The IRS is gearing up to get their share of digital profits. Not only are they requiring brokerage companies to report sales of digital assets, but now their is a new check box on the upcoming tax forms. When you do your taxes for 2022 next spring, you must check “yes” or “no” to the digital asset question on the front of Form 1040.

Digital assets are digital representations of value that are recorded on a cryptographically secured distributed ledger or similar technology. Examples of digital assets are:

Many people work for a family member, whether it's a child helping out at their parent's shop or spouses running a business together. When someone is employed by a family member, the tax implications depend on the relationship and the type of business. It's important for taxpayers and employers to understand their tax situation.

The Internal Revenue Service has warned taxpayers of a recent increase in IRS-themed texting scams aimed at stealing personal and financial information.

So far in 2022, the IRS has identified and reported thousands of fraudulent domains tied to multiple MMS/SMS/text scams (known as smishing) targeting taxpayers. In recent months, and especially in the last few weeks, IRS-themed smishing has increased exponentially.

This tax court ruling shows how important it is you have a tax advisor that is well versed in business returns.

A recent post to IRS’s Mission Critical site shows the inventory of unprocessed forms as updated on September 16:

With continuing phone and in-person scams taking place across the country, the IRS wants to help taxpayers understand how and why agency representatives may contact taxpayers.

In most instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always. Depending on the situation, IRS employees may first call or visit with a taxpayer.

Did you know that there is a Taxpayer Bill of Rights to help protect all taxpayers?

Taxpayers have the right to expect that any IRS inquiry, examination, or enforcement action will comply with the law and be no more intrusive than necessary. Taxpayers can also expect that the IRS will respect all due process rights, including search and seizure protections and will provide, where applicable, a collection due process hearing.

Charitable remainder trusts are irrevocable trusts that let you donate assets to charity and draw annual income for life or for a specific time period.

We closely examine charitable remainder trusts to ensure they:

• Correctly report trust income and distributions to beneficiaries
• File all required tax documents
• Follow all applicable tax laws and rules

How a Charitable Remainder Trust Works

In a charitable remainder trust:

The Internal Revenue Service today announced that interest rates will increase for the calendar quarter beginning October 1, 2022.

For individuals, the rate for overpayments and underpayments will be 6% per year, compounded daily, up from 5% for the quarter that began on July 1. Here is a complete list of the new rates:

There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It's also important to notify the IRS of their plans.

Aug. 16 - West Virginia Senator Joe Manchin recently claimed the 15 percent corporate minimum tax contained in the Inflation Reduction Act, which should be called the Inflation Creation Act, is not a tax increase. Instead, he claimed, the bill simply closes a loophole that allows corporations to avoid paying all the taxes they owe. Despite what Senator Manchin says, the fact is the new minimum tax increases the amount of money some corporations must hand over to the government; in other words, it increases their taxes.