- Denver Head Tax
- Unemployment tax assessed by Colorado Department of Labor and Employment. This tax is assessed even on sole proprietors!
- Denver ad valorem tax
- FBAR Offshore account disclosure
- Estimated tax payments
Category Archives: Tax Preparation and Compliance
Cryptocurrency Tax Compliance
We are now performing tax compliance for taxpayers with Cryptocurrency, the Cryptocurrency net worth of which exceeds 1 million (U.S. convertible). We are the best at what we do.
Tax year 2017 is a critical tax year for Cryptocurrency. Getting 2017 correct will provide a foundation for huge gains in later years. You must seize the moment.
The Internal Revenue Service is focusing on noncompliant taxpayers in this space. This is evident by the John Doe Summons issued on Coinbase. As many of us have read, the Internal Revenue Service has obtained information about 14,355 Coinbase account holders. Coinbase has been ordered to provide the IRS with the taxpayer’s name,etc, for those individuals who have bought, sold, sent, or received more than $20,000. In addition, the Securities and Exchange Commission is paying attention, which is evident by statements made about Initial Coin Offerings (ICO’s).
The day of tax reckoning is inevitable. Time is of the essence to properly disclose huge transactions. Please feel free to call us. (303) 626-7000.
Keep your sanity during tax season.
There are a lot of pressures surrounding our voluntary tax system. There are deadlines and then there is honesty, to name a couple. What, however, is most important is your portrayal of your taxes to the IRS. This is the empowering moment of taxpaying Americans. At this moment you have the liberty to express your capitalist side as a business. You take the liberty to deduct business expenses in that regard while reporting the winnings of your entrepreneurial spirit. Tax is very much a positive vote for your future, so as you disclose and pay your tax, note to yourself that you are investing in your future and your family’s future.
Tax Compliance Check-Up
For Individuals, Small Businesses, Corporations, Partnerships, and Limited Liability Companies
Tax Compliance Checkup-Up by Philip Falco, Attorney, CPA
We have IRS e-services. We can quickly find out what is not making you or your company tax compliant.
For example, an old unfiled tax return, a quarterly filing, or an IRS Form 940 might not have been filed at some point in time. You might not even know that the IRS has the non-compliance flagged until it is too late. We can nip this in the bud and get you in 100% compliance. We also provide tax preparation services so we can actually prepare your unfiled returns for you.
This service can help minimize exposure to an IRS Audit, issues with Unfiled Tax Returns, and Criminal Tax indictment.
Give us a call if you would like us to do a tax check-up for you (303) 626-7000.
Blank Receipt – No Tax Deduction for Charitable Contributions
The U.S. Tax Court issued a decision concerning tax deductions of charitable contributions in Thad Deshawn Smith v. Commissioner of the Internal Revenue, October 2, 2014. The case is a great way to discuss what the IRS and Tax Court require as far as documentation.
Mr. Deshawn attempted to deduct a whopping $27,277 in noncash charitable contributions in 2009. He donated clothes, electronics, etc to AMVETS. AMVETS wrote Mr. Deshawn blank “tax receipts”. Have you ever noticed this practice when donating to Goodwill? Goodwill just hands you a blank receipt. Well that practice does not cut it.
The critical failure was that the receipts did not specify the items donated. Mr. Deshawn made a valiant effort to document the donation by creating spreadsheets. However, because there was no evidence that the spreadsheets were submitted (hint – signed) by AMVETS, no deduction was allowed.
Here is some technical background.
Contributions of $250 or More:
Section 170(f)(8)(A) provides that an individual may deduct a gift of $250 or more only if he substantiates the deduction with a contemporaneous written acknowledgment of the contribution by the donee organization. This acknowledgment must:
- include “a description (but not value) of any property other than cash contributed”;
- state whether the donee provided
any goods or services in exchange for the gift; and - if the donee did provide goods or services, include a description and good-faith estimate of their value. Sec. 170(f)(8)(B); sec. 1.170A-13(f)(2), Income Tax Regs.
The acknowledgment is “contemporaneous” if the taxpayer obtains it from the donee on or before the earlier of:
- the date the taxpayer files a return for the year of contribution; or
- the due date, including extensions, for filing that return. Sec. 170(f)(8)(C).
Contributions exceeding $500
For noncash contributions in excess of $500, taxpayers are required to maintain reliable written records with respect to each item of donated property. Sec. 1.170A-13(b)(2) and (3), Income Tax Regs.
These records must include, among other things:
- the approximate date the property was acquired and the manner of its acquisition;
- a description of the property in detail reasonable under the circumstances;
- the cost or other basis of the property;
- the fair market value of the property at the time it was contributed; and
- the method used in determining its fair market value. Sec. 1.170A-13(b)(2)(ii)(C) and (D), (3)(i)(A) and (B), Income Tax Regs. The taxpayer must include with his return “a description of such property and such other information as the Secretary may require.” Sec. 170(f)(11)(B).
Contributions Exceeding $5,000
For contributions of property (other than publicly traded securities) or similar items of property valued in excess of $5,000, the taxpayer must generally satisfy the substantiation requirements discussed previously and must also:
- obtain a “qualified appraisal” of the items; and
- attach to his tax return a fully completed appraisal summary. Sec. 170(f)(11)(C); sec. 1.170A-13(c)(2), Income Tax Regs.;
Tax Preparation and Planning for Entrepreneurs and High Net Worth Individuals
Tax Preparation and Planning for Entrepreneurs and High Net Worth Individuals
During Tax season, we perform the most sophisticated tax preparation for you. We optimize shareholder and member basis, losses, gains, carryovers and carrybacks. We ensure that you receive your deductions
Because we are vertically integrated, we provide you with simulated tax returns
If we find an error in your tax plan implementation, we bring it to your attention and provide our tax opinion.
We are vertically integrated. To us this means that we start with the pieces that compose your tax return all the way up to strategic planning, legal planning, and integrate both for you.
After Tax Season
Tax season isn’t the only time to think about taxes. Nearly every business decision you make has a tax consequence, and we believe working with a tax professional year-round can help you make informed decisions to minimize tax liabilities and take advantage of every possible incentive.
It’s absolutely necessary to gain a thorough understanding of your company’s operations, tax elections and methods, not only to prepare an accurate, complete set of returns, but also to find the most effective means to save additional tax dollars and meet your financial objectives.
From implementing tax-saving strategies and reviewing new legislation to evaluating current elections and amending returns, our staff works tirelessly throughout the entire year to find the most effective ways to save you tax dollars and keep more of your hard-earned profits.
We are working on strategies to minimize the new Healthcare (ObamaCare) 3.8% Tax on Net Investment Income. This tax is targeted at high income individuals (married filing jointly in excess of $250,000).
Click here to visit our Tax Preparation Page: Tax Preparation
Email us for a free consultation Phil@ColoradoLegal.com
Or call (303) 626-7000.