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The IRS has announced that it will not require businesses that receive digital assets with a fair market value (FMV) in excess of $10,000 in a transaction, or series of transactions, to file information reports until regulations are issued. The move postpones the implementation of legislation that added digital assets to the definition of cash […]

Question: Joe Williams, a new tax professional, agrees to represent a friend who is not his client, Wanda Round, in an IRS audit of her small business that operates as a sole proprietorship. The IRS is requesting all actual receipts for her claimed business expenses. Wanda explains that she scans her receipts into commercially available

Tax season 2024 is here and millions of Americans are at a crossroad – deciding between handling their tax returns on their own or through contracting a tax professional. While we always think there’s value in using a knowledgeable and reputable tax professional to prepare your return, there are some taxpayers who have a simple

Question: Pastor Smith is retiring from a church where he served as minister for the past 30 years. The church presented him with $8,000 a special occasion cash gift for his retirement. Is this taxable to Smith? Answer: It depends on whether the gift meets Rev. Rul. 55-422’s requirements. If both the church and Smith

An often overlooked tax law change that went into effect Jan. 1 is the new information reporting requirement for entities or individuals who receive digital assets with a fair market value (FMV) in excess of $10,000 in a transaction, or series of transactions, in the course of a trade or business. Recipients must report the

Question: Joey filed a joint return on Form 1040 for 2022 with taxable income of $45,000. His itemized deductions were $26,350, comprised mostly of medical expenses. The standard deduction that he could have claimed was $25,900. Joey’s total itemized deductions exceeded the standard deduction by $450 ($26,350 – $25,900). In 2023 he recovered $2,100 of

With mandatory beneficial ownership information (BOI) reporting beginning this year, it is an excellent time to consider what this may mean to tax professionals and their business clients. The BOI filing obligations under the 2021 Corporate Transparency Act (CTA) appear to be reasonably straightforward, but tax preparers need to understand that there may be legal

Question: Cliff works as a furniture salesman. Each year, he receives a W-2, Wage and Tax Statement, from his employer. When he sells a certain number of furniture pieces at the store, he also earns an incentive bonus from the manufacturer. The bonus is reported to him on Form 1099-MISC, Miscellaneous Information. Should this Form

IR-2023-253, Dec. 29, 2023 WASHINGTON — The Department of the Treasury and the Internal Revenue Service issued Notice 2024-13 announcing that the IRS intends to propose regulations to implement the product identification number (PIN) requirement with respect to the energy efficient home improvement credit. Beginning Jan. 1, 2023, the energy efficient home improvement credit allows for

Question: Pepé is a casual gambler and went to the casino several times throughout the year. His total gambling winnings for the year are $3,500. On the advice of his accountant, he kept a detailed log of all the transactions related to his gambling. At the end of the year, he determined that he had