Tax News for July 2019
This week in tax news focuses on cryptocurrency tax deficiencies, carbon tax bill momentum, the tax-free holiday season, and President Trump's efforts to stop the release of his tax return!
Period: July 22- July 28
Article Title: The IRS is going after some cryptocurrency holders for back taxes
- More than 10,000 taxpayers will receives letters from the IRS indicating tax deficiencies relating to virtual currency transactions
- The type of tax on cryptocurrency depends on the manner in which you interact with the virtual currency
- For those who mine the cryptocurrency, you must report the FMV at date of receipt in gross income
- For those who trade the currency, you must report transactions and related capital gains
- For those who receive crypto as compensation, the compensation is subject to normal FICA rules or self-employment rules
- Failure to report crypto transactions and earnings will result in fines and/or prison time
Article Title: Carbon tax shows new signs of life in Congress
- Democrats and republicans introduced competing bills placing a tax on carbon emissions
- Sen. Coons, Rep. Rooney, and Rep. Lipinski all introduced a carbon tax bill
- Coons: greenhouse gas base fee of $15 per metric ton of carbon, increasing the fee over time
- Rooney: $30 tax per metric ton of carbon
- Lipinski: $40 per metric ton of carbon, but more gradual increase in rate over time
Article Title: Upcoming state tax-free holidays
- In the next few weeks, states across the U.S. will have a tax-free period relating to sales tax
- The period and rules vary state by state
- The category of sales items also vary state by state
- For the complete list of states and rules for the sales tax free holiday check out the link below
Article Title: Trump wants restraining order to keep his New York tax returns away from Democrats
- Trump’s attorneys asked a federal judge to issue a temporary restraining order to prevent Richard Neal from asking New York officials to turn over the president’s state tax returns
- New York law allows access to returns upon request
- Neal asked a federal court to order the administration to give him six years’ worth of Trump’s returns
- The suit filed by Trump argues that Democrats lack a legitimate reason for seeking Trump’s New York returns “because the committee’s jurisdiction is limited to federal taxes"
That is all for the most recent tax news, tax stories, and tax events!
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