As we’ve discussed on this blog before, the IRS’s enforcement budget has been slashed by a quarter since 2011. That has meant fewer audits and collection activities overall, and it has focused those efforts on working people more than on the wealthy. In 2017, Congress directed the IRS to allow private collection agencies (PCAs) tocontinue reading…
IRS provides guidance on reporting cryptocurrency income
Many investors in Bitcoin and other virtual currencies have been confused about how those investments are taxed. As we’ve noted before on this blog, cryptocurrency gains are taxed like capital gains. That means that you’ll need to keep detailed records on what you paid and what you got when you sold the virtual currency. Youcontinue reading…
IRS admits it audits the poor just as often as the rich
In April, the nonprofit newsroom ProPublica reported on a surprising imbalance at the IRS. Although it would almost certainly be both more effective and bring in more revenue if it focused on auditing the rich, the agency does not do this. No, it audits the working poor at almost the exact same rate as itcontinue reading…
Minnesota updates its sales tax rules for out-of-state sellers
In 2018, the U.S. Supreme Court ruled in South Dakota v. Wayfair, Inc., Overstock.com, Inc., and Newegg, Inc. that states can require out-of-state sellers and so-called “marketplace facilitators” to collect sales tax on their behalf. Previously, the rule had been that a seller or facilitator had to have a physical presence in the state before it couldcontinue reading…
IMF: Foreign shell companies hold $15 trillion in untaxed capital
If you own a company with interests abroad, you may have wondered if you can take advantage of the lower corporate tax rates some countries have adopted. After all, they’ve often changed their policies and tax rates in order to garner international investment. In the 1980s, for example, Ireland had a 50% corporate tax rate.continue reading…
