Geopolitical events evoke emotions and irrational behavior in all of us. Whether you are young or old, the idea of another country attacking another country sucks. The obvious questions arise:
“What are they thinking” and “Whose idea is this”
War has existed since the beginning of time and, unfortunately, will continue. The new ongoing war is a cyberwar that may not be the attack of tanks and missiles but the denial or infiltration of our internet and technology. Our blog is about finances that impact your net worth for you and your family, so I will not dwell on the geopolitical implications of the ongoing Russian attack.
Let’s focus on how we can eliminate financial stress in your life.
I am an optimistic person, yet I always want to prepare for what might go wrong or that I need to prepare for the impact of an emergency.
Credit/Debit Cards versus Cash
Do you have cash available to you right now without going to the bank?
The answer needs to be “YES.”
If this ongoing war impacts our banking system from cyber-attacks, you will want to have cash on hand. You do not want to find yourself standing in line at the ATM trying to get cash. Follow the Boy Scout motto, “Be Prepared,” and have cash available.
IRS Security – Tax Season is Prime Time for IRS SCAMS
As the April 15th deadline approaches, the IRS SCAMS will increase. They will show up in telephone calls, emails, and text messages. Here is what you need to know and avoid:
- The IRS will not call you about legal action.
- Hang up on fake IRS Scammers
- Don’t respond to text messages, emails, or social media posts threatening legal action
- Don’t clink links, and don’t provide financial information to senders.
- Every tax preparer has an IRS Preparer ID Number; make sure yours does
- All paid preparers are required to have an IRS PTIN.
- Don’t sign a blank return
- Any refund you receive should go to your bank account, not the preparers.
For more information on these and other IRS SCAMS check out
https://www.irs.gov/newsroom/tax-scams-consumer-alerts
Crypto
Yes, Virginia, Crypto is taxable.
Many have ventured into the world of Cryptocurrencies without thinking about the taxation of their transactions.
According to IRS Notice 2014-21:
In general, the sale or exchange of convertible virtual currency, or the use of convertible virtual currency to pay for goods or services in a real-world economy transaction, has tax consequences that may result in a tax liability.
The keywords to note are the use of “Virtual Currency to pay for goods or services.” This conversion from cryptocurrency to a hard asset potentially creates a taxable transaction. The IRS is focusing on cryptocurrency compliance. In March 2021, the IRS announced the launch of Operation Hidden Treasure, a new enforcement initiative for tax violations related to cryptocurrency. Failure to report these transactions will result in penalties and interest.
Questions, Concerns
There is no such thing as a “stupid or bad question.” If you don’t know, then ask us.
Give us a call at 214-239-4700, and one of our team members can work with you to find an answer.
Michael Tannery CPA CDFA® AIF® ● CEO
Registered Principal | Tannery & Company
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The opinions expressed in this material are for general informational purposes only and are not a substitute for professional advice. Individual circumstances do vary.
