USA taxation – Pilger Nebraska http://pilgernebraska.net/ Wed, 18 May 2022 20:42:38 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://pilgernebraska.net/wp-content/uploads/2021/10/icon-47-150x150.png USA taxation – Pilger Nebraska http://pilgernebraska.net/ 32 32 Ridley Township tax collector sentenced to one year for tax evasion | USAO-EDPA https://pilgernebraska.net/ridley-township-tax-collector-sentenced-to-one-year-for-tax-evasion-usao-edpa/ Wed, 18 May 2022 20:42:38 +0000 https://pilgernebraska.net/ridley-township-tax-collector-sentenced-to-one-year-for-tax-evasion-usao-edpa/ PHILADELPHIA — U.S. Attorney Jennifer Arbittier Williams announced that Rosezanna Czwalina, 70, of Morton, PA, was sentenced to one year in prison, one year of supervised release and was ordered to pay $112,846 in restitution by the United States District Court Judge Paul S Diamond for committing tax evasion. In June 2021, the defendant pleaded […]]]>

PHILADELPHIA — U.S. Attorney Jennifer Arbittier Williams announced that Rosezanna Czwalina, 70, of Morton, PA, was sentenced to one year in prison, one year of supervised release and was ordered to pay $112,846 in restitution by the United States District Court Judge Paul S Diamond for committing tax evasion.

In June 2021, the defendant pleaded guilty to five counts of filing materially false tax returns as part of its efforts to avoid paying its duly owed tax obligations. Czwalina, who had been the elected tax collector and treasurer of Ridley Township, Delaware County, Pennsylvania from 2009 until her resignation in 2021, was allowed to retain, in addition to her income, fees paid for tax certifications and generation of duplicate tax invoices. . However, the defendant did not report these withheld fees as income on its federal tax returns for the years 2014 through 2018.

“The US tax system provides essential government services to our people,” said US Attorney Williams. “Every time someone cheats the tax system, the burden of providing vital services increases for taxpayers who pay their fair share. As an elected official responsible for collecting taxes and managing public funds, this defendant knew her obligations and deliberately chose to ignore them.

“As the township’s tax collector, Czwalina was well aware of the importance of tax revenue to the proper functioning of government,” said Jacqueline Maguire, special agent in charge of the FBI’s Philadelphia division. “And yet, for years, she knowingly bypassed the federal system and its taxpayers by failing to report her true income. Elected officials must be held to the highest ethical standards and when their actions turn criminal, the FBI and our partners will not hesitate to investigate and hold them duly accountable.

“Honest taxpayers are fed up with Czwalina, who willfully ignored his legal obligation to pay his fair share of taxes year after year,” IRS Criminal Investigations Special Agent Yury Kruty said. “We hope the sentence she received will deter potential tax evaders.”

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and prosecuted by Assistant United States Attorney KT Newton.

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Senators introduce bill to deny tax credits to companies that pay Russian taxes https://pilgernebraska.net/senators-introduce-bill-to-deny-tax-credits-to-companies-that-pay-russian-taxes/ Mon, 16 May 2022 12:13:52 +0000 https://pilgernebraska.net/senators-introduce-bill-to-deny-tax-credits-to-companies-that-pay-russian-taxes/ The senses. Americans Ron Wyden (D-OR) and Rob Portman (R-OH) introduced legislation that would ban foreign tax credits for companies that pay taxes to the Russian government. © Shutterstock The law on supporting Ukraine through our tax code would deny foreign tax credits for income taxes paid to Russia or Belarus. If passed, they would […]]]>

The senses. Americans Ron Wyden (D-OR) and Rob Portman (R-OH) introduced legislation that would ban foreign tax credits for companies that pay taxes to the Russian government.

© Shutterstock

The law on supporting Ukraine through our tax code would deny foreign tax credits for income taxes paid to Russia or Belarus. If passed, they would join an existing list of countries already ineligible for foreign tax credits: North Korea, Iran, Syria and Sudan.

“American taxpayers should not subsidize the Russian war machine. Vladimir Putin continues to bomb civilians, and credible reports and solid evidence of war crimes, including the execution of civilians and forced deportations, emerge daily,” Wyden and Portman said in a joint statement.

The draft discussion of their bill has already been reviewed by stakeholders and outside experts. This bill reflects the changes resulting from those discussions.

“If companies choose to continue doing business in Russia and paying taxes to Putin’s government in the face of these atrocities, they should forfeit their foreign tax credits and deductions for taxes paid to Russia to the states. -United. Russian oligarchs and companies supporting Putin should also not receive tax advantages in the United States. These are mere proposals,” the senators said.

Wyden is the chairman of the Senate Finance Committee, while Portman also sits on the committee.

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Bharat Krishak Samaj – The New Indian Express https://pilgernebraska.net/bharat-krishak-samaj-the-new-indian-express/ Sat, 14 May 2022 07:12:00 +0000 https://pilgernebraska.net/bharat-krishak-samaj-the-new-indian-express/ By PTI NEW DELHI: Farmers’ body Bharat Krishak Samaj (BKS) on Saturday expressed dissatisfaction with the ban on wheat exports, saying restrictions on shipments of agricultural products are an “indirect tax” on farmers. Farmers will not be able to take advantage of high world prices, while India will lose credibility as a reliable trading partner, […]]]>

By PTI

NEW DELHI: Farmers’ body Bharat Krishak Samaj (BKS) on Saturday expressed dissatisfaction with the ban on wheat exports, saying restrictions on shipments of agricultural products are an “indirect tax” on farmers.

Farmers will not be able to take advantage of high world prices, while India will lose credibility as a reliable trading partner, he said.

“Unfortunately, India has banned wheat exports. Restrictions on agricultural exports are an indirect tax on farmers in the countries where they are imposed,” Bharat Krishak Samaj Chairman Ajay Vir Jakhar told PTI. .

Farm gate prices are controlled by policy and farmers cannot benefit from higher commodity prices while having to pay higher input costs, he added.

“Today, not only traders, but even farmers who hold stocks of wheat will lose out. These export bans are the reason why farmers do not trust market reforms. This adds to the trust deficit “, said Jakhar.

Given soaring food prices around the world, he said the UN had also called on nations not to make sudden announcements.

India is also losing credibility as a trading partner, he said.

“The lack of credible real-time data and analysis in government is why we are in this situation,” he said.

Jakhar said his association has long advocated for farmers to be compensated when they suffer loss due to government policy, as is the norm in the United States.

“I hope one day it will happen,” he said.

India has banned wheat exports with immediate effect as part of measures to control rising domestic prices, according to an official notification.

However, export shipments for which irrevocable letters of credit have been issued on or before the date of this notification will be permitted.

The government has revised down the wheat production estimate by 5.7% to 105 million tonnes for the 2021-22 crop year ending in June, from the previous projection of 111.32 million tonnes. , as crop productivity was affected due to the early onset of summer.

India’s wheat production stood at 109.59 million tonnes in the 2020-21 crop year (July-June).

The country exported 7 million tons of wheat in the last fiscal year.

India was looking to export 10 million tons this fiscal year.

Bharat Krishak Samaj (BKS) is one of the leading non-partisan farmer organizations in India advocating for farmer prosperity as well as healthy, sustainable, inclusive and equitable food systems that benefit both farmers and consumers.

BKS was established by Dr. Panjabrao S Deshmukh on April 3, 1955.

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Ryan Acquires Greystone Property Tax Advisors, Expanding U.S. Property Tax Advisory Services https://pilgernebraska.net/ryan-acquires-greystone-property-tax-advisors-expanding-u-s-property-tax-advisory-services/ Tue, 10 May 2022 11:11:00 +0000 https://pilgernebraska.net/ryan-acquires-greystone-property-tax-advisors-expanding-u-s-property-tax-advisory-services/ DALLAS–(BUSINESS WIRE)–Ryan, one of the world’s leading providers of tax services and software, announced the acquisition of Greystone Property Tax Advisors (“Greystone”), a property tax consulting firm located outside of Boston, Massachusetts. Greystone provides a single point of contact for client tax calls, reports and budgets, freeing up bandwidth to increase operational efficiency. “Our property […]]]>

DALLAS–(BUSINESS WIRE)–Ryan, one of the world’s leading providers of tax services and software, announced the acquisition of Greystone Property Tax Advisors (“Greystone”), a property tax consulting firm located outside of Boston, Massachusetts. Greystone provides a single point of contact for client tax calls, reports and budgets, freeing up bandwidth to increase operational efficiency.

“Our property tax team has grown significantly in the United States over the past two years,” said Ryan President and CEO G. Brint Ryan. “The addition of Greystone Property Tax Advisors enhances our property tax advisory capabilities and will benefit clients of both firms by combining industry-leading expertise and expanding market coverage across the country.”

Concurrent with the acquisition, William Quigley, Jr., Principal and Founder of Greystone, will join Ryan as Director of the Property Tax Practice with his team.

“I have enjoyed not only building the Greystone business, but growing it to scale while maintaining a rigorous commitment to the unique property tax needs of our clients, and with the world-class customer service and l Ryan’s award-winning work environment, we will continue to meet those needs,” said Quigley. “I am delighted to work alongside Ryan’s management team and my colleagues in the Boston office and I am also looking forward to adding value and expertise to their ever-growing property tax group. Their long and impressive track record in successfully acquiring and integrating property tax companies has been instrumental in our decision to join Team Ryan.

The acquisition of Greystone follows Ryan’s recent acquisition of Marvin F. Poer and company, the second largest property tax advisory firm in the United States. Combined, these two transactions expand the services available to Ryan’s property tax clients and further solidify Ryan as a leader in property tax consulting services in the United States.

About Ryan

Ryan, an award-winning global tax services and software provider, is the world’s largest firm dedicated exclusively to corporate taxes. With global headquarters in Dallas, Texas, the firm provides an integrated suite of federal, state, local and international tax services on a multijurisdictional basis, including tax recovery, advisory, advocacy, compliance and technology. Ryan is a 10-time recipient of the Customer Service Institute of America’s (CSIA) International Service Excellence Award for his commitment to world-class customer service. Strong in dynamics myRyan work environment widely recognized as the most innovative in the tax services industry, Ryan’s multidisciplinary team of more than 3,500 professionals and associates serves more than 18,000 clients in more than 60 countries, including many of the largest Global 5000 companies. More information about Ryan can be found at ryan.com. “Ryan” and “Company” refer to the global organizational network and may refer to one or more of Ryan International’s member companies, each of which is a separate legal entity.

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Biden offers biggest tax hike since LBJ – Corridor News https://pilgernebraska.net/biden-offers-biggest-tax-hike-since-lbj-corridor-news/ Sun, 08 May 2022 10:03:14 +0000 https://pilgernebraska.net/biden-offers-biggest-tax-hike-since-lbj-corridor-news/ By William Haupt III | The central square donor “People who complain about taxes can be divided into two categories: men and women.” -Will Rogers Every Democratic running for every office in the United States echoes a standard campaign theme: “I plan to tax the rich and spread the wealth around.” They chant that the […]]]>

“People who complain about taxes can be divided into two categories: men and women.” -Will Rogers

Every Democratic running for every office in the United States echoes a standard campaign theme: “I plan to tax the rich and spread the wealth around.” They chant that the rich aren’t “paying their fair share of taxes and it’s time they did.” They preach: “It is time to reduce income inequality. Their gospel is, “Those who have benefited most should help those who have benefited least.”

Who do leftists consider rich when they are obsessed with raising taxes? The Tax Policy Center indicates that about 10% of US households have incomes over $200,000. One-fifth pays 69% of all federal taxes. If “the rich” are already paying more than their fair share, why does the left always demand that they pay more? It’s the paradigmatic liberal axiom: “It’s time we punished the rich.”

Joe Biden ran for president on a ‘tax the rich’ platform and won a victory over populist Donald Trump. But he toned down the rhetoric for a few months while pushing for his quixotic “Build Back Better” dream. But in genuinely progressive form, he delivered the bad news to taxpayers last week. As Congress unpacked Biden’s wish list for 2023, it was “Christmas in the Spring” for Republicans.

Biden’s 2023 tax budget re-proposes all the bad ideas that Congress won’t pass and adds a new twist – “the coveted liberal wealth tax.” Biden is obviously pivoting further left to ignite sullen progressives for the midterm elections. This gives them new ammunition to attack the evil GOP.

“All we’re doing is leveling the playing field, making sure the rich pay their fair share.” -Joe Biden

Biden’s wishlist calls for raising the top marginal tax rate to 39.6% from 37%. It would also nearly double capital gains taxes to 39.6% for people earning over $1 million. This would be the highest tax rate on investment gains since the 1920s. The rate has never exceeded 33.8%.

The left calls it a “billionaire tax,” which is the standard progressive narrative. But the billionaires are not the only ones punished. It applies to income and “the increase in the annual value of assets”. This taxes “unrealized capital gains”, which are not taxed until the assets are converted into income. In other words, Elizabeth Warren and Bernie Sanders will receive the wealth tax they claimed.

This tax regime will greatly complicate the tax code and create huge investment distortions. Since liquid assets make up less than 20% of their wealth, investors will have an incentive to hold liquid assets, such as real estate, to avoid liquidating stocks to pay taxes. Rather than selling stocks to diversify or reinvest, investors will be forced to sell stocks to pay unrealized capital gains taxes.

Simply put, this means that hundreds of successful entrepreneurs and small business owners, who have accumulated wealth over decades through innovation and hard work, will be punished for their success. Any tax proposed by the left “always applies to a few” and expands to millions overnight.

“The IRS tax code is too difficult for a mathematician. It takes a philosopher. – Albert Einstein

News of Biden’s proposed tax hike swept through investment circles like an EF5 tornado. The S&P 500 immediately fell 1%, the biggest drop on Wall Street this year. Fund manager Thomas Hayes exclaimed, “If we thought this had a chance, the market would have lost 2,000 points.

There is another fly in the ointment in Biden’s tax system; it’s illegal! The Constitution states that Congress can only impose “direct taxes”. Although the 16th Amendment established an income tax, unrealized capital gains are not income. In other words, Biden is taxing “advance income?”

Wealthy Americans could face a headline federal capital gains tax rate of 43.4%, including net investment tax of 3.8% for those with incomes of $200,000 or more ($250,000 married filing jointly).

Currently, those earning over $200,000 pay a capital gains rate of an average maximum of 23.8%

Erica York of the Tax Foundation said Biden’s tax hike would drive U.S. capital gains taxes to the top of global rankings. Capital gains taxes in Europe average 19%. Denmark had the highest rate at 42%, followed by France and Finland at 34%. These countries fund socialized medicine and generous rights that the United States does not have, which makes Biden’s tax hikes even more offensive!

Biden’s tax hikes would generate more than $1 trillion, adding to his $2.3 trillion jobs and infrastructure plan that many Americans are now rejecting due to rising prices and inflation. This will likely mean the Democrats will be forced to push this through Congress using reconciliation.

It would mark this as “a tax hike on the rich to the party line” for Democrats seeking re-election.

York added that in states and cities that assess their own capital gains levy, Biden’s plan would push the total capital gains rate over 50%. The rate would rise to 56.7% in California, 58.2% in New York and 57.3% in Portland, Oregon. He said investors will take their capital elsewhere.

White House press secretary Jen Psaki said Biden has yet to finalize his tax plan, but stressed he promises to make the wealthy and corporations pay for any new government programs. “His view is that all tax increases should be on the backs of the wealthiest Americans who can afford them.”

Although Biden has promised not to raise taxes on those earning less than $400,000 a year, a White House spokesperson said Biden is considering capping interest deductions for homeowners. By decreasing this traditional property tax deduction, it will affect everyone who owns a home.

“There may be freedom and justice for all, but there are tax breaks only for some.” – Martin Sullivan

Ralph Nader told us: “Your best teacher is your last mistake. Joe Biden backed the southerner, Jimmy Carter, for the presidency over the party’s northern candidate. After suffering for four years from Carter’s failures, Biden watched Ronald Reagan take office and turn the economy around by cutting spending and taxes. One has to wonder if Joe Biden was sleeping during the Reagan years?

It took Jimmy Carter four years to destroy America’s economy, but Biden did the same in less than a year. With the Fed raising interest rates, rampant inflation and scared investors, a tax hike of this magnitude will cause a recession. This will complete Joe Biden’s “makeover” in the second coming of Jimmy Carter. And who said, “We can’t go back in time?

Biden gave us double-digit inflation, labor shortages, a broken supply chain and high energy prices. All of America realizes, except for Joe Biden and progressives: “No one can tax and spend their way to prosperity.” Biden’s ‘punish the rich’ tax hike will lead to lower investment, lost jobs, lower capital gains taxes and a major recession. Biden says he learned his politics from Barack Obama. Well, looks like he learned economic policy from Jimmy Carter. This is deja vu again for America.

“I wish I had known when I was in the White House what I know now.” – Jimmy Carter

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Brentwood woman sentenced to 81 months in prison for serial tax fraud, wire fraud and aggravated identity theft | USAO-NDCA https://pilgernebraska.net/brentwood-woman-sentenced-to-81-months-in-prison-for-serial-tax-fraud-wire-fraud-and-aggravated-identity-theft-usao-ndca/ Thu, 05 May 2022 20:57:22 +0000 https://pilgernebraska.net/brentwood-woman-sentenced-to-81-months-in-prison-for-serial-tax-fraud-wire-fraud-and-aggravated-identity-theft-usao-ndca/ OAKLAND – Jehoaddan Wilson was sentenced today in federal court to 81 months for filing false tax returns, wire fraud and aggravated identity theft in a tax fraud scheme that caused $902 in losses $040, announced U.S. Attorney Stephanie M. Hinds and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson. The […]]]>

OAKLAND – Jehoaddan Wilson was sentenced today in federal court to 81 months for filing false tax returns, wire fraud and aggravated identity theft in a tax fraud scheme that caused $902 in losses $040, announced U.S. Attorney Stephanie M. Hinds and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson. The sentence was handed down by U.S. District Judge Jon S. Tigar.

Wilson, 41, of Brentwood, was convicted by a federal jury on September 28, 2021 of five counts of filing a false tax return, five counts of wire fraud and five counts of aggravated identity theft . Trial evidence showed that Wilson obtained personal identifying information from dozens of unsuspecting individuals through lies and misrepresentations and then filed fraudulent tax returns on their behalf.

Evidence presented at trial showed that Wilson perpetrated his scheme by obtaining the victims’ Social Security numbers either by manipulating them into providing the information under false pretenses or by obtaining their Social Security numbers without their knowledge. Wilson then filed tax returns on behalf of each victim containing false information and fraudulently claiming a tax refund. In each return, Wilson requested that the tax refund be deposited between at least two bank accounts, one or both of which were Wilson’s personal bank accounts. In sum, Wilson filed fraudulent tax returns for people without their knowledge or consent, causing the federal government to pay undue tax refunds and deposit those refunds in bank accounts controlled by Wilson. .

At trial, a victim testified that she provided her personal identifying information to Wilson on the understanding that Wilson, who posed as a legitimate tax preparer, would help her file her tax return. Unbeknownst to the victim, Wilson made numerous misrepresentations about the victim’s employment, expenses, and income in the tax return which fraudulently claimed a tax refund. Wilson also requested, without the victim’s knowledge or consent, that approximately half of the tax refund be deposited into Wilson’s bank account. In another case, an elderly woman fell victim to Wilson’s scheme when Wilson or one of his associates visited the woman’s retirement community and convinced her to provide her credentials to get help. free money from a so-called “Obama Stimulus” federal government plan. Wilson used the personal information to file a tax return on the elderly woman’s behalf without her knowledge. The tax return, filled with false information, generated a fraudulent tax refund, and Wilson directed about half of the refund to his own bank account. Wilson victimized a third party, according to trial evidence, by obtaining the victim’s identifying information and filing a false tax return in his name while incarcerated and without his knowledge, enriching himself again. Wilson exploited a fourth and fifth victim using a similar scheme of obtaining their identifying information, filing false tax returns on their behalf without their knowledge or consent, and having a portion of the refunds deposited. tax on his bank accounts.

Evidence presented at trial also established that search warrants executed at Wilson’s home and office revealed numerous additional documents containing the victims’ identifying information, including copies of driver’s licenses and social security cards.

In its sentencing brief, the government described that Wilson’s fraud was so widespread that in a single tax year – 2011 – it victimized about 388 people. His fraudulent tax claims caused a loss to the federal government of $902,040 in that tax year alone.

United States District Judge Jon S. Tigar also ordered, in addition to the 81 months in jail, that Wilson pay restitution in the amount of $902,040. The sentence included a three-year supervision period for Wilson after his release from prison. Wilson was remanded in custody at the conclusion of the sentencing hearing and begins serving her sentence immediately.

Robert David Rees and Kristina Green are the assistant United States attorneys who prosecuted the case, with help from Jasmine Sanders, Claudia Hyslop and Leeya Kekona. The charge is the result of an IRS-CI investigation.

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Get your EIN federal tax free online directly from IRS.GOV for your LLC https://pilgernebraska.net/get-your-ein-federal-tax-free-online-directly-from-irs-gov-for-your-llc/ Mon, 02 May 2022 22:04:00 +0000 https://pilgernebraska.net/get-your-ein-federal-tax-free-online-directly-from-irs-gov-for-your-llc/ Contrary to popular belief, there is no cost to obtain a Federal Employer Identification Number (EIN). PAGO PAGO, AMERICAN SAMOA, USA, May 2, 2022 /EINPresswire.com/ — Contrary to a naive misconception, there is no cost to obtain a Federal Employer Identification Number. So make sure you don’t pay to get your feds EIN. Your goal […]]]>

Contrary to popular belief, there is no cost to obtain a Federal Employer Identification Number (EIN).

PAGO PAGO, AMERICAN SAMOA, USA, May 2, 2022 /EINPresswire.com/ — Contrary to a naive misconception, there is no cost to obtain a Federal Employer Identification Number. So make sure you don’t pay to get your feds EIN. Your goal should be to obtain your federal EIN through official channels established by the IRS to avoid any expense.

The IRS does not charge any fees for the EIN

Basically, the Internal Revenue of Service provides the federal EIN for free to a wide range of businesses. Besides being online, there are several ways to get a federal EIN that also cost nothing. However, it is essential that business owners meet all the requirements to obtain their EIN.

To get started, make sure you form your business with a legal structure like SARL. Also, the business location must be in the United States or US territories. And above all, get a proper tax identification number like ITIN and SSN along with EIN.

Fill in application information without errors

As long as you complete and submit the application without errors, you should be able to obtain your federal EIN. And the best part is that there are no additional or hidden fees. Remember that the EIN is free because every business must obtain it for tax and operational purposes.

Apply via the most convenient method at no cost

For convenience, the IRS offers four distinct ways to obtain an EIN. You can complete and submit your application online, fax a completed SS-4, apply via US Mail, or apply by phone. Most start-up businesses prefer the online method to obtain the EIN.

In fact, completing the application and validating the information online is easier and simpler than other methods. Often, business owners apply for an EIN through a toll-free service number. You can call (800) 829-4933 from 7:00 a.m. to 7:00 p.m. local time to obtain your EIN.

You will, however, need to provide the relevant and required information to the wizard to obtain your EIN. In this option, there is also no charge to obtain the EIN and simply requires the authorized person to communicate by telephone. American Samoa business applicants can also call (267) 941-1099 to obtain their EIN at no cost.

Conclude

In American Samoa, start-up business owners or members enjoy many benefits and allow for a high degree of flexibility and accessibility in managing LLC operations.

Learn more information on how to form American Samoa LLC now!

Staff
American Samoa LLC
+1 8014729920
write to us here

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Mike Tyson explains how the ‘Tax Lady’ predicted he would fight again https://pilgernebraska.net/mike-tyson-explains-how-the-tax-lady-predicted-he-would-fight-again/ Sat, 30 Apr 2022 13:25:57 +0000 https://pilgernebraska.net/mike-tyson-explains-how-the-tax-lady-predicted-he-would-fight-again/ Mike Tyson has told many crazy stories. He spoke of his 40 arrests before he was 13. He opened up about his time in prison. Tyson has been on top of the world and he has seen the bottom. Then there is the tax lady. Last week, Tyson told how a lady working at the […]]]>

Mike Tyson has told many crazy stories. He spoke of his 40 arrests before he was 13. He opened up about his time in prison. Tyson has been on top of the world and he has seen the bottom.

Then there is the tax lady. Last week, Tyson told how a lady working at the IRS predicted he would return to the boxing ring, despite saying he would never fight again.

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US digital asset strategy needs to be more tax-focused https://pilgernebraska.net/us-digital-asset-strategy-needs-to-be-more-tax-focused/ Thu, 28 Apr 2022 13:57:10 +0000 https://pilgernebraska.net/us-digital-asset-strategy-needs-to-be-more-tax-focused/ Transection of digital currency Getty In the months and weeks leading up to the IRS filing deadline, an old narrative quickly emerged: some taxpayers are still largely in the dark about the proper tax treatment of digital assets and virtual currencies. The position of the IRS is that virtual currencies are treated as property for […]]]>

In the months and weeks leading up to the IRS filing deadline, an old narrative quickly emerged: some taxpayers are still largely in the dark about the proper tax treatment of digital assets and virtual currencies.

The position of the IRS is that virtual currencies are treated as property for tax purposes, but this general position does not take into account various nuances. For example, how do you deal with passive income generated from cryptocurrency staking? If a taxpayer uses virtual currency to purchase new and emerging digital assets like non-fungible tokens, including digital art stored on a blockchain, how are these transactions taxed?

In the United States, where a estimated at 16 percent of adults invest in cryptocurrency, many investors are unaware of the various tax reporting obligations that are imposed on holders of virtual currency. For example, the majority of taxpayers in a survey commissioned by cryptocurrency compliance firm CoinTracker said they were unaware that they had to pay taxes when exchanging one type of cryptocurrency for another or when using the cryptocurrency to buy a good or service.

Overall, cryptocurrency insiders believe that the U.S. digital asset industry needs increased regulation for the good of investors and the economy. Brad Garlinghouse, CEO of Ripple Labs recently notified that the country needs to catch up with its regulatory peers if it is to have a substantial impact on the sector.

“I think the United States in the late 1990s provided that clarity and certainty about the Internet, the Internet that we use today, and that allowed the United States to thrive and to be a leader in the growth of the Internet,” Garlinghouse said. “I think the same opportunity exists today when it comes to blockchain and crypto, and so far the US has been lagging when it could be a leader.”

The Biden administration thinks digital assets also need more regulation. On March 9, the White House released Executive Order on ensuring responsible development of digital assets to better regulate cryptocurrency. The government wants greater control in a booming market – in November 2021, digital assets issued by private entities reached a combined market capitalization of $3 trillion, an explosive increase from just five years ago, when the market cap was $14 billion.

Meanwhile, there are few signs that the digital asset market is slowing, and as more individuals enter the market, the White House wants to prevent digital assets from creating undue risks for people. consumers and investors. He also wants to make sure they don’t undermine the integrity of the country’s financial system or its national security, or enable crime and illicit finance, according to the executive order.

The executive order does not explicitly mention taxation, but it does call on the US Treasury Department and several other government agencies to produce reports on digital assets, including conditions that influence digital asset adoption and implications for the system. finance and economy of the country. growth.

But regulation also requires clear and up-to-date tax rules, and the government must prioritize this in the digital asset space. There has been some progress: the Biden administration has enacted legislation under the Infrastructure Investment and Jobs Act (PL 117-58) requiring cryptocurrency exchanges to issue 1099-B forms detailing their clients’ gains and losses on crypto transactions.

The Treasury is also considering this. At the end of March, it published its revenue proposals for the 2023 financial year – the so-called green book – give priority to modernizing the rules for declaring digital assets. The main objectives of the department include:

  • modernize and expand the rules treating securities lending as tax-exempt to include other asset classes;
  • to allow certain financial institutions and digital asset dealers to engage in the communication of information for the purpose of information exchange;
  • requiring certain taxpayers to report foreign digital asset accounts; and
  • Amend mark-to-market valuation rules for dealers and traders to include digital assets.

The Treasury is concerned about the increasing use of digital assets for tax evasion purposes, and most of its objectives deal with digital assets from this angle. But it also needs to approach digital assets from a more transactional perspective so that taxpayers have a better idea of ​​their tax obligations for specific transactions.

As the Biden administration develops its digital asset strategy, this key area deserves more attention and will strengthen the nation’s digital asset sector and tax transparency goals. By the time next year’s filing deadline arrives, it is hoped that US taxpayers will have more clarity on their cryptocurrency tax obligations.

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Tax Court in Brief | Bindel V. Commissioner | For information: salaries are taxable. . . Yes, Really – Income Tax https://pilgernebraska.net/tax-court-in-brief-bindel-v-commissioner-for-information-salaries-are-taxable-yes-really-income-tax/ Tue, 26 Apr 2022 05:32:34 +0000 https://pilgernebraska.net/tax-court-in-brief-bindel-v-commissioner-for-information-salaries-are-taxable-yes-really-income-tax/ April 26, 2022 law of the free man To print this article, all you need to do is be registered or log in to Mondaq.com. The Tax Court in Brief – April 18 to April 22, 2022 Freeman Law’s “Tax Court Brief” covers all of the Tax Court’s substantive opinions, providing a weekly summary of […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

The Tax Court in Brief – April 18 to April 22, 2022

Freeman Law’s “Tax Court Brief” covers all of the Tax Court’s substantive opinions, providing a weekly summary of its decisions in clear, concise prose.

For a link to our Tax Court in Brief podcast, download here or watch other episodes of The Freeman Bill.

Tax litigation: the week of April 18, 2022 to April 22, 2022

  • Treece Financial Services Group, c. Comm’r, 158 TC No. 6 | April 19, 2022 | Kerrigan, J. | Dekt. No. 20850-19

  • Sezonov. Comm’r, Memo TC. 2022-40| April 20, 2022 | Wonder, J. | Dekt. No. 26650-17

  • Kohout c. Comm’r, TC Memo. 2022-37 |April 18, 2022?|Jones, J. | Dekt. No. 11958-17

Bindel c. Commissioner |20 April 2022 | Urda, P. | Dekt. No. 9552-19

Opinion

Short summary

The petitioner challenged the IRS’ determinations of tax shortfalls of approximately $24,000 for each of the two tax years; he had declared that he had no taxable income. The petitioner worked as a software developer. In each of the tax years, he received over $100,000 from employers who reported his wages to the IRS on W-2s. The petitioner claimed the right to reimbursement of the deductions. He attached Form 4852 to his tax returns, saying he “did not receive any salary as defined in Section 3401(a) and Section 3121(a).” The IRS noted the discrepancy and issued deficiency notices.

Main holdings

  • The Applicant’s arguments in support of his declaration of no taxable income were frivolous.

  • The Court declined to impose a sanction under section 6673(a)(1) for maintaining a frivolous claim because the petitioner had not made any frivolous claims in previous years, but it cautioned the applicant against repeating frivolous claims.

Main points of law

Generally, IRS deficiency determinations are presumed correct and once the IRS has established a factual basis linking a taxpayer to the income-generating activity, the taxpayer must show by a preponderance of evidence that a deficiency determination is arbitrary or erroneous. To see Rule 142(a); Welch versus Helvering290 US 111, 115 (1933); Carson v. United States560 F.2d 693, 695-96 (5th Cir. 1977); Portillo c, Commissioner, 932 F.2d to 1133; Carson, 560 F.2d at 695-96.

Congress has the power to levy revenue from any source of revenue, and claims that private sector employer salaries are not taxable “income” are frivolous. See Parker v. Commissioner724 F.2d 469, 471-472 (5th Cir. 1984); see also Crain v. Commissioner737 F.2d 1417, 1417 (5th Cir. 1984); Wnuck v. Commissioner136 TC 498, 510-12 (2011).

Knowledge

Anyone who receives a salary for services rendered must pay income tax on this salary. It’s about as simple as that.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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