Court Rules that Coinbase Accounts Must Be Reported to the IRS

Last year the IRS issued a “John Doe” summons on all U.S. Coinbase customers who had used convertible virtual currency between 2013 and 2015. Coinbase’s challenge to the summons has failed in part and succeeded in part – a federal court judge recently ordered Coinbase to release information about Coinbase...

The Use of Expert Testimony in Tax Court, Part II

In Part I, we introduced the Feinberg vs. Commissioner of Internal Revenue case, which demonstrates the financial challenges faced by marijuana businesses due to their inability to deduct ordinary and necessary business expenses under 26 U.S. Code §280E. It also provides us with guidance as to the limits of expert...

The Use of Expert Testimony in Tax Court, Part I

The IRS is very aggressive in its audits of marijuana businesses, doing “random audits” of nearly everyone in the industry – particularly if their operations are large and profitable. A recent case involving the owners of a Colorado medical marijuana dispensary highlights the devastating impact of federal tax law on...

Planning Your Personal and Business Affairs under the New Tax Cuts

The Tax Cut & Jobs Act, signed into law on December 22, 2017, made changes to the U.S. tax system that affects nearly everyone. It is now more important than ever to meet with the tax attorneys at Moskowitz, LLP to make sure that your personal financial and business affairs...

Business Owners! Get Ready to Meet with Your Tax Professional

In our previous blog post we presented a list of tax forms and other documents that taxpayers should bring to their tax professional or accountant’s office for accurate preparation of their individual 1040. In this post, we are going to add more items to that list that are applicable to...

Attorney General Jeff Sessions Rescinds Cole Memo

The 2013 Cole Memo was a significant step forward for the cannabis industry, providing practical and useful guidelines to keep the federal government from pursuing prosecutions in states that have legalized marijuana – guidelines such as harsh penalties for driving under the influence, prohibiting interstate distribution, and establishing a minimum...

Update on IRS Offshore Initiatives: Investigations and agreements with financial institutions worldwide

In our last post, we noted that the U.S. government goes to great lengths to identify and prosecute noncompliant taxpayers, as well as promoters and financial institutions who assist U.S. taxpayers avoid their tax obligations by hiding their offshore income and assets. Some recent plea agreements with large financial institutions...