Tax News & Views Crypto Roundup

February 7, 2020

2020: The year of the amended tax return – Mark A. Luscombe, Accounting Today

 The December tax bill included several retroactive tax provisions that may have taxpayers wondering if an amended 2018 return is in order. But further changes may still be coming:

 “Adding to the complexity is the fact that there are other significant technical corrections to the TCJA that have not yet been enacted by Congress, including the depreciation of qualified improvement property and the effective date of the net operating loss carryback provision.”

 The majority of amended return filings will likely happen after the April deadline, but if you have questions and concerns it’s not too early to start discussions. 

 How Blockchain Will Track Taxes (and Tax Cheats) – John Biggs, Coindesk

 “Tax, obviously, is on its face about the most boring topic imaginable, but it turns out that it powers many of the most fundamental elements of our lives.”

 No one is going to argue with that statement.

 Don’t Forget About Cryptocurrency Like Bitcoin At Tax Time – Kelly Phillips Erb, Forbes

 Cryptocurrency compliance is a hot issue with the IRS; make sure you're aware of tax reporting responsibilities! 

 “The IRS has made cryptocurrency compliance a priority. Last year, the IRS mailed letters to more than 10,000 taxpayers who might have failed to report income and pay the resulting tax from virtual currency transactions or did not accurately report their transactions.”

 In addition to the letters, a new question on Form 1040 has appeared to denote if the taxpayer has had any cryptocurrency activity during the year; something you don’t want to miss if it applies to you!

 An inside look at the 2020 tax season – Roger Russell, Accounting Today

 Most tax professionals will tell you that last filing season was the worst in professional memory – will 2020 be better?  Perhaps, but not without continued challenges.  And while commercials are touting the average person as able to do their own taxes, that’s a good thing and tax pros should not fear!

 “That’s fine with us, because we like to devote our expertise to more complicated situations where we can bring more value-added. We’re not just in the compliance business, we’re in the compliance and advisory business.”

‘Stablecoin’ Traders Need More Tax Guidance From IRSKristen A. Parillo, Tax Notes ($)

 Stablecoins are, “cryptocurrencies whose value is pegged to another asset or basket of assets, such as fiat money, exchange-traded commodities, or other cryptocurrencies…and were created to minimize price volatility, one of the greatest challenges facing the cryptocurrency market.”

“If there is a reporting or tax implication from the underlying asset gains or losses, there is a question of which entity is responsible for handling those requirements.”

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