet Congress continues to pass legislation that grants the IRS even greater powers when it comes to collecting taxes, including bills requiring reporting on payments as low as $600 and providing chauffeurs for the IRS commissioner.

To deny Americans their right to privacy undermines centuries-long victories safeguarding liberty and diminishes our national character altogether; something every American should be fighting against before it’s too late!

Attorney Steven A. Leahy examines the IRS invasion of taxpayer privacy on Today’s Talk Talk.

https://www.nationalreview.com/2023/01/an-irs-that-is-above-the-law-threatens-taxpayers-security/
https://www.nationalreview.com/2023/01/will-the-irs-lose-its-80-billion-appropriation/?utm_source=recirc-desktop&utm_medium=article&utm_campaign=river&utm_content=next-article&utm_term=first

https://www.jpost.com/business-and-innovation/banking-and-finance/article-730308

https://www.fightbacknow.com/


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

Filed Under: Today's Tax Talk Tagged With: digital privacy, IRS, privacy

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