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
Summary:
- 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
Link:
Article Title: Carbon tax shows new signs of life in Congress
Summary:
- 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
Link:
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
Link:
Article Title: Trump wants restraining order to keep his New York tax returns away from Democrats
Summary:
- 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"
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That is all for the most recent tax news, tax stories, and tax events!
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