Cryptocurrency Exchange ordered to release customer information

A cryptocurrency exchange was ordered by a U.S. District Court to provide the IRS with customer names and information about certain transactions. Specifically, it must disclose any transaction that equaled at least $20,000 in a year between Jan. 1, 2016 and Dec. 31, 2020. Among other details, the company must turn over user birth dates, […]

US Tax Court denies Tax Credit

In a recent case, the U.S. Tax Court found that multiple shareholders in an S corporation weren’t entitled to a flowthrough of the research credit on their personal tax returns. The $501,531 tax credit was claimed by the air pollution control systems business in connection with 19 projects. The court ruled that the research expenses […]

Starting a business? How expenses will be treated on your tax return

Government officials saw a large increase in the number of new businesses launched during the COVID-19 pandemic. And the U.S. Census Bureau reports that business applications are still increasing slightly (up 0.4% from April 2023 to May 2023). The Bureau measures this by tracking the number of businesses applying for Employer Identification Numbers. If you’re […]

Is your “Home Office” deductible?

With so many people now working from home, they may refer to their workspaces as “home offices.” But does that space qualify them for home office tax deductions? Indeed, there are specific requirements workspaces must meet to qualify for deductions. For example, a portion of the home must be available for the exclusive use of […]

Are your business expenses substantiated?

The tax code, specifically Section 162(a), allows businesses a tax deduction for “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” The hitch is that the expenses must be business related and properly substantiated. In one case, the U.S. Tax Court ruled that a married couple […]

That email or text from the IRS: It’s a scam!

“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly. Important: The IRS will never contact you by email, […]

IRS rules on private foundations

Tax-exempt private foundations that award scholarships and grants must meet certain requirements. The IRS recently issued private letter rulings for three foundations. One, which makes grants to alumni of certain schools, won’t be taxed on related qualified expenses. A second foundation makes awards to dependents of its employees for college. It won’t be taxed on […]

Deficit projections

Fiscal challenges are ahead for the United States, according to the Congressional Budget Office (CBO). Each year, the nonpartisan CBO publishes its projections of where the federal budget and the economy will be in 30 years, based on current laws. Overall, the CBO foresees that large, sustained deficits will lead to high and rising debt, […]

Turning receivables into cash

It’s common for high-growth and seasonal businesses to have occasional shortfalls in their checking accounts. The reason relates to the cash conversion cycle — that is, it takes time to collect on customer invoices. In the meantime, of course, employees and suppliers want to get paid. The “cash gap” is currently getting wider for many […]

AICPA expresses need for NFT guidance

In a June letter to the IRS, the American Institute of CPAs (AICPA) responded to IRS Notice 2023-27 about non-fungible tokens (NFTs). In it, the organization expressed a need for additional guidance and made several recommendations. Among the AICPA’s suggestions to the IRS and U.S. Treasury Department were that the agencies should: clarify and define […]