BATCH [Baum Accounting, Tax & Computer Help]

A very welcome relief. The 5th Circuit has issued a TRO against the Corporate Transparency Act requiring every business in the USA to file a Beneficial Ownership Report by January.

This requirement was just another example of the Big Bro Nanny State overstepping it's CONSTITUTIONAL Authority. This memo with Chuck Norris probably says it BEST.

Notice how the Governors & Mayors resistance to any deportation is "protecting their CITIZENS & residents."

The latter don't have the same RIGHTS as LEGAL citizens.

WARNING: DO NOT OPEN OR REPLY.

A new phishing email trying to get your personal info.

I'm not a believer of investing in digital assets. However, I am seeing more & more clients who are.

As such, IRS is now proposing a formal reporting of any proceeds. Just like all other tax on capital gains, I personally believe any tax is a "double whammy," because the gains are really nothing more than another type of INFLATION.

Internal Revenue Service (IRS)
Digital Asset Proceeds from Broker Transactions.
OMB Number Control No.:
1545-NEW.
Form Numbers:
1099-DA.

Abstract:

Form 1099-DA is used by brokers to report proceeds from (and in some cases, basis for) digital asset dispositions to taxpayers and to the IRS (Internal Revenue Code section 6045(a)). Taxpayers may be required to recognize gain from these dispositions of digital assets. Reporting is also required when brokers know or have reason to know that a corporation in which a taxpayer owns digital assets, that is also stock, has had a reportable change in control or capital structure. Taxpayers may be required to recognize gain from the receipt of cash, services, digital assets, or other property that was exchanged for a digital asset that is also the corporation's stock.

BEWARE, OF FAKE CHARITIES!

Disasters like Helene always seem to bring out the evil in people.

Internal Revenue Service warned taxpayers about groups masquerading as charitable organizations to attract donations from unsuspecting contributors.

In natural disasters and other tragic events, it’s common for compassionate individuals to donate money to help the victims. Unfortunately, scammers often use fake charities as a cover to not only obtain money but also gather sensitive personal and financial information that can be exploited for tax-related identity fraud.

You can always check by using the Tax-Exempt Organization Search (TEOS) tool on IRS.gov to ensure legitimacy.

You can also check at Charity Navigator - www.charitynavigator.org
or Guidestar - www.guidestar.org

Scammers who might use email communications or manipulate caller IDs to deceive people into donating funds to charities.

These fraudsters often target groups such as seniors and those with limited English proficiency.

Here are some helpful tips to avoid getting scammed:

Don’t give in to pressure.
Scammers often create situations to get people to make
payments. Genuine charities are always grateful for donations.
Donors should take their time and research before making a
charitable contribution.

Exercise caution
When making donation payments. Avoid any charity that
requests gift card numbers or wire transfers. It’s better to pay by
credit card or check after ensuring the charity’s authenticity.

Verify the legitimacy of the charity.
Scammers often use similar-sounding names for charities to
confuse people. Before donating, potential donors need to ask
the fundraiser for the charity's name, website and mailing
address so they can independently verify its authenticity. Use
the special IRS TEOS tool to verify if an organization is a
legitimate tax-exempt charity.

Avoid sharing too much information.
Scammers are always on the lookout for both money and
personal data. Never disclose Social Security numbers, credit
card numbers or personal identification numbers. Only provide
bank or credit card details after confirming the charity's
legitimacy.

Nonprofit data for donors, grantmakers, and businesses | GuideStar | Candid Find and check a charity using Candid's GuideStar. Look up 501(c)(3) status, search 990s, create nonprofit organizations lists, and verify nonprofit information.

Beware of offer in compromise "mills" that falsely claim their services are necessary to resolve IRS debt.

As in past years, companies running OIC mills continue heavily advertising their promises to settle taxpayer debt at steep discounts for pennies on the dollar.

While OIC is a legitimate IRS program, many taxpayers do not meet the technical requirements for the tax resolution program.

Often, they incur excessive fees for information they could have easily obtained for free by using the IRS's Offer in Compromise Pre-Qualifier tool.

Harriss endorsed by IRS-affiliated union: ‘Get ready to be taxed to death'

The National Treasury Employees Union, a union that represents various federal agents – including those of the Internal Revenue Service – put out a statement this week praising Harris for increasing the IRS’ budget and endorsing her for president.

The HATCH Act needs to be amended to include IRS employees as "further restricted employees."

Just because they are in a UNION they should not be allowed to engage in a PARTISAN POLITICAL activity.

Current law defines further restricted as those "employed in ... enforcement type agencies.

Always nice when your effort is recognized by a client. This was someone whose Dad & Mom passed during the year and needed both final (1040) & estate (1041) returns.

SCAM ALERT

A single member LLC is considered by IRS as a DISREGARDED ENTITY, which means the activity is taxed as Self-Employed on a Schedule C.

Also an LLC is automatically taxed as a PARTNERSHIP where the net income is also taxed as Self-Employed.

There is a significant advantage to electing to be taxed as an S-Corp. Here is a nifty comparison.

I have been using PCMatic for several years. Ever since I was attacked with Ransomware. It's absolutely the best. Not like all the others that are bloated. You can't beat the price either.

They also provide an unlimited support service for all your devices.

www.pcmatic.com