All gains on cryptocurrencies are capital gains. However, not all losses are deductible. A taxpayer’s losses are not deductible on cryptocurrencies if the taxpayer’s activities are infrequent and do not rise to the level of investment activities. Instead, the taxpayer’s virtual currency transactions may be treated as “personal”… Read More
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Taxpayer Friendly IRM Changes to CDPs
There is a new welcomed change to the Internal Revenue Manual (IRM) concerning Collection Due Process (CDP) Request deadlines. The old rule was that CDP Requests were determined to be timely when they were received by the correct IRS Office handling Appeals. The change to the IRM now… Read More
Less Concern over COVID 19 Tax Payments
A development in the taxpayer tax payments backlog. During the IRS closure due to COVID-19, the IRS accumulated backlog of millions of pieces of unopened mail in trailers set up outside IRS facilities. That resulted in significant delays in the processing of taxpayer’s tax payments. The IRS also… Read More
Digital World Meets the 1040X
Amended 1040 Tax Return may now be filed electronically. For the first time, the IRS is now permitting taxpayers to file their amended 1040X tax returns online through commercial tax software. This move certainly offers taxpayers more efficiency with their tax filing and processing but leaves open questions… Read More
Trump’s Payroll Tax Deferral.
President Trump issued a Memorandum deferring payroll tax obligations due to COVID-19. It directs the IRS to defer the withholding, deposit, and payment of the 6.2 percent employee’s share of Social Security taxes, between September 1 through the end of this year. Additionally, the IRS is also directed… Read More
New CDP Due Date Requirements
Recently, a change to the Internal Revenue Manual (“IRM”) makes clear that in order for a Collection Due Process (“CDP”) Hearing request to be timely, it must show a post-mark date on or before the stated CDP due date (if requested by mail – the request may also… Read More