John D. Teter Law Offices

REQUEST A CONSULTATION TODAY

408-866-1810

1361 South Winchester Boulevard, Suite 113
San Jose, CA 95128
Subscribe to this list via RSS Blog posts tagged in tax audits

: San Jose, CA cryptocurrency tax attorney

The Internal Revenue Service (IRS) has been sending letters to taxpayers who are involved in activities that use virtual currency to complete transactions. Though sent as educational notices, these letters may indicate that a person could be subject to a tax audit. Individuals or entities may receive this type of notice if they failed to report income or failed to pay taxes on virtual currency transactions. 

What Is Virtual Currency?

Virtual currency, also known as cryptocurrency, is a digital form of money that is issued and controlled by program developers. People may accept these currencies as a medium of exchange just like U.S. currency, or cryptocurrencies may be converted into cash or other forms of virtual currency. Virtual currency is deemed to be property for federal income tax purposes.

...

San Jose tax attorney, IRS partnership audit, partnership audits, tax audits, tax lawIn recent months, much of the discussion surrounding tax laws in the United States has focused on the changes made by the Tax Cuts and Jobs Act of 2017. Yet while individuals and businesses should understand how they will be affected by tax reform, they should additionally be aware of recent new rules that govern tax audits.

The Centralized Partnership Audit Regime

Under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), the Internal Revenue Service (IRS) had certain rules for assessing and collecting taxes for partnerships. Audits of large partnerships, such as hedge funds or private equity firms, required individual audits of every partner. The Bipartisan Budget Act of 2015 (BBA) established a new, centralized audit regime, allowing the IRS to audit partnerships as a whole. This new regime will apply to partnership tax years beginning after December 31, 2017.

...

San Jose tax audit attorney, tax audits“You are being audited” are words no person or business wants to hear. Tax audits induce stress and tax professionals are usually needed. Often, taxpayers are concerned that they will discover a large tax obligation or that an audit will take up valuable time.

One of the most important steps you can take in the instance of being audited is to have all supporting documentation on hand. This requires keeping documents for the recommended period of time as well as having an organizational system for these records.

How Long Should I Keep Records?

...
BBB ABA State bar of california SCCBA MH 2016
Back to Top