As a leading public accounting firm in the virtual currency space, we regularly field inquiries from clients and potential clients relating to taxation of virtual currencies in the United States. Here is a list of the most common misconceptions held by virtual currency users that we encounter in our work, and the answers that we…
New veteran-owned businesses that meet certain criteria are entitled to an exemption from the franchise tax for up to five years after formation. Texas calls its tax on business revenue a “franchise tax.” The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or organized out of…
Many companies book substantial development expenses either in early years or on an ongoing basis that qualify as Research Expenditures for purposes of the Code Section 41 credit for increasing research activities (often called the “Research Credit” or the “R&D Tax Credit”). The credit, which became permanent in 2015 after nearly thirty years of temporary…
The IRS allows special relief for victims of Ponzi schemes. Because Ponzi-type schemes can continue for years, many investors wind up faced not only with the loss of their original investments, but also with having paid taxes on “phantom income,” based on fraudulent statements or estimates. If you have losses from a virtual currency exchange…
Each February, the IRS releases its “dirty dozen” list of tax scams that are expected to plague US taxpayers in the coming year. For the past three filing seasons in a row, identity theft has made the top three (it was number one in 2013 and 2014 and expected to be again for 2016). Electronic…
With a new tax year starting in just a few weeks, now is the time to consider filing elections that will take effect for 2016 and beyond. One such measure with an early deadline is the election to be treated as a Sub-chapter S Corporation. The S Corp election may offer significant tax advantages over…
The extended deadline for 2014 individual taxes is coming up in less than two weeks. IRS data show that the vast majority of taxpayers, especially households with simple returns and those expecting large refunds, choose to file as early as possible. However, others choose to wait a bit longer, usually either because they need the…
Retirement planning is supposed to be a good thing. Through the years, the Congress and government at large have promoted sound retirement by providing and expanding incentives for (mostly middle class) Americans to plan and fund their own retirement. However, continued deficit spending and ballooning public debt in recent years have resulted in a number…
For the first time since 1986, tax return due dates for certain filers will change in 2016. The short-term highway funding extension passed by the Senate during the last week of July contains several important tax provisions (H.R. 3236). The bill was passed by the House of Representatives, 385–34, and signed by President Barack Obama…
The US Internal Revenue Service is currently accepting comments regarding the applicability of rules that govern reporting of so-called “Specified Foreign Financial Accounts” to virtual currencies (the agency’s preferred term for bitcoin et al). The rules governing the current reporting requirements, which replaced temporary rules in place since 2011, were released last December in Internal…
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