Cryptocurrency, or digital currency, is a fairly new way to conduct financial transactions. Although relatively novel, taxpayers have used digital currency like Bitcoins to purchase real estate and other tangible items, and the Internal Revenue Service (IRS) has taken notice. In response to the growing rate of these transactions, the IRS recently announced it is […]

On July 26, 2019, the IRS released IR-2019-132, stating that it has started sending out warning letters to taxpayers suspected of incorrectly reporting virtual currency transactions. The IRS noted that by the end of August, more than 10,000 taxpayers will receive these letters. The IRS clarified that these are “educational letters” which come in three […]

Going through an inheritance after a loved one dies is a difficult and emotional time. In addition to the emotional turmoil, those who are left behind must also deal with the logistics that come with the estate. In some cases, these logistics can come with unexpected legal questions. Difficult legal question: Report or follow in […]

Whenever a relatively large financial transaction occurs, it is very likely that the Internal Revenue Service (IRS) will be involved. Getting divorced? The IRS will look over the property division determination and check for errors. If so, the agency may apply applicable taxes. Win the lottery? The IRS will expect a share of the winnings? […]

The Internal Revenue Service (IRS) recently released a publication that encourages taxpayers to make the most of common summertime activities. How, you may ask, can an agency that collects money encourage summer fun? The answer: by highlighting how popular forms of summer fun can translate to tax savings. #1: Saying “I do” with summertime nuptials […]

The Internal Revenue Service (IRS) has called on taxpayers to review their withholding status. Although the agency encourages all taxpayers to conduct a “paycheck checkup,” it states those who were surprised with a tax bill for their 2018 tax filings likely have the most to gain. Why conduct a paycheck checkup? A paycheck checkup involves […]

On June 18, 2019, Virginia Governor Northam and the Virginia Department of Taxation released an important reminder to taxpayers, who still haven’t filed individual income taxes, that returns must filed by midnight on July 1, 2019, to qualify for the Tax Relief Refund. Virginia implemented the Tax Relief Refund in response to the federal Tax […]

The United States tax code requires those who pay tax obligations to report all assets, including those held overseas. The government has passed recent laws that are intended to encourage foreign financial institutions to aid in finding U.S. taxpayers that are attempting to avoid reporting these assets. Like any reporting requirement, these institutions can get […]

On April 30, 2019, Maryland Governor Larry Hogan signed a law providing that certain tax liens on certain real or personal property terminate 20 years from the date of assessment. Previously, a tax judgment lien in Maryland never expired. Indeed, in 2015, the Court of Special Appeals clarified in Comptroller of Maryland v. Shipe,1 that […]

The Internal Revenue Service (IRS) along with the United States Department of Treasury recently issued regulations addressing state agency attempts to thwart the state and local tax deduction (SALT) limitation on federal tax returns. What is the SALT limit? The SALT limit went into effect with the new tax law. The Tax Cuts and Jobs […]