Deducting Fertility Treatments: The Morrissey Case, Part I

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26 U.S. Code § 213 provides a tax deduction for any medical and dental expenses that a taxpayer incurs during the year that are not compensated for by insurance or otherwise – this includes “the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any...

Government Regulation of Cryptocurrency

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Governments throughout the world have begun developing regulations for cryptocurrency exchanges. In this post, we will provide an overview of how various U.S. government agencies view cryptocurrencies and what they are doing to prevent their misuse. The Internal Revenue Service Digital currency = property In 2014, the IRS issued Notice...

Cannabis Business Under the New Tax Law

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The 2017 Tax Cut and Jobs Act (TCJA) made significant changes to the U.S. taxation system, and individuals in the marijuana industry should understand how those changes affect them. Here are three of the most significant tax issues that may impact your cannabis business under the new tax law: No...

The Cannabis Cultivation Tax

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As of January 1, 2018, a cannabis cultivation tax applies to all harvested cannabis intended for either medicinal or recreational use. The tax must be paid when you sell or transfer the cannabis to a distributor or manufacturer, in accordance with a fee schedule that is based on the category...

Cannabis Licensing Regulations Under Fire

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The California Department of Food and Agriculture (CDFA) began issuing cannabis cultivation licenses on January 1, 2018, and the lawsuits have already commenced. The California Growers Association filed suit in late January arguing that the CDFA has awarded a disproportionate number of “small grower” licenses to a handful of large...

Advanced 1031 Exchange Techniques

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A common misconception about 1031 exchanges is that they can only be conducted in one manner – a sale and then a purchase through a third party facilitator. In fact, 1031 exchanges have evolved to include numerous tax strategies and structures. Here are a few of the many ways to...

1031 Exchange Tax Audits

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1031 exchanges are among the most closely scrutinized tax issues for auditors – they are widely used and frequently misused, with many investors running afoul of the rules. In this blog post, we will outline the main reasons for most 1031 audits, and what to look out for under the...

Cryptocurrency Holders: Avoid a Tax Audit!

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The recent Coinbase, Inc. case marks the beginning of a new phase in IRS investigations, and U.S. taxpayers should beware that our government is unlikely to relinquish its pursuit of digital currency holders. This won't show. The IRS’s success in identifying and pursuing people with foreign accounts has forever changed...

IRS Focus: Tracking Cryptocurrency

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In our recent blogs on the new Internal Revenue Service – Criminal Division (IRS-CI) priorities, we noted that new IRS-CI director John D. Fort has placed his department on high alert for tax fraud involving bitcoin and other digital currencies. Here, we discuss U.S. taxpayer noncompliance and various cryptocurrency tax...

2018 Priorities of the IRS Criminal Investigation Division (IRS-CI):
Part II, Two New Initiatives for Identification and Investigation of Tax Crimes

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Despite the reduction in its budget, the IRS Criminal Investigation Division (IRS-CI) has begun to implement two new initiatives that hope to improve the department’s already impressive success rate. Last year, the IRC-CI made 2,251 criminal tax prosecution recommendations, which resulted in a conviction rate that exceeded 90%. On August...