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The Act includes several tax provisions that aim to provide relief to individuals and businesses impacted by the COVID-19 pandemic. Here are a few: Businesses Paycheck Protection Program (“PPP”): Forgiven PPP loans are not taxable income and have no effect on business basis for tax purposes. Deductions are… Read More

With legislation passed at the end of 2020, the IRS has officially reversed its prior guidance, Revenue Notice 2020-32, and will now allow federal income tax deductions for expenses paid with forgiven PPP loans. Previously, the IRS sought to avoid “double-dipping”, where if a taxpayer receives tax-free income… Read More

In the IRS’s Progress Update, Fiscal Year 2020, “Putting Taxpayer’s First”, it released important statistics and Agency priorities. Here are some highlights from the 44-page report. Tax Returns and Forms processed, $242M Collected taxes, $3.5T Average Refund, $2,034 Revenue from Enforced IRS Collection Actions, $51.1B IRS hiring of… Read More

FinCEN has already issued proposed regulations that would require banks and money service businesses to submit reports, keep records, and verify the identity of customers for transactions involving cryptocurrency with legal tender status (legal tender digital assets) held in “unhosted”, non-custodial, wallets. The enhanced recordkeeping concerning non-custodial wallets… Read More

The Financial Crimes Enforcement Network (FinCEN) has been busy over the last 30 days. In its latest Notice, it indicates that FinCEN wishes to amend the foreign bank account reporting regulations. The changes would require U.S. citizens to report cryptocurrency accounts held with foreign institutions (foreign exchanges) if… Read More

The IRS extends, until June 30, 2021, the period in which it will accept digitally signed and emailed documents due to the COVID-19 pandemic. While the IRS was shut down, millions of pieces of mail piled up in its mail room (they are still sifting through it). Because… Read More