We are pleased to announce the release of ABCast Episode 17 – Real Life Scenarios Part 2. In our conversation regarding real life scenarios to avoid and to attain, Episode 17 – Real Life Scenarios Part 2 begins with a comprehensive conversation regarding cryptocurrency and Non-Fungible Tokens or NFTs. Janathan Allen discusses the quagmire cryptocurrency has become for many US taxpayers and the complexity of tracking, recording and reporting qualifying “events” for crypto and NFTs under US Tax laws. Jan discusses the question at the top of the IRS form 1040 as well as the taxpayers’ signature “under penalty of perjury.” The discussion converges upon how the IRS will find individual US taxpayers with unreported crypto assets and transactions and the risks they face by failing to report activity to the IRS. “It’s not a matter of if…It’s a matter of when.”
In the next segment of ABCast Episode 17 – Real Life Scenarios Part 2 the discussion turns to real life challenges and how these decisions are made. Jan uses the example of the challenge of whether a business should pay the quarterly sales tax deposit to the CDTFA or pay suppliers. If the company in the example fails to pay suppliers they will literally go out of business. Jan explains the challenge and how the CDTFA would much prefer to help the company to stay in business and grow stronger by establishing a payment plan or some other deferred strategy. Jan discusses how the IRS views taxpayers who try to work with the agency through challenges as opposed to those who hide and hope not to be noticed. Jan also gives the real life example of a business who took a PPP loan during COVID, but the bookkeeper mis-recorded the transaction as “income” when in fact it should have been to debit cash and credit a liability.
ABCast Episode 17 – Real Life Scenarios Part 2 reminds us the importance of accounting from a business and personal perspective cannot be overstated. Accounting not only helps to reduce tax exposure and increase retained earnings, but helps in all aspects of transactional planning – the strategy of structuring transactions to reduce taxation exposures. The lively conversation turns to PIGs and PALs and how these offsetting tools help US taxpayers to reduce tax exposure and increase the amount retained in “hip pocket national bank.”
Listen to ABCast Episode 17 – Real Life Scenarios Part 2 and we hope you enjoy learning more about the important issues associated with real life issues regarding cryptocurrency and NFTs, business and personal domestic and international taxation and transactional planning. We invite you to meet with Janathan Allen and the experienced team at Allen Barron by contacting Allen Barron, or call 866-631-3470 to schedule a free consultation.
Read a Transcript of Episode 17 – Real Life Scenarios Part 2
