For federal tax purposes in 2025, cryptocurrency is generally treated as property, not cash. That means many crypto transactions trigger tax consequences under the same broad income principles that apply to other property transactions. If you sell crypto for dollars, trade one token for another, use crypto to buy goods or services, receive crypto for...
If a taxpayer cannot pay a federal tax debt in full, the two most common IRS resolution paths are an installment agreement and an offer in compromise. An installment agreement allows the taxpayer to pay the liability over time, generally in monthly payments. An offer in compromise allows the taxpayer to settle for less than...
For 2025, federal and state tax filing duties are related but not identical. A taxpayer may have to file a federal return, a state return, both, or in some cases neither, depending on filing status, gross income, age, residency, source of income, and whether special filing triggers apply. Federal filing duties are governed primarily by...
A properly structured exchange can defer recognition of gain when a taxpayer exchanges qualifying real property held for productive use in a trade or business or for investment for other qualifying real property of like kind. In 2025, that means the taxpayer generally does not currently recognize capital gain on the exchanged real estate, except...
Most tax returns are accepted as filed. But some returns are selected for examination based on mismatches, risk scoring, related-party issues, or specific compliance priorities. If you want to reduce audit risk, the key is not guessing at “secret red flags.” It is understanding the IRS’s legal authority, how returns are selected, and which reporting...
Medical expenses can create meaningful tax deductions, but the rules are narrower than many taxpayers expect. For 2025, individuals who itemize deductions may deduct only the portion of qualifying medical and dental expenses that exceeds 7.5% of adjusted gross income (AGI). That threshold is the starting point, not the whole rule. To claim the deduction...
Starting a side hustle can be a smart way to earn extra income, test a business idea, or build toward full-time self-employment. It also creates tax obligations that many first-time business owners do not expect. In general, if you operate your own business or have other self-employment income, such as from babysitting or selling crafts,...
If you filed a joint federal income tax return and later learned there was additional tax due because of your spouse’s or former spouse’s mistake, you may be able to ask the IRS for innocent spouse relief. This relief can, in some cases, remove all or part of your responsibility for tax, interest, and penalties...
If you want to avoid an unpleasant surprise when you file your 2025 return, the goal is simple: make your withholding match your actual 2025 tax liability as closely as possible. Too little withholding can leave you with a balance due and possible penalties. Too much withholding can mean a large refund, but it also...
An IRS letter does not automatically mean you are being audited or that the IRS is about to levy your bank account. Many notices are routine. Some advise that you have a balance due, some say the IRS changed your return, some ask for more information, and some notify you of processing delays. The key...
Copyright by Accu-Tax, Inc. All Rights Reserved.
Copyright by Accu-Tax, Inc. All Rights Reserved.
