Tax Reporting Requirements for Gifts

For gifts over $16,000, or multiple gifts totaling at least $16,000, the IRS requires the transaction(s) to be reported in tax filings each calendar year. Depending on the circumstances of the donor, this obligation may fall upon you. The penalties for failing to file can be steep, so ensuring that the gift is properly reported is always in your best interest. Who Has to Report the Gift? The reporting Read More

The Aftermath of a Federal Search Warrant – How Do I Get My Stuff Back?

On a normal quiet early morning there’s suddenly a bang at your door, and the next thing you know, there are fifteen federal law enforcement agents searching every nook and cranny of your home. They take computers, documents, and some items that shouldn’t be relevant to an investigation even by the furthest stretch of the imagination. You’re likely stressed, and left wondering what to do next. Thankfully, you’re on Read More

The Crime-Fraud Exception May Pose Trouble for Your Case (And Your Lawyer)

In 2018, the crime-fraud exception to attorney-client privilege was brought into the spotlight when former president Donald Trump tweeted “Attorney-client privilege is dead!” after the FBI conducted a search of the office of his attorney, Michael Cohen. Regardless of the details of the Cohen case, the crime-fraud exception has become a more pervasive issue in recent years posing a threat to attorney-client privilege Read More

What Happens if I Underpay My Taxes?

As we’re all well aware, the IRS isn’t very lenient when it comes to the collection of taxes. If you underpay, you will find yourself paying off a growing debt, as the IRS adds interest and penalties to your already outstanding debt. If you’re facing IRS tax liabilities, you’re likely not alone - in 2018, it was estimated that over 30 million taxpayers would owe taxes due to under-withholding and the United States’ Read More

New Cryptocurrency Reform Promises Fairness for Digital Currency

After several years of apathy toward regulating cryptocurrency, and then a period of blanket regulations placed against digital currency, we’re finally beginning to see the advent of a new attitude towards the regulation of digital assets. With a greater understanding of the currencies and how they operate, lawmakers finally seem willing to work with laws that are specific to the issues that digital currencies face, Read More

The Dangers of Dancing with Frivolous Tax Arguments

Most people don’t get excited to pay their taxes - for most, it’s quite the opposite. There are a few who decide to take a stand against the IRS with less-than legitimate claims, known as frivolous arguments. While standing up to the IRS in cases of injustice is an important part of keeping our tax systems in check, these frivolous arguments are not constructive, and in fact, may lead to even more penalties than what Read More

American Rescue Plan Creates New Tax Reporting Requirements for Payment App Users

Apps like PayPal, Venmo, or CashApp have made it much easier for small businesses to take payments for their services, but as far as the IRS is concerned, they have also made it easier for small businesses to commit fraud. Included in the American Rescue Plan, passed in 2021 and put into effect at the start of 2022, is a new law changing tax reporting requirements for third-party payment apps. Previously, if you or Read More

IRS Stuck in 2021’s Tax Returns and 1997’s Technology

2021 was a difficult year for many of us, the IRS included. For an organization that was already facing budget cuts, more incoming work, and outdated technology, the events of last year may have proven to be too much. Many Americans still have not received their refunds from 2021, and are concerned they may not see their 2022 refunds for a long time. The issue stems from funding, computer systems, and old habits of Read More

The Time that Miniature Donkeys Made Their Impact on The Tax Code

It’s not every day that we see cases like these. William Huff, a hedge fund manager, had a miniature donkey-breeding venture that he started to create income for his adult daughter. In 2013 and 2014, the farm generated losses totaling about $134,000. This alerted the IRS, who believed that the intent of the business was not to generate profit, but as a hobby of Mr. Huff’s. This led Mr. Huff down a rabbit hole of Read More

Marijuana Dispensaries’ Conflict With the IRS

Marijuana dispensaries are very much in a grey area of legality. A marijuana dispensary in Colorado is subject to employment and income taxes, does daily business, and abides by local and state laws just like every other business. On the federal level, however, they are still considered illegal due to drug trafficking laws. Because of this, dispensaries are subject to interference from federal organizations like the Read More