Does Coinbase report to the IRS? This has become a popular question recently, and the IRS has made it clear that cryptocurrency tax enforcement is a high priority. We’ll break down the key points you need to know about Coinbase tax reporting, as well as explain the different types of forms that Coinbase sends to customers and what they mean for you.
Author: Melissa Lomeli
Tax and Accounting Professionals in the Modern Era
Starting a few years ago with the onset of the still ongoing COVID-19 pandemic, the role of tax and accounting professionals in the context of a small business began to change. It’s truly become a role that acts as a sounding board for solid decision-making, as is true with that of the virtual CFO.
Special Tax Benefit for Inheritances
You may have heard the term “Stepped-Up Basis”, that many believe is a tax provision that allows beneficiaries of an inheritance to reduce or even avoid taxes when and if they sell inherited property.
If an individual sells property, any gain from the sale of that property is taxable. The tax term “basis” is the value from which any taxable gain is measured. In regard to personal use or investment property, the basis is generally the cost of the property. For business property the term basis is replaced with adjusted basis, which usually means the cost of the property reduced by business deductions attributable to the property.
Announcement – New MeredithCPAs Partners
Our goal has always been to create a healthy, sustainable, and warm company that treats people the way we would want to be treated. No matter if we have seven employees or seven hundred, the golden rule will forever be at our core. We have been extremely blessed and fortunate to have assembled the team we currently have on our roster. In recent years, the significant growth of the firm has expedited our need to expand the leadership structure of the firm to ensure its continued growth and independence.
Proposed IRS Budget Increase May Increase Audit Rates
The Congressional Budget Office proposed a substantial budget increase for the IRS in late 2021 that could increase their budget by up to $80 billion in the next ten years. The reason for this request is that increasing the budget of the organization could increase the overall revenue by $200 billion over the same period.
American Families Plan Tax Changes
President Biden’s American Families Plan tax changes has a substantial impact on high-income taxpayers. What are the odds that the bill will be passed into law? Since the Senate is evenly divided at 50/50 for each party the Democrats will need all 50 votes from their side and the support of the vice president to pass the bill through budget reconciliation.
What impact will the American Families Plan have on tax rates?
New Lease Rules For GAAP Financial Statements
The new leasing standard (ASC 842) will impact all GAAP financial statements next year. This new standard will affect every company issuing GAAP financials that has any type of lease agreement (office lease, copy machine, auto lease, etc.). Under the new standard, all leases, regardless of being capital or operating leases, must be reported on the balance sheet as an asset with a related lease liability. Complying with this standard will be a tedious task and will also impact income tax liability.
SOC Compliance – Small Business Questions
There are a few areas of confusion when it comes to small business SOC compliance. Many smaller organizations still have sufficient internal controls, and the documentation and questions required by SOC compliance can still be provided and answered. However, the size of the organization can be very impactful in two areas especially.
Teaching Your Kids About Investing
While books, games, and toys are all great gifts for kids, one of the gifts we can give our children that often goes ungiven is financial education.
Kids that aren’t taught basic financial and money management skills can accidentally end up in debt or living outside of their income level. This could potentially lead them to need financial support from parents much longer than is ideal.
Here are some vital money lessons that can help your kids get a great start to their financial education.
Reminder – 100% Business Meal Deduction
In an effort to assist the restaurant industry, the Consolidated Appropriations Act of 2021 introduced a 100% business meal deduction. The new provision creates a temporary but meaningful tax incentive to spend more in restaurants. This means that business owners can write off meals and entertainment at full cost (formerly 50%) for the years 2021 and 2022.