IRS AND TREASURY ON SECTION 1256 CONTRACTS

IRS and Treasury on section 1256 contracts. The IRS and Treasury put out information to further clarify Section 1256 mark to market rules, defining foreign currency contracts. It had a lengthy preamble, which noted that other types of contracts may be rules by Section 1256, which covers, not just foreign currency contracts, but a variety […]

TAX PROPOSAL TO REDUCE INCOME INEQUALITY

Tax proposal to reduce income inequality. An additional 573 people have claimed billionaire status since the Covid pandemic began. Yet, 263 million people are at risk of falling into extreme poverty. The widening gap between rich and poor has led to renewed calls for the U.S. to tax wealth more. The widening divide between the […]

CHANGES TO OFFER IN COMPROMISE PART ONE

Changes to Offer in Compromise part one. What is now known as the IRS Fresh Start Program used to be called the Offer in Compromise. The IRS has made some changes due to Covid’s impact on the pocketbook’s of taxpayers. An Offer in Compromise allows taxpayers to settle their tax debt for an amount that […]

BIDEN WANTS MORE TAXES ON RICH

Biden wants more taxes on rich. President Biden stated when he ran for office that he wanted to add additional taxes to anyone earning over $400,000 a year. As President he has stuck to that promise, and also the promise to tax Corporate America more, to pay for programs designed to lift up the lagging […]

WILL CONGRESS TAX CRYPTO

Will congress tax crypto. With the large stimulus proposals passed by both the Trump and Biden administration’s, its apparent that the deficit has grown enormously during the Covid health crisis. Even though this is a once in a century event, and usually government intervention is needed for such things, economists have put out warnings about […]

FEDERAL AID WILL HURT TAX CUTS

Federal aid will hurt tax cuts. A condition attached to $350 billion in relief for state and local governments by the American Rescue Plan, P.L. 117-2—that states may not use the money to offset their own tax reductions—may prove problematic, and is perhaps unconstitutional, tax practitioners say. The Coronavirus State Fiscal Recovery Fund appropriates $220 […]

STIMULUS PAYMENTS TO GO OUT IN DAYS

Stimulus payments to go out in days.  With plenty of practice sending relief payments to Americans, the federal government should be able to launch the delivery of $1400 checks almost immediately once Congress finalizes the new aid bill and President Joe Biden signs it, tax experts say. Some Americans might see relief as soon as […]

STIMULUS AND 2020 TAXES INTERTWINED

Stimulus and 2020 taxes intertwined. Your taxes have a lot more to do with your stimulus checks than you may think—and that goes for the first and second direct payments as well as a potential third stimulus check. Your federal income tax plays a major role in determining the size of the check the IRS […]

WILL STIMULUS WAIT TWO MORE MONTHS

Will stimulus wait two more months. The latest conflict over America’s next stimulus package doesn’t just have to do with how much it cost or what it contains.  The conversation, just days before the election has turned into whether a package is needed at all before the election, as politics has entered the fray. Senate […]

TRUMP SOCIAL SECURITY AND THE ELECTION

Trump social security and the election. Social Security has long been called the “third rail” in American policitcs–touch it at your own peril. With the news cycle dominated by COVID-19 since March, it hasn’t been a hot button issue. But that is changing. On August 8, President Trump signed an executive order to cut the […]