IRS Position on Cryptocurrencies

The IRS determined that because cryptocurrencies, like bitcoin, are not issued by a sovereign, bitcoin and its brethren are not currency.  The IRS holds that cryptocurrencies are personal property in much the same manner as owning shares of stock in Amazon or Ford Motor Company.   Therefore, the IRS treats cryptocurrencies as a capital asset, subject to either short-term or long-term capital gains and losses. Each time you acquire...

Read More

Potential Changes to Law regarding Inherited Real Property in Kansas

The Kansas Revisor of Statutes is considering adopting the UPHPA. The Uniform Partition of Heirs Property Act (UPHPA) helps preserve family wealth passed to the next generation in the form of real property. Affluent families can engage in sophisticated estate planning to ensure generational wealth, but those with smaller estates are more likely to use a simple will or to die intestate. For many lower- and middle-income families, the majority of...

Read More

Registration of Foreign Judgments in Kansas

Kansas provides a statutory procedure by which a judgment creditor may file an authenticated or certified copy of a judgment entered by a court of competent jurisdiction in another state or commonwealth in the appropriate district court in Kansas.  Once the foreign judgment is entered in Kansas, it carries the full force and effect of a Kansas judgment, subject to the laws of the foreign state or commonwealth as to issues like statutory...

Read More

Missouri Legislature Overrides Gov. Nixon’s Veto, Instructional Activities Exempt from Sales Tax

The Missouri General Assembly voted on September 14, 2016 to override the Governor Nixon’s veto of Senate Bill 1025. Sponsored by Sen. Will Kraus, R-Lee’s Summit, SB 1025 now defines instructional classes given at dance studios, martial arts facilities, gymnastics facilities and other fitness facilities as educational classes for tax purposes. Under current law, the definition of “sale at retail” for purposes of sales tax law includes...

Read More

Notable changes in tax law compliance for 2016 and 2017

There are increased penalties for failing to file information returns, like 1099s, timely/correctly.  Current penalties are $100 for each return.  Pursuant to the Trade Preferences Extension Act of 2015 Penalties will increase to $250.  Further, penalties double to $500 for “intentional disregard”.  These changes are effective starting January 1, 2016.  Finally, if the taxpayer takes quick corrective action and re-issues the...

Read More

New Partnership/LLC Tax Audit Rules

Under recently issued new rules, the IRS will conduct a single partnership audit, and partners have no rights to participate.  A “partnership representative” will have the sole authority to act on a partnership’s behalf with the IRS.  If an audit results in an adjustment, the default rule is that the partnership itself will be liable for the taxes.  Partnerships may, however, elect to push out the tax liability to their partners...

Read More