Washington D.C. Tax Law Blog

Have You Received a 1099-K for Cryptocurrency Transactions?

On behalf of Frost Law posted in on February 10, 2020.

Cryptocurrency exchanges, such as Coinbase and Uphold, have begun issuing Forms 1099-Ks, Payment Card and Third Party Network Transactions, to customers. If you receive a 1099-K from a cryptocurrency exchange, then you can be assured that the IRS is fully aware of your reportable cryptocurrency transactions. This is because cryptocurrency exchanges are required to send […]

Tags: Blog, IRS

Updated IRS FAQs Require Appraisals for Charitable Donations of Virtual Currencies

On behalf of Frost Law posted in on February 5, 2020.

In December of 2019, the Internal Revenue Service (IRS) added two new “Frequently Asked Questions” (FAQs) on its webpage regarding the responsibilities and reporting obligations for charitable organizations that received donations in the form of virtual currencies.1 One of these FAQs imposes an appraisal requirement for large donations of virtual currencies-increasing already existing concerns that […]

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IRS Issues Guidance for Reporting Required Minimum Distributions in 2020

On behalf of Frost Law posted in on January 31, 2020.

Within the newly enacted Further Consolidated Appropriations Act, 2020 (FCAA) is another act-the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), which significantly changes retirement plan funding and distribution.[1]This new law increases the age at which account holders are required to take distributions from their individual retirement accounts (IRAs) from 70½ […]

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Don’t Fall Victim to “Ghost” Tax Return Preparers!

On behalf of Frost Law posted in on January 30, 2020.

An IRS news release, issued January 22, 2020, warned taxpayers not to fall victim to “ghost” tax return preparers this tax filing season.[1] The IRS reminded taxpayers that a paid tax return preparer is required by law to have a valid Preparer Tax Identification Number (PTIN). The IRS clarified that a paid preparer must include […]

Tags: Tax Topics, Tax Crimes, Blog

Getting Ready to File your Taxes? Avoid These Audit Triggers.

On behalf of Frost Law posted in on January 29, 2020.

Tax season is upon us. The Internal Revenue Service (IRS) began accepting tax returns on Monday, January 27. Those putting the finishing touches on their returns may wonder what the IRS looks for when reviewing returns — what exactly triggers an audit? 1) A large income. Unfortunately, the IRS is more likely to conduct an […]

Tags: IRS, Audits, Blog

Governor Announces More Than $1 Billion Tax Relief Aimed to Keep Retirees in Maryland

On behalf of Frost Law posted in on January 23, 2020.

On January 16, 2020, the Maryland Governor’s Office issued a news release reporting that Maryland Governor Larry Hogan announced the proposed Retirement Tax Reduction Act of 2020 (Act).[1]The Act would provide significant tax relief for Maryland retirees in order to make it more affordable for them to remain in Maryland. The news release quotes Governor […]

Tags: Tax Topics, Blog

Non-Filers: IRS Will Not Prepare Your Return with QBI Deduction

On behalf of Frost Law posted in on January 22, 2020.

When a taxpayer fails to file a tax return, the Internal Revenue Service (IRS) has the authority under Internal Revenue Code (IRC) §6020 to prepare a “substitute for return” (SFR) on the taxpayer’s behalf. Generally, SFRs are detrimental to the taxpayer’s overall tax situation. SFRs do not start the clock running for the three-year period […]

Tags: Tax Topics, Blog

Three Tips to Reduce the Stress that Comes with Tax Season

On behalf of Frost Law posted in on January 21, 2020.

Holiday decorations are stored away, New Year’s celebrations are over. Now it is time to move on to the next season of the year: tax season. It is not uncommon to look at the upcoming April 15 tax deadline with some amount of dread. You can take steps to help reduce the stress and frustration […]

Tags: IRS, Blog

Tax Court Preserves Levy Protection Because IRS Fails to Show Good Cause

On behalf of Frost Law posted in on January 21, 2020.

On January 3, 2020 the Tax Court issued an order refusing to remove an Internal Revenue Code (IRC) §6330(e)(1) suspension of levy, finding that the Internal Revenue Service (IRS) failed to establish good cause for such removal.[1]In this case, the taxpayer, as an attorney admitted to practice in Tax Court, was able to competently deflect […]

Tags: Tax Topics, Blog

Annual Report Indicates Overall Aggressive IRS Trend in Whistleblower Program

On behalf of Frost Law posted in on January 17, 2020.

On January 6, 2020, the Internal Revenue Service (IRS) released its Fiscal Year 2019 Whistleblower Report.[1]Although the report shows a decline in awards made as compared to last year, potential whistleblowers should note that the report clearly portrays an overall trend that the IRS is increasingly motivated in today’s mandatory tax whistleblower program. An important […]

Tags: IRS, Blog