AI & IRS – Beware!

February 2, 2023 by admin

Wednesday February 1, 2023 – As artificial intelligence (AI) continues to improve, the federal government is making great strides towards keeping up with the ever-increasing speed of change. This includes the Internal Revenue Service (IRS). The IRS is undergoing a computing revolution in which artificial intelligence and other software advancements will be implemented. These advances will drastically change how the IRS operates, allowing them to monitor income transactions more closely than ever before, bringing with it an increased chance of audits or penalties if you fail to follow their regulations.

Business owners need to stay ahead of these changes, familiarizing themselves with current regulations and preparing for any future updates that may come their way. Even if you follow all the rules now, it’s possible that you could get caught off guard by new technology-driven policies that you were unaware of before. It pays to be prepared!

How to Protect Yourself

The best way to protect yourself from being audited or penalized by the IRS is education and due diligence. Familiarize yourself with all aspects of tax law so that when changes occur (and they will!) you know exactly what’s expected of you as a business owner. Make sure that your records are accurate and up-to-date; double check your math and keep records organized so they can easily be accessed if needed. Additionally, consider investing in an audit protection plan or consulting with Opem Tax Advocates, Inc.—this could save time, money, and headaches down the line!

It’s no surprise that technology has drastically changed our lives over the past decade; everything from communication to travel has been transformed by advances in computing power and artificial intelligence capabilities. Now, these same technologies are also transforming how governments operate—including how we manage taxes here in America. As a business owner, understanding how this revolution affects your bottom line is essential for staying on top of your taxes—and avoiding any unpleasant run-ins with Uncle Sam! With knowledge comes power; educate yourself on current tax laws so that when changes come around (and they will!) you’re ready for whatever new regulations may exist. With preparation comes peace of mind!

If you are already fighting a tax problem, consider attending a FREE Tax Workshop hosted by Attorney Steven A. Leahy of Opem Tax Advocates, Inc. Go right now to FightBackNow.com to secure your seat at the FREE Tax Workshop. Seats are limited and fill up fast. There’s no time to waste FightBackNow.com

https://thehill.com/opinion/finance/3832574-coming-soon-irs-on-big-tech-steroids/

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

Crypto Losses? Tax Gains!

February 1, 2023 by admin

Crypto-Tuesday January 31, 2023 – If you’re like most crypto enthusiasts, you’re probably not too thrilled about the recent losses in the market. But did you know that there may be a silver lining? In some cases, your crypto losses can actually lead to tax gains! Here’s how it works…

When you sell cryptocurrency, the proceeds are considered a capital asset and could be subject to either short-term or long-term capital gains taxes. Short-term capital gains are taxed as ordinary income, meaning that they’re subject to your marginal tax rate. Long-term capital gains, on the other hand, receive preferential tax treatment and are taxed at a lower rate than ordinary income.

Fortunately, when it comes to crypto losses, the Internal Revenue Service (IRS) gives you the ability to deduct them from your other gains in the same tax year. This means that if you have a net loss of cryptocurrency during the year, you can use it to offset any other gains you may have made, reducing the amount of taxes you owe.

The good news is that these losses can also be carried forward to future tax years. This means that if your losses exceed your other gains during a given year, you can still deduct them from your taxable income in future years.

Ultimately, it pays to know the tax implications of your cryptocurrency losses and how they can be used to offset other gains. By doing so, you could be saving yourself some coin when Tax Day rolls around!

Attorney Steven A. Leahy reveals the Crypto-Tax secrets on Today’s Tax Talk!

https://www.cnbc.com/2023/01/30/how-to-handle-cryptocurrency-losses-on-your-2022-tax-return.html

https://www.wpsdlocal6.com/news/concern-grows-for-cryptocurrency-industry-in-new-year/article_99be2f2e-a173-11ed-905d-933bae3bc6bf.html

IRS “Truck” Coming

January 30, 2023 by admin

Monday January 30, 2023 – The IRS recently announced a delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K. Tax year 2022 will be a “Transition” year.

As one tax expert put it, “the new changes constituted one of the largest ‘cash grabs’ by the IRS in recent memory and were likely to hit taxpayers ‘like a truck.’

On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act of 2021. Let’s take a look at how this new law could potentially impact taxpayers.

One area the reporting requirements will hit hard is fantasy sports players. They must report any payments they make over $600 to both the IRS and those receiving payment.

Previously, TPSOs had to report payments only if they were over $20,000 or more in value. A TPSO is defined as any business entity or person who processes credit card payments and/or engages in other activities related to money transfers and various other financial transactions.

Therefore, anyone engaging in fantasy sports leagues where cash payouts are made and processed via a third-party would be subject to these reporting requirements. These players will face increased chances of an audit or taxation. While the IRS has promised not to go after average taxpayers, this new law could target them, nonetheless.

Changes brought about by the American Rescue Plan Act of 2021 have direct implications on ALL taxpayers. The lower reporting threshold means increased 1099s being filed with the IRS and higher chances of audit or taxation.

Attorney Steven A. Leahy will evaluate the impact of the American Rescue Plan Act of 2021’s tax plan on the average American taxpayer on Today’s Tax Talk.

https://www.foxnews.com/media/irs-cash-grab-fantasy-sports-hit-americans-like-truck-tax-experts

Attorney George Bellas

January 27, 2023 by admin

Friday January 27, 2023 – Attorney George Bellas joins us today. Attorney Bellas has a very long resume and is well versed in litigation, technology, and marketing, . In our last interview we covered class action law suite, jury selection, Citizen’s United and other areas. You can catch that interveiw here:

Today, I will ask Attorney Bellas about advice for new lawyers and law students, what he thinks makes a good attorney, and anything else that may interest him on today’s Trust Radio Network Law Library interview.

Join Attorney Steven A. Leahy and Attorney George Bellas for thoughtful conversation about the law and other interesting topics.

Toth Hurts – IRS Unfairness

January 27, 2023 by admin

Thursday January 26, 2023 – The United Supreme Court declined certiorari on the case Toth vs. United States. Certiorari is the process by which an appellate court has the discretion to review decisions made by trial courts.

Becase the Supreme Court refused to hear this case the appellate court’s decision stands. And that decision stinks! I think a clear violation of the Eighth Amendment to the Constituion. The Eight Amendment simply says “Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.”

Justice Gorsuch dissented from the denial of certiorari. Monica Toth, an American citizen who failed to report a foreign bank account as required by law. The Internal Revenue Service assessed a civil penalty against Ms. Toth for her failure to report, which she argued violated her rights under the Excessive Fines Clause of the Eighth Amendment.

Justice Gorsuch noted that protection against excessive punitive economic sanctions is “fundamental” and “deeply rooted in this Nation’s history and tradition”. He further argued that it would be wrong for governments to evade constitutional scrutiny by labeling fines as “civil” rather than “criminal”.

In addition, he pointed out other reasons why taking up this case was worth consideration such as incentivizing governments to impose exorbitant civil penalties and clashing with original understanding of Eighth Amendment.

Some Judges write for other Judges to help them understand the legal basis for a certain ruling, or even provide their own interpretation of an existing law. This can help inform future decisions on similar cases, since the opinion can serve as precedent.

Some judges write with lawyers in mind, crafting legal opinions that are complex and highly technical, so that attorneys can use them as powerful tools when advocating for their clients.

Some judges write for the public, with the intention of making legal opinions easier to understand and more accessible to a wider audience.

Justice Gorsuch writes for the public.

Attorney Steven A. Leahy reviews Justice Gorsuch’s opinion on Today’s Tax Talk.

https://reason.com/2022/08/30/this-grandmother-didnt-submit-the-proper-banking-form-now-the-irs-wants-2-1-million-from-her/

https://reason.com/2023/01/23/supreme-court-declines-case-challenging-excessive-irs-penalties/

https://www.reuters.com/legal/government/us-supreme-courts-gorsuch-dissent-calls-217-mln-tax-penalty-excessive-2023-01-23/

https://news.bloomberglaw.com/us-law-week/supreme-court-punt-in-tax-fine-case-leaves-uncertainty-in-wake

AI & IRS – Beware!

Crypto Losses? Tax Gains!

IRS “Truck” Coming

Attorney George Bellas

Toth Hurts – IRS Unfairness

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