IRS & California Tax Blog

Key Takeaways for Digital Asset Holders New Guidance: IRS Revenue Procedure 2024-28 allows taxpayers to allocate basis in digital assets to wallets or accounts for tax purposes as of January 1, 2025. The allocation must be reasonable and can be either specific or global. This is crucial for accurate tax reporting. Transition Period: The guidance…

Is Your Business Eligible for the ERC Voluntary Disclosure Program? If your business claimed the Employee Retention Credit (ERC) during the COVID-19 pandemic, recent IRS actions may affect you. The IRS has introduced a voluntary disclosure program that allows businesses to correct erroneous ERC claims without facing severe penalties. If your business is uncertain about…

You Have a Right To Appeal in U.S. Tax Court The IRS has recently resumed the issuance of LT 11 notices, which is a notice of intent to levy because of unpaid taxes, after a pause during the COVID pandemic. An LT 11 notice is the IRS signaling to the taxpayer that it intends to…

Expert Advice from Kugelman Law Tax season can often be a daunting time for many individuals and businesses. The complexities of tax laws combined with the pressure of meeting deadlines can lead to heightened stress levels. However, with proper preparation and guidance, navigating tax season can be a breeze. As experts in tax and crypto…

Learn About Crypto Tax Audits Crypto tax attorney Alex Kugelman provides a comprehensive breakdown of what causes a crypto audit and how to respond to a crypto audit on the latest Bitcoin Taxes podcast. Alex shares with host Sal Vescio a thorough overview of what causes a crypto audit, what to expect during an audit,…

IRS Crypto Tax Reporting Requirements As part of the Infrastructure Bill’s legislation, there is a requirement for crypto exchanges to report information to the IRS about its crypto and NFT transactions and investors. Now that the IRS will be tracking crypto investments, whether you are a trader, miner, developer, or a broker it is critical…

Investigations Focus on Taxpayers Paid in Crypto Who Do Not Report The IRS Criminal Investigation (CI) Division is preparing hundreds of cases and increasing enforcement related to crypto tax evasion and off-ramping transactions involving exchange of digital assets for fiat currency. Division Chief Jim Lee announced on a press call that there has been a…

What Are The Steps in an IRS Tax Audit? Taxpayers facing a tax audit are confronted with the first step in a stressful journey through examination, appeals, and possibly litigation. Our team of IRS and U.S. Tax Court attorneys guides clients through the administrative process for an efficient resolution. The IRS starts an audit or…

Reporting User Info Could Trigger Criminal Investigations and Civil Audits Binance, the world’s largest cryptocurrency exchange, is now requiring users to verify their identity as enhanced security protection, but this requirement will have huge crypto tax compliance ramifications for its millions of users. By requiring Anti-Money Laundering (AML) and Know Your Customer (KYC) verification, including…

IRS Increases Focus on Crypto Tax Compliance In a wide-ranging BitcoinTaxes podcast, cryptocurrency tax controversy attorney Alex Kugelman delivers insights into the Circle/Kraken/Poloniex Summonses, the June 2021 Like-Kind Memo, and IRS enforcement of DeFi. Alex and his frequent collaborator on criminal tax issues, Chris Wadja, had a roundtable discussion with host Salvatore Vescio to breakdown…