Loss on the Decline in Value of Cryptocurrency

Cryptocurrencies, a type of digital asset, can be a valuable source of tax losses. In fact, harvesting tax losses at or near the end of the year is a well-recognized tax planning strategy. This entails selling crypto positions that have sustained losses and immediately buying them back. This is not available for other assets, such…

Innocent Spouse Can Benefit from Tax Savings

Innocent spouse relief is a complex and nuanced area of tax law that can be difficult to navigate. In order to successfully file a claim, one must have a thorough understanding of the rules and requirements. One example of this complexity is found in Section 6015(c), which does not require that the innocent spouse not…

Is IRS Bound by Social Security Disability Determination?

If the Social Security Administration determines that you are disabled, does the IRS have to accept that determination for tax purposes? It is one government is it not? The court considered this in Gentry v. United States, No. 3:18-cv-00581 (D. Nev. 2019) for the disability exception allowing for a longer period of time to file…

A Closer Look at Innocent Spouse Relief

Innocent spouse relief allows one spouse or ex-spouse to be relieved of liability for an income tax incurred during the marriage.  This relief can provide a much-needed lifeline to taxpayers who are divorced or contemplating divorce. Injured Spouse Relief is not Innocent Spouse Relief Before considering the innocent spouse rules, it is helpful to consider…