Tax Resolution Attorney John P. Willis Alerts Taxpayers To The Continued IRS Growing Interest In Collecting Taxes On Digital Assets.
Tax resolution attorney John Willis, CEO, and founder of IRSALLSTAR, provides the revised IRS question that appears on the 2022 Tax Year Form 1040 regarding digital assets along with the reasons that would lead taxpayers to answer “yes” or “no” to that question.
Fairhope, AL, February 03 2023: Tax Attorney John Willis, CEO, and founder of IRSALLSTAR.com, recently published an article on his website entitled “The IRS Gets More Real About Their Interest In Virtual Currencies.” Mr. Willis reminds taxpayers that despite the reason for the creation of “virtual currencies,” the IRS considers them very real and tangible.
Willis writes, “Some people call it cryptocurrency. Others call it virtual currency. Some refer to digital assets. The IRS now lumps each of those things and more, including non-fungible tokens (NFTs) into the singular phrase of ‘digital assets.’ And” he adds, “the IRS has a real, and continuously growing interest in getting their cut of the value of all ‘digital assets.’”
As Willis points out, “On the 2022 tax return form, the IRS asks a question that all taxpayers must answer. The question has been revised and clarified from the previous tax season to update terminology and leave no room for doubt or error.” He posts the question, saying “Here it is: ‘At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? A digital asset is defined by the IRS as a digital representation of value that is recorded on a cryptographically secured, distributed ledger. Common digital assets include convertible virtual currency and cryptocurrency, stablecoins, and nonfungible tokens (NFTs).’”
“So,” Willis writes, “how do you know if you should answer ‘yes’ or ‘no’ to the IRS question regarding digital assets? According to the IRS, taxpayers must check ‘yes’ if they:
- Received digital assets as payment for property or services provided
- Transferred digital assets for free (without receiving any consideration) as a bona fide gift
- Received digital assets resulting from a reward or award
- Received new digital assets resulting from mining, staking, and similar activities
- Received digital assets resulting from a hard fork (a branching of a cryptocurrency’s blockchain that splits a single cryptocurrency into two)
- Disposed of digital assets in exchange for property or services
- Disposed of a digital asset in exchange or trade for another digital asset
- Sold a digital asset; or
- Otherwise disposed of any other financial interest in a digital asset.”
The entire article can be read at: LINK HERE
ABOUT JOHN WILLIS
Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 25 years and he brings together an abundance of skills and experience that can be of assistance to almost anyone.
ABOUT THE IRSALLSTAR TEAM
The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed, and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities.
To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.