A Brief Overview of Non-Fungible Tokens (NFTs) Did you buy, sell, donate, or receive an NFT during the tax year? If so, you must answer “yes” to the digital assets question on page one of the IRS Form 1040. Additionally, if you have sold an NFT, you could be liable for tax or eligible for… Read More
What You Need to Know About the IRS Trust Fund Recovery Penalty If you are an employer who withholds income tax, Social Security and Medicare taxes from your employees’ paychecks, you have a legal obligation to pay those taxes to the IRS on time. These taxes are called trust fund taxes because they belong to… Read More
Is Your Sideline Activity a Business or a Hobby? Do you have a sideline activity that you think of as a business? From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions? The IRS likes to claim that money-losing… Read More
You have heard the horror stories about mail sent to the IRS that remains unanswered for months. The IRS has mountains of unanswered mail pieces in storage trailers, waiting for IRS employees to process them. Because the understaffed IRS is having so much trouble processing all the documents it receives, you need to protect yourself… Read More
Usually, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. For example, you generally do not receive benefits that employees get, such as unemployment and paid sick leave. But this time it’s different. Because of the COVID-19 pandemic, you can qualify for the following seven benefits: Paycheck… Read More