The IRS published final regulations on information reporting obligations for certain DeFi participants and, on the same day, the Blockchain Association, Texas Blockchain Council, and DeFi Education Fund filed a lawsuit in the Northern District of Texas claiming violations of the Administrative Procedures Act and the U.S. Constitution.
My previous article provided a
The U.S. tax system requires taxpayers to report their income and expenses on an annual accounting basis (e.g., a calendar year). Because taxpayers may have profits in some years but losses in others, this reporting requirement can sometimes cause financial distortions. For example, a taxpayer with a business loss of $100,000 in 2023
Final regulations on informational reporting obligations for custodial brokers were published in the Federal Register on July 9, 2024 with an ominous note that the information reporting requirements for non-custodial brokers (i.e. Decentralized Finance or DeFi) would be forthcoming. The first effective date for those final regulations would be January 1, 2025. On December 27
An old German proverb states that “to change and to change for the better are two different things.” As 2024 ends, the legal and business communities who must navigate government scrutiny are seeing the signs of change in the regulatory landscape on the horizon. The pencils for redrawing the lines of government involvement in economic
Given the size of the government, it is no surprise that the IRS often has an advantage over taxpayers in tax controversy matters. Indeed, the agency has an army of specialized attorneys on its payroll to defend tax actions in the federal courts. To alleviate some of this imbalance, Congress enacted section 7430, which
Monetizing intellectual property (IP) presents complex tax challenges, particularly in determining whether proceeds are taxed at favorable capital gains rates or higher ordinary income rates. Sales of IP assets must transfer substantial rights to qualify for capital gains treatment, while income from licensing agreements is generally taxed as ordinary income. These distinctions require careful transaction
On December 12, 2024, Frank Richard Ahlgren III of Austin, Texas, was sentenced to two years in prison for filing a false tax return, marking the first legal-source cryptocurrency income tax case. The case has garnered attention for its significance in cryptocurrency tax enforcement, as it represents a prosecution based purely on tax issues rather
Federal payroll obligations imposed on employers can be expensive and time-consuming. Therefore, it is not uncommon for companies to outsource these responsibilities to third parties referred to as “third-party payers” (TPPs). Under a TPP arrangement, the TPP deducts, withholds, and remits employment taxes and prepares and files the corresponding employment tax returns on behalf of
With the holiday season officially upon us, the Dollars and Sense team wants to make sure you maximize your giving and gifting! For so many businesses, and business owners, this time of year also means employer festivities, and gifting, are about to be in full swing.
For business relationships, there is a tax upside: customer
In recent headlines, an Ohio woman has brought a refund suit in district court, seeking recovery of taxes and withholding from the IRS that she claims were based on the improper return filed by her abusive ex-boyfriend. The ex-boyfriend fraudulently filed his 2015 tax return listing her as his spouse and her child as a