05 Mar Procrastination, A Bit About Bitcoin, And A Red Hot Tax Alert
Procrastination about filing your tax returns is the heart of today’s blog. However, you will also find more about Bitcoin and a brand new IRS alert about a tax scam, too. So we begin this week with not only one, but three hot topics in the tax arena.
Procrastination is the curse of tax season and we are seeing quite a bit of it this year. However, most experts are unworried about procrastination. They know exactly how consumers might be reacting to this year’s delayed tax deadline. You are probably aware it is April 17, 2018, rather than the traditional April 15 date. It’s a perfect excuse. Is that is why some Americans are putting off filing?About the Built-in Delay Beyond the Traditional April 15 Date
You see, April 15 falls on a Sunday, which would normally make Monday the proper day for the deadline. However, April 16 is Emancipation Day in Washington D. C. And it is a legal holiday.
Thus, April 17 is the big deadline day, this year.
No Excuse for Procrastination: First Big Reason Some Taxpayers Are Delaying Filing in 2018
The two-day respite from the normal April 15 day might be the 2-day window of time some taxpayers believe they need.
Please don’t let it be your excuse to procrastinate in filing your tax return. The tax professionals at Gavrilov & Co warn you that procrastination is a very poor idea.
Second Big Reason for Procrastination
The second justification for procrastinating might be that some higher-income individuals are hoping against hope they could find some benefit, or perhaps a loophole or two, by waiting to file complex tax forms late in the season.
Professionals at Gavrilov & Co ensure you that we know the laws, and the details therein. Waiting until the last minute to file your return will probably not help you.
On the other hand, if you believe you have a complex tax situation, it’s best to file sooner than later. You see, the sooner you decide to file, the better chance you will have of getting an appointment from us for help.
Special Note: If the Bitcoin Niche doesn’t interest you, skip down to the next section of this blog, which will undoubtedly.
News Flash: Procrastination Won’t Change the Rules about How the IRS is Treating Cryptocurrency
We have sort of a news flash for owners of Bitcoin, Etherium and Similar Types of Cryptocurrency. Procrastinating until the last minute to file your return will not change the two big rules regarding your tax:
For taxpayers buying and selling cryptocurrency as an investment:
For you, we are calculating gains in the same way as buying and selling stock. You see, the Internal Revenue Service issued a ruling to taxpayers way back in 2014. They decreed that cryptocurrency should “be treated as a capital asset like stocks, bonds, and other investment properties.”
Simply put, as we have said previously, “it means that capital gains rules apply to any gains or losses.”
We saw the same problem back in 2015. “Early data from one popular tax preparation service shows that only a minuscule proportion—just .04%—of U.S. tax filers have reported their cryptocurrency gains and losses to the Internal Revenue Service so far this year. That’s far fewer than the 7% of Americans who are estimated to own Bitcoin or another cryptocurrency, and who are likely to owe taxes to the IRS on those investments.”
And if you only use your Bitcoin to buy and sell things, you still owe proper tax.
Beware. Fortune magazine gives cryptocurrency holders this clever encouragement with a trendy vernacular: “Dudes, pay your taxes.”
Allow Us To Repeat, Re-state and Reiterate
Remember, “the IRS considers digital currencies like bitcoin, Ethereum, Ripple and Litecoin to be property.” If you buy it, mine it, or sell it, you should claim your profits and losses.In the old days these were rarely reported. However, the IRS is cracking down on regulating this, so beware. With court victories and new laws, the government is keeping a watchful eye on cryptocurrency and block-chain economy.
If Fear of New Tax Code Makes You Procrastinate…
What if you’re a tax procrastinator but you are not just busy or lazy. You are actually afraid.
You’re afraid of not doing it correctly.
You’re afraid of falling asleep while figuring out the software. Fine. No judgment!
1. We have members of the tax squad here at Gavrilov & Co who will be thrilled to dig into your half-finished forms and explain the new laws.
2. They are so fast, so friendly and so efficient, you’ll never, ever waste time with tax software again.
3. Perhaps hesitancy and procrastination are is afflicting you from embarrassment. It’s normal to feel afraid to reach out to a pro with a problem. If this fear is causing your procrastination, please relax because you are not alone.
In 2015, 78.4 million taxpayers turned to a professional for help. In 2016, 78.7 million taxpayers turned to us and folks like us, the helpful hands and hearts of the professional tax accountant industry.
4. Perhaps time is generating your procrastination. So we invite you to put a priority on your time. Use it to do what you do best. Taxes are what the tax pros do best. Gather up some papers and corner just a little time; then leave it up to Gavrilo & Co and their tax squad to minimize your pain and stress.
Procrastination Reason #4: Fear of Getting Audited
Another subgroup of procrastinators are those who unjustly fear an IRS audit. Learn the facts behind audits. Comfort yourself with the fact that “Roughly the same number of people visit emergency rooms each year after slipping or falling in a bathroom as are selected among the general public for IRS audits.”
That’s not that large of a group. For more anxiety abating answers, check out the statistics in this online resource.
The Opposite of Procrastination is Motivation
Perhaps sometimes you need to reward yourself in order to get motivated to finish your tax returns. (We won’t judge you
for bribing yourself to enter our doors at Gavrilov & Co., far from it, we’ll believe you are smart.)
The obvious reward is that wonderful tax refund. Although we do not condone wasting refund money or using it for a big spurge. We still think a small bribe to rev up your self-motivation is an innocent indulgence. Just promise yourself to use a fraction of your refund for yourself to pay off a nagging little debt or buy a really nice dinner with a special someone.
Those types of “bribes” would be symbolic rewards with enough pleasure involved to reward yourself for doing what you should have done weeks ago. We’re not advocating a big post-refund splurge here.
Our smiles will also reward you; you might not have any idea how motivating it can be to have the advice of a tax pro. We will be proud if you bask in a feeling of accomplishment as you complete this decidedly adult task of citizenship.
There’s A Secret Sauce served with the Gavrilov & Co Tax Pro!
The secret you learn after your first trip to a tax pro: You see if you are already depressed because you know your refund won’t even buy you that special dinner. Well, we can show you strategies for next year’s taxes.
Then you might garner enough of a tax refund to do our favorite and wisest reward with the money: Save it.
Red Hot Tax Alert: Don’t Miss This
Once again we must inform you of a shiny new tax scam warning from the IRS. Here it is in a nutshell:
· Scam artists are stealing your tax data and then actually putting money in your account, your supposed tax refund.
· Surprise! The thief actually filed a fraudulent tax return as if he is you. (Hashtag #Identity theft, huh?)
· You might be happy at first, thinking it was fast service, and then, a little puzzled.
· Then the cyber thief contacts you and confides that the government made a mistake in depositing the money into your account by accident.
· Then your cyber-criminals demands that you return the funds. They give you a procedure and an address to wire the money immediately or they will bring in local law enforcement.
Of course, that address has nothing to do with the IRS. It simply belongs to the thieves. Likewise so does your money if you are foolish enough to send it.
Once again, this is not the procedure of the IRS. They do not call and demand instant payment. And they do not threaten with lawsuits and law enforcement. But early warnings of scams like this one are a good reason to invest in a tax pro you can trust.
Thank you for reading the Gavrilov & Co Accountants and Tax Service Blog –and Happy Filing!