In late 2022, the IRS announced that brokers will not be required to report or furnish additional information with respect to dispositions of digital assets, issue additional statements, or file any returns with the IRS on transfers of digital assets, until the IRS issues applicable final regulations. In the meantime, a broker may report gross…
Internal Revenue Code Section 6050I generally imposes reporting requirements upon any person who is engaged in a trade or business and, in the course of such trade or business, receives more than $10,000 in cash in one transaction or two or more related transactions. These transactions are reported on IRS Form 8300, which collects identifying…
H.R. 3684, known as the Infrastructure Investment and Jobs Act, passed the Senate on August 18th by a vote of 69–30 and now goes to the House of Representatives for consideration. To become law, the House must pass a companion bill and then the differences between the two must be worked out in committee prior…
The Treasury Inspector General for Tax Administration (TIGTA) found in a recent audit that it is difficult for the IRS to identify taxpayers with virtual currency activity due to a lack of third-party information reporting that specifically identifies virtual currency transactions. TIGTA recommended that the IRS continue efforts to close the virtual currency information gap…
Each February, the IRS releases its “dirty dozen” list of tax scams that are expected to plague US taxpayers in the coming year. For the past three filing seasons in a row, identity theft has made the top three (it was number one in 2013 and 2014 and expected to be again for 2016). Electronic…
The US Internal Revenue Service is currently accepting comments regarding the applicability of rules that govern reporting of so-called “Specified Foreign Financial Accounts” to virtual currencies (the agency’s preferred term for bitcoin et al). The rules governing the current reporting requirements, which replaced temporary rules in place since 2011, were released last December in Internal…
What if you don’t report all of your bitcoin gains on your US tax return? You must have at least considered it by now. How would the IRS know? I get this question from clients at least as often as I see it in print. It is a tempting proposition: last year, US taxpayers had…
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