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Showing posts from November, 2019

IRS issues new guidance on tax and reporting rules for virtual currency

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Press Release
FOR IMMEDIATE RELEASE



Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations

NEWPORT BEACH November 29, 2019 — As part of a wider effort to assist taxpayers and to enforce the tax laws in a rapidly changing area, the Internal Revenue Service today issued two new pieces of guidance for taxpayers who engage in transactions involving virtual currency.

Expanding on guidance from 2014, the IRS is issuing additional detailed guidance to help taxpayers better understand their reporting obligations for specific transactions involving virtual currency. The new guidance includes Revenue Ruling 2019-24 (here) and frequently asked questions (here).

The new revenue ruling addresses common questions by taxpayers and tax practitioners regarding the tax treatment of a cryptocurrency hard fork. In addition, a set of FAQs address virtual currency transactions for those who hold virtual currency as a capital asset.

"The IRS is commit…

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to Tax Evasion

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Press Release
FOR IMMEDIATE RELEASE

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to tax Evasion

NEWPORT BEACH November 23, 2019 -- James Roy McDaniel, 66, who pleaded guilty before United States District Judge S. James Otero to one count of tax evasion, is scheduled to be sentenced on February 3, 2020. At sentencing, McDaniel could receive a statutory maximum sentence of five years imprisonment.  Because this is his second criminal tax offense his chances of receiving a higher sentence are increased.

McDaniel was a licensed California attorney for more than two decades, until he pleaded guilty in late 2004 to one felony count of subscribing to a false income tax return. In 2005, McDaniel was sentenced to three years in federal prison for that crime, and he surrendered his license to practice law in California. In that case, McDaniel’s failure to report income resulted in a tax loss of $677,368 to the federal government, according to court documents. McDaniel’s ad…

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to Tax Evasion

Image
Press Release
FOR IMMEDIATE RELEASE

California Attorney, a Prior Tax Offender and Embezzler, Pleads Guilty to tax Evasion

NEWPORT BEACH November 23, 2019 -- James Roy McDaniel, 66, who pleaded guilty before United States District Judge S. James Otero to one count of tax evasion, is scheduled to be sentenced on February 3, 2020. At sentencing, McDaniel could receive a statutory maximum sentence of five years imprisonment.  Because this is his second criminal tax offense his chances of receiving a higher sentence are increased.

McDaniel was a licensed California attorney for more than two decades, until he pleaded guilty in late 2004 to one felony count of subscribing to a false income tax return. In 2005, McDaniel was sentenced to three years in federal prison for that crime, and he surrendered his license to practice law in California. In that case, McDaniel’s failure to report income resulted in a tax loss of $677,368 to the federal government, according to court documents. McDaniel’s ad…

IRS Increases Enforcement of Syndicated Conservation Easements

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Press Release
FOR IMMEDIATE RELEASE



IRS Increases Enforcement Action on Syndicated Conservation Easements

NEWPORT BEACH November 18, 2019 -- While speaking at the American Institute of CPAs (AICPA) 2019 National Tax Conference in Washington, D.C., IRS Commissioner, Rettig, and IRS Chief Counsel, Desmond, both separately underscored the IRS’s increased enforcement efforts toward abuses of certain tax-advantaged land transactions under Code Sec. 170(h)..

Rettig stated that the IRS appreciates the value of conservation easements, but it does not appreciate the activities that have gone on with respect to the syndicated conservation easements -- there are some artificial appraisals there… some fatal flaws.

Rettig, reiterating the IRS’s tough stance on the matter, as noted in IRS press release dated November 12, said that the IRS is not going to "stand down." The information issued in the November 12 news release was "fair warning," Rettig said. Likewise, IRS Chief Counsel, …

IRS updates guidance for deductible business, charitable, medical and moving expenses

IR-2019-183, November 14, 2019


WASHINGTON — The Internal Revenue Service today issued guidance for taxpayers with certain deductible expenses to reflect changes resulting from the Tax Cuts and Jobs Act (TCJA).

Revenue Procedure 2019-46 (PDF), posted today on IRS.gov, updates the rules for using the optional standard mileage rates in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

The guidance also provides rules to substantiate the amount of an employee's ordinary and necessary travel expenses reimbursed by an employer using the optional standard mileage rates. Taxpayers are not required to use a method described in this revenue procedure and may instead substantiate actual allowable expenses provided they maintain adequate records.

The TCJA suspended the miscellaneous itemized deduction for most employees with unreimbursed business expenses, including the costs of operating an automobile for business purposes. Ho…

Steps to take now for 2020 filing Season

With 2019 almost over there are steps to take now for the 2020 filing season.

Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements. Because it's a refundable credit, those who qualify and claim EITC pay less federal tax, pay no tax or may even get a tax refund. EITC can mean a credit of up to $6,557 for working families with three or more qualifying children. Workers without a qualifying child may be eligible for a credit up to $529.

In addition to other requirements, to get the credit, people must have earned income and file a federal tax return — even if they don't owe any tax or aren't otherwise required to file.

Taxpayers should seek the advice of a tax professional to determine if they are eligible for EITC, determine if their child or children meet the tests for a qualifying child and estimate the amount of their credit.

Child Tax Cre…