IRS

IRS Reminds You to Report Virtual Currency Transactions

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

Mary Lundstedt, Esq., Associate On March 23, 2018, the IRS issued IR-2018-71, reminding taxpayers that they must report income from virtual currency transactions on their income tax returns. The IRS defined virtual currency as “a digital representation of value that functions in the same manner as a country’s traditional currency.” The IRS emphasized that, as […]

Tags: Articles, IRS, Tax Crimes, Tax Topics


The QBI Deduction for Real Estate Businesses

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

Eli S. Noff, Esq. CPA, PartnerMary Lundstedt, Esq., Associate The Tax Cuts and Jobs Act of 2017 created new Internal Revenue Code (IRC)§199A. Undoubtedly, the new section provides a significant tax break to flow-through entities and structures. Under this new section, subject to certain limitations, taxpayers (excluding C corporations) may be able to deduct up […]

Tags: Articles, IRS, Tax Topics


IRS Introduces Expanded Flexibility for Payment Plans

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

The IRS has expanded their program on streamlined processing of installment agreements under a test program that is scheduled to run until September 30, 2017. For the first time, streamlined processing standards will apply to individual taxpayers with an assessed balance of tax, penalty and interest between $50,000 and $100,000. During this test, more taxpayers […]

Tags: Articles, IRS


Americans Abroad Left Waiting for Yearly Average Exchange Rates

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

Due to the government shutdown, American citizens and resident aliens living abroad should be prepared to wait even longer than those living in the U.S. to file their tax returns and receive refunds. U.S. taxpayers must report and pay taxes on their worldwide income. Those earning money abroad are required to report their income in […]

Tags: Articles, IRS


IRS Responds to States’ Attempts to Circumvent SALT Cap

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

Mary Lundstedt, Esq. On May 23, 2018, the IRS issued Notice 2018-54,[1]making it abundantly clear that when it comes to state efforts to circumvent the recently enacted state and local tax (SALT) deductions cap, “taxpayers should be mindful that federal law controls the proper characterization of payments for federal income tax purposes.” Section 164 of […]

Tags: Articles, IRS


IRS Criminal Investigation Division Assembles New International Tax Enforcement Unit

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

Mary Lundstedt, Esq. With international tax compliance on the IRS’s radar, it was revealed publicly to reporters on August 2, 2017, that the IRS Criminal Investigation Division (IRS-CI) is assembling a new, dedicated international tax enforcement unit. The new initiative is expected to be fully operational by October 1. U.S. persons’ worldwide income and foreign […]

Tags: Articles, IRS


What You Need to Know About Bitcoin & How it is Taxed

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

What is Bitcoin? Bitcoin is a form of electronic digital currency. Bitcoins can be used to buy goods electronically from thousands of vendors. Others are looking at Bitcoin as a potential investment, and are holding them as an investment to benefit from future appreciation. Bitcoin has created a new asset class, and it is continuing […]

Tags: Articles, IRS


Hobby or Business? – Why It Matters

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

Millions of U.S citizens have hobbies such as photography, travel, sewing, crafting, hunting, floral design, and coin collecting. By the IRS definition, a hobby is an activity that is not pursued for profit. On the other hand, a business is an activity that is carried out with the intention and expectation of earning a profit. […]

Tags: Articles, IRS


IRS Actively Targeting Taxpayers For Passport Denial/Revocation

On behalf of Frost Law posted in on April 20, 2020.

Eli S. Noff, Esq.CPA, PartnerMary Lundstedt, Esq., Associate The IRS is now actively in the process of issuing Notices CP508C to hundreds of thousands of U.S. taxpayers–placing all notified taxpayers’ passports in serious jeopardy. Several news outlets this week report that the U.S. State Department confirms that it has already acted on its part in […]

Tags: Articles, IRS


What’s Your Alien Tax Status and How Does it Affect Investment Property?

On behalf of Frost Law posted in on April 20, 2020.

Eli S. Noff, Esq.,CPA, PartnerMary Lundstedt, Esq.Brent Conrad For tax purposes, a non-U.S. citizen is either a nonresident alien or a resident alien. All aliens are considered nonresident aliens, unless they pass the green card test or the substantial presence test. A person meeting either of these tests is considered a resident alien. Since aliens […]

Tags: Articles, IRS