The Internal Revenue Service (IRS) recently announced it will send out 10,000 letters to those who own cryptocurrency. The agency’s communications are geared to help better ensure tax compliance. The problem: tax compliance regarding digital assets is unclear, at best.
Tax laws take years to examine. Once they go into effect, there is generally a period of confusion before taxpayers fully understand the impact of the law. Take the recent Tax Cuts and Jobs Act (TCJA) as an example. The law passed a few years ago and was fully in effect for the 2018 tax filing season and yet the Internal Revenue Service (IRS) is still publishing guidelines to help taxpayers navigate this law.
Opening up your mail to find a letter from the Internal Revenue Service (IRS) likely leads to stress. Unless you are expecting a tax return in the form of a check — that is likely the only time anyone is excited to get a mailing from the Uncle Sam.
There are some activities that are synonymous with summertime: barbeques, boat rides and family road trips are a few that often come to mind. In some cases, summer fun can lead to tax savings. Three examples to watch for include:
Tax preparation professionals will likely find themselves in a relatively stable career. After all, we can claim nothing to be certain, except death and taxes. As long as the United States government continues to collect taxes, people will continue to need help navigating their tax filings.