IRS

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 with any other property […]

Eli S. Noff, Esq. CPA, Partner 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 to 20% of […]

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 […]

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 […]

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 the Internal Revenue […]

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 financial assets are […]

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 […]

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. […]

Eli S. Noff, Esq.CPA, Partner 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 the process and […]

Eli S. Noff, Esq.,CPA, PartnerBrent 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 are taxed […]