One of the most popular crypto-currencies available today is Bitcoin. Launched in 2009, this digital currency is similar to real currency in that it holds value which can be used to buy goods and services. More noticeable, however, are some of the key differences between Bitcoin and real currency:
Bitcoin operates independent of a central bank;
Bitcoin does not have legal tender status by any government; and
Bitcoins are treated as property by the IRS for tax purposes.
Continue reading "Wanted: Guidance for Bitcoin Tax Compliance" »
With a new leadership team in place, the Internal Revenue Service Exempt Organizations Division has swiftly come together to introduce a shorter and easier application form (Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code) for organizations seeking section 501(c)(3) tax-exempt status. The IRS estimates up to 70% of all applicants will qualify to use the new streamlined approach.
Prior to the form’s July release, Tamera Ripperda, IRS Exempt Organizations Division’s newly appointed director, shared insights with CPAs at the AICPA Not-For-Profit Industry Conference and explained the significant role the simplified form will play in the new IRS transition process her team has internally dubbed: “Moving Exempt Organizations Forward.”
Continue reading "How the IRS Revamped Tax-Exempt Applications" »
In 2005, when Hurricane Katrina hit landfall along the Gulf Coast, the Katrina Emergency Tax Relief Act of 2005 (H.R. 3768) was introduced and passed by Congress in less than two weeks.
Unfortunately, this prompt response is not the standard model each time a disaster occurs. Relief offered through the tax system varies, and as explained in the AICPA’s comment letter submitted to Congress last November, “this process results in taxpayers receiving different treatment for similar losses and not knowing what tax treatment they will receive until Congress enacts some form of relief, which frequently occurs long after the disaster.”
Continue reading "Tax Relief for Disaster Victims: We Can Do Better, Sooner" »
you have tax clients who run small businesses or decided to sell their
household items on eBay this past year? Or perhaps you are a CPA who accepts
credit card payments from your clients? If so, you may have already received a notice
from the IRS or should be aware of the latest updates on the IRS push for information
matching with Form 1099-Ks (Payment Card and Third Party Network Transactions).
Some AICPA members have received 1099-K mismatch notices assessing thousands of
dollars in penalties.
Continue reading "To Match or Not to Match? 1099-K Notices Bewilder Taxpayers" »