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IRS seeks membership nominations for the 2025 Internal Revenue Service Advisory Council

Peter J. Scalise

On Thursday, April 18th the Internal Revenue Service announced that it is now accepting applications for the 2025 Internal Revenue Service Advisory Council (hereinafter “IRSAC”) through May 31, 2024, including nominees for a newly created subcommittee focused on fairness issues. The IRSAC serves as an advisory body to the IRS commissioner...

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Marital Dissolution Planning and Crowdfunding

Divorce Taxation

Sidney Kess, CPA, J.D., LL.M.

When couples split up, it’s still common for one party to make support payments to the other. Sometimes this continues until the death of the party receiving support; sometimes it...

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The Bottom Line

Tax Strategies

Marital Dissolution Planning Post TCJA

Sidney Kess, CPA, J.D., LL.M.

The IRS reports that nearly 600,000 taxpayers claimed an alimony deduction on their 2015 returns (the most recent year for statistics) (https://www.irs.gov/pub/irs-soi/soi-a-inpd-id1703.pdf). The Tax Cuts and Jobs Act of 2017...

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Feature Stories

Tax Court Upholds Strict Adherence to Requirements for IRS P…

Kathleen M. Lach

A recent decision issued by the U.S. Tax Court in Graev v. Commissioner 1 could prove pivotal in cases where a practitioner has requested abatement of penalties for their client...

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Financial Planner

Understanding Pay Options with the new DOL Regulations

Jerry Love, CPA/PFS, CFP, CVA, ABV, CITP, CFF, CFFA

This article is a follow up to the prior article which highlights the new regulations for the Fair Labor Standards Act (FLSA) from the Department of Labor (DOL) raising the...

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Client Tax Tip

How Interest Can Be Deducted When Money is Borrowed to Buy I…

Julie Welch, CPA, CFP

If a taxpayer borrows money to purchase investments, such as mutual funds, bonds or stock, the interest paid on the loan can usually be deducted. There are two limitations, however...

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Editor Blog

CPAs Wanting to Do It Themselves

Joshua Fluegel

In its ongoing effort to stay on the forefront of developments in tax profession technology, CPA Magazine talks to Mark Strassman, president of Make My Day CPA. Strassman discusses CPAs’...

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Tax Checklist

Non-Grantor Trust Planning Tips Benefit Many Clients

Martin M. Shenkman, CPA, MBA, PFS, AEP, JD

Why You Must Understand the New Planning Benefits of Non-Grantor Trusts The 2017 Tax Act dramatically changed tax planning. In the new tax environment, there are a number of significant income...

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By: T. Steel Rose, CPA |  Bitcoin will be treated a property according to guidance issued by the IRS March 25th. See www.bitcoin4biz.com for full release and FAQs. Bitcoin has grown in popularity across a broad spectrum of users over the last five years. First there were the technology-savvy cryptologists, who see digital currencies as a platform for open finance the same way the Internet has democratized communication. Next were the investors and speculators, like the Winklevoss twins who believe in the future of digital currencies, and have filed with the SEC to provide a bitcoin fund for investors.

At a U.S Senate hearing in November 2013 virtual currencies were described as “a legitimate financial service with the same benefits and risks as other online payment systems”. Then tech-savvy businesses recognized the potential of bitcoin payments and the publicity that comes along with adopting new payments technology.

“It wasn’t just the number of people who wanted to use bitcoin, it was the number of people that became interested in our hotel,” said Susan Hitch, CFO of The D Casino Hotel in Las Vegas, in an announcement.

The most interesting group is the growing number of small businesses using bitcoin. They are able to reduce the cost using traditional payment processing options. Domestic credit card fees of 3% can be reduced to less than 1%, with larger savings for international remittances. Additionally, greater international reach can be achieved as certain payment processors may not be accessible in certain locations. PayPal, for example, is not available in over 25 countries including Ghana, Iran, Montenegro, Pakistan and Paraguay.

CPA Magazine believes that CPAs, as the most trusted business advisors, need to have the correct information to provide to their clients concerning bitcoin and other advanced payment technologies. See www.aicpa.org for video comments by AICPA CEO Barry Melanson concerning bitcoin.

One thing is certain; credit card transaction fees that were never built for the Internet will have to become more efficient. The genie is out of the bottle. There are too many examples of businesses that believe in the power of digital currencies. Both of the major bitcoin payment processors claim 26,000 merchants respectively accept bitcoin on their systems. See here (http://bitpay.com/) directory for a list of companies using bitcoin.

Whether or not digital currencies reach mainstream adoption may depend on how regulators and politicians react to them, but more efficient payment systems, especially for the Internet will never be the same.

 

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