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☆ IRS aims to more than double its audit rate for wealthiest taxpayers in strategic plan update
▼ + stars: | 2024-05-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Internal Revenue Commissioner Danny Werfel speaks during his swearing in ceremony at the IRS in Washington, D.C., on April 4, 2023. The agency also renewed its focus on "tax fairness" with plans to increase audits on the wealthiest taxpayers, large corporations and complex partnerships. The IRS aims to more than double the audit rate for the wealthiest taxpayers with total positive income of more than $10 million by tax year 2026. This would bring the audit rate for these individuals to 16.5% in 2026, compared to 11% in 2019. The agency also plans to "nearly triple audit rates" on large corporations with assets over $250 million and boost audit rates "by tenfold" for large, complex partnerships with assets over $10 million, Werfel said.

Persons: Danny Werfel, Werfel Organizations: Washington , D.C, IRS, Finance, Fed Locations: Washington ,

☆ A financially independent couple that has built wealth doing 7 'live-in flips' has paid zero capital gains taxes on their property sales, thanks to an IRS rule
▼ + stars: | 2024-05-02 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

"One of our big strategies was 'live-in flip,'" Carl, who retired in his 40s and runs the financial independence blog "1500 Days to Freedom," told Business Insider. The Colorado-based couple is wrapping up their eighth live-in flip, in which they buy a house, rehab it while living there, and then resell it. While they haven't earned more than $500,000 on a flip yet, they could on the sale of their current live-in flip. To avoid paying capital gains taxes, "we're actually considering putting one of our daughters on the title," said Mindy. That way, they'd have three individuals on the title and could shield up to $750,000 from capital gains.

Persons: —, Carl, Mindy Jensen, Jensen, they're, it's, they've, Mindy, we're, they'd Organizations: Service, Business, IRS Locations: Colorado, New York City

☆ DOJ charges 'Bitcoin Jesus' with $48 million tax fraud, seeks extradition
▼ + stars: | 2024-05-01 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +2 min

(Photo by Danny Lee/South China Morning Post via Getty Images)The Justice Department unveiled criminal tax fraud charges this week against a prolific bitcoin investor named Roger Ver. He came to be known as "Bitcoin Jesus," for getting in early on the digital currency and making a fortune. The DOJ alleges that in preparing those tax filings, Ver underrepresented his bitcoin holdings and evaded taxes on them. The United States is seeking his extradition to face trial on eight counts related to tax evasion, mail fraud and filing false tax returns. According to the indictment, the IRS used a strategy called "clustering analysis" to track the blockchain and identify Ver's bitcoin transactions.

Persons: Roger Ver, Danny Lee, Ver, Bryan Skarlatos, bitcoin Organizations: South China Morning, Getty, Justice Department, Internal Revenue Service, DOJ, CNBC, eBay, IRS Locations: South, California, Caribbean, St, Kitts, Nevis, U.S, Spain, United States, Pest

☆ Crypto investor 'bitcoin Jesus' arrested and charged by the Justice Department with $48 million tax evasion
▼ + stars: | 2024-05-01 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +3 min

"Bitcoin Jesus" Roger Ver was arrested in Spain on charges of tax evasion this week. An early crypto enthusiast, he's been a long-time bitcoin evangelist, earning him the "bitcoin Jesus" nickname. AdvertisementVeteran crypto trader Roger Ver, also known as "bitcoin Jesus," was arrested in Spain and charged by the US Department of Justice with evading $48 million in taxes. Ver faces three charges of mail fraud, two charges of tax evasion, and three charges of subscribing to a false tax return. Ver, who was an early cryptocurrency evangelist, has been avidly promoting bitcoin for years, earning him the "Bitcoin Jesus" moniker.

Persons: Jesus, Roger Ver, Ver, he's, —, Agilestar —, Ver didn't, Binance's, Changpeng Zhao, Sam Bankman, Fried Organizations: DOJ, Service, Veteran, US Department of Justice, Justice Department Locations: Spain, St, Kitts, Nevis, US

☆ 39-year-old who makes $9,300/mo in passive income: My No. 1 piece of side hustle money advice
▼ + stars: | 2024-05-01 | by ( Jannese Torres | ) www.cnbc.com time to read: +6 min

Today, at 39, I have seven income streams, including affiliate marketing, blog and podcast ads, speaking engagements, digital courses, AirBnB rental income and brand partnerships. I used to use basic spreadsheets to reconcile my side hustle income and expenses, and I usually only did this at year's end, so I had little idea what was happening throughout the year. Setting up your business finances involves several important steps to ensure that you can effectively manage your income, expenses and overall financial health. Cash accounting records transactions when money actually changes hands, while accrual accounting records them when they occur, regardless of when payment is received. Sign up for CNBC's new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories.

Persons: Dinero, Jannese Torres Organizations: CNBC Locations: Puerto Rican

☆ Over $1 billion in unclaimed tax refunds is set to expire in just over 2 weeks, IRS says—here’s how to claim yours
▼ + stars: | 2024-04-30 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

The Internal Revenue Service says more than $1 billion in unclaimed tax refunds from the 2020 tax year is sitting in its coffers. Around 940,000 people across the U.S. have until May 17 to submit their 2020 tax returns and claim their portion of the unclaimed funds, according to the IRS. "There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns," IRS Commissioner Danny Werfel said in March. Typically, tax filers have three years to claim old refunds by the April 15 tax filing deadline. The IRS says that your refund may be withheld if you haven't filed your 2021 and 2022 tax returns.

Persons: haven't, Danny Werfel, Werfel Organizations: Internal Revenue Service, IRS

☆ Advice about 401(k) rollovers is poised for a big change. Here's why
▼ + stars: | 2024-04-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Johner Images | Johner Images Royalty-free | Getty ImagesA new U.S. Labor Department rule will significantly change the advice many investors receive about rolling money over from 401(k) plans to individual retirement accounts, legal experts say. watch nowA 'major shift' in rollover adviceThe new Labor Department rule aims to make more investment recommendations "fiduciary" in nature. The new Labor Department rule changes that, however. Good advisors are likely making an honest effort to do what's best for their clients, but hopefully the Labor Department rule would "bring up the bottom to a better quality," Reish said. However, many financial companies dispute the necessity of the Labor Department rule.

Persons: Rollovers, Katrina Berishaj, Ronon Stevens, Young, it's, Reish, Berishaj, They'd, Susan Neely Organizations: . Labor Department, Department, Labor, Economic, Labor Department, Young, American Council of

☆ A financially independent couple that built wealth doing 'live-in flips' is pivoting to private lending. It's more passive and earns them 'about 12%' — but you need 2 things to get started.
▼ + stars: | 2024-04-27 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +5 min

When he was working full-time while also DIY home flipping, Carl recalls putting in 80 hours a week. Shifting to a more passive real-estate strategy: Private lendingThe Jensens started experimenting with private lending in 2016. "The private lending generates such a nice return that it's difficult to be like, 'No, we don't want to have the easy money. To get started in private lending, you need capital and a network. They're confident in the people that they're lending to, "and that is the most important part about lending out money: lending it to somebody that's going to pay you back."

Persons: —, Carl, Mindy Jensen, It's, they've, Mindy, We've, who's, I'm, Let's, we're Organizations: Service, Business Locations: Colorado, New York

☆ IRS free tax filing pilot processed more than 140,000 returns, saved consumers $5.6 million in prep fees
▼ + stars: | 2024-04-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

IRS Commissioner Danny Werfel testifies during the Senate Finance Committee hearing on the fiscal 2024 IRS budget and the IRS' 2023 filing season, in the Dirksen Building in Washington, D.C., on April 19, 2023. This season, more than 140,000 taxpayers successfully filed returns using IRS Direct File, a free tax filing pilot from the IRS, according to the U.S. Department of the Treasury and the IRS. The program fully opened for certain taxpayers in 12 states in early March and saved filers an estimated $5.6 million in tax preparation fees for federal returns, IRS Commissioner Danny Werfel told reporters on a press call. Direct File surveyed more than 15,000 users and some 90% rated their experience as "excellent," the agencies reported. The IRS plans to release a more detailed report about the Direct File pilot "in the coming days," he added.

Persons: Danny Werfel, Werfel Organizations: Senate, IRS, Washington , D.C, U.S . Department of, Treasury, Finance Locations: Washington ,

☆ 9 ways rich real estate owners save big on taxes from putting mansions in trusts to donating rental property income
▼ + stars: | 2024-04-25 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +9 min

The richest 0.1% of Americans own $1.8 trillion in real estate, according to the Federal Reserve. Currently, individuals and married couples can gift or bequeath $13.61 million and $27.22 million, respectively, before a 40% federal estate tax kicks in. Here are nine little-known techniques that wealthy real estate owners use to pay less to Uncle Sam:Qualified personal residence trusts, better known as "QPRTs," effectively freeze the value of a real estate property for tax purposes. With an FLP, an individual — often a parent or two parents — pools their business assets, commonly real estate or stocks. The heirs don't own the trust assets, but rather have lifetime rights to the trust's income and real estate.

Persons: Uncle Sam, Trump, Sam Walton, Wrigley, Jeff Bezos, Rich, Ron Wyden, PPLI, Jackie O, I've, Edward Renn, remarries Organizations: Federal, Business, Walmart, Biden, Blackstone, Lombard, Taxpayers, IRS Locations: Trump, Florida, Wyoming, Plenty

☆ Saving in a 401(k) can come with unexpected tax bills. Here's what to check right away to avoid a surprise and 4 ways to reduce your taxes as you withdraw.
▼ + stars: | 2024-04-24 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +8 min

Depending on your tax bracket at the time of withdrawal, your 401(k) money could be taxed at around 20% or 30%. Note that if you have a Roth 401(k), which is funded with after-tax dollars, you won't be taxed when withdrawing. The longer you can wait to touch your 401(k) money, the longer you'll delay owing taxes. Finally, there's the "non-taxable portion," he said, which would be money in accounts like a Roth 401(k), Roth IRA, and HSA. Or do they have a Roth IRA that they can take it from tax-free to benefit them?"

Persons: —, Grant Neiland, there's, you'd, Roth, Neiland, you've Organizations: Service, Business, Carson Wealth, IRS, Roth IRA

☆ Here's what to do if you missed the federal tax deadline
▼ + stars: | 2024-04-23 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The federal tax deadline was April 15 for most filers — and if you missed it, you should file your return and pay your balance as soon as possible, experts say. The late filing penalty is 5% of your unpaid balance per month or partial month, capped at 25% of your balance. Here's why it may work this timeHowever, that doesn't mean you should rush to file a return if you're still missing key information, like tax forms for your investments or other earnings. With missing information, the IRS could flag your tax return for audit, processing could be delayed or you could receive an agency notice. Of course, some filers in disaster areas automatically have more time to file federal returns and pay taxes owed.

Persons: Mark Steber, Jackson Hewitt, Biden, Steber Organizations: Finance, IRS

☆ Labor Department issues rule to crack down on bad retirement savings advice
▼ + stars: | 2024-04-23 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Al Drago/Bloomberg via Getty ImagesThe Biden administration issued a final rule on Tuesday that cracks down on the investment advice that advisors, brokers, insurance agents and others give to retirement savers. The final rule takes effect on Sept. 23. Current retirement rules don't provide adequate protections to savers, Labor Department officials said during a press call Tuesday. Such a dynamic can "chip away" at Americans' savings, Gomez said. The amount of 401(k)-to-IRA rollovers is 'astronomical'The final rule doesn't differ significantly from the Biden administration's initial proposal, Labor officials said.

Persons: Al Drago, Biden, Obama, Lisa Gomez, That's, Gomez, Andrew Oringer, Oringer Organizations: U.S . Department of Labor, Bloomberg, Getty, Labor, Security, The Labor Department, Economic Advisers, Biden, Finance, Economic, Wagner, Department of Labor Locations: Washington, IRAs

☆ Here's what to know before withdrawing funds from inherited individual retirement accounts
▼ + stars: | 2024-04-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you've inherited an individual retirement account since 2020, you could have a shorter timeline to withdraw the money, which can trigger tax consequences. But there are a few things to consider before emptying an inherited account, experts say. Under the Secure Act of 2019, so-called "non-eligible designated beneficiaries," have a 10-year window to deplete an inherited IRA. Non-eligible designated beneficiaries are heirs who aren't a spouse, minor child, disabled or chronically ill. Certain trusts may also fall into this category. They just want the money," said individual retirement account expert and certified public accountant Ed Slott.

Persons: you've, RMDs, Ed Slott Organizations: IRS, Finance

Where to buy glasses online using insurance FAQsWhat is FSA/HSA? A FSA, or flexible spending account, is an account provided by your employer in order to save on taxes and pay for qualified expenses. An HSA, or health savings account, is a type of flexible spending account geared towards qualified medical expenses. By enrolling in a High Deductible Health Plan and opening an HSA, your monthly insurance premium is usually lower, while tax exempt dollars from your HSA pay for higher deductibles, copayments, coinsurance, and other health-related costs. When ordering glasses online, you'll be prompted for your PD, or pupillary distance.

Persons: Read, you'll Organizations: IRS

Basics of how home equity loans workWith a home equity loan, you use your home as collateral for a loan. Home equity loan terms vary, but you usually have anywhere from five to 30 years to repay the loan. Differences between home equity loans and HELOCsHome equity lines of credit (HELOCs) are similar to home equity loans in that they let you borrow from your home's equity. What's the difference between a home equity loan and a home equity line of credit (HELOC)? She covers mortgage rates, refinance rates, mortgage lender reviews, and homebuying for Personal Finance Insider.

Persons: you've, whittle, Molly Grace, Molly, Read, Aly J, Yale Aly J, Bob Organizations: Homeowners, Chevron, Business, Finance, Insider, Rocket Companies, Twitter, Yale, Forbes, Money Magazine, The Dallas Morning News, Bob Schieffer College of Communication Locations: Chevron, mgrace@businessinsider.com

☆ Express files for bankruptcy, plans to close nearly 100 stores as investor group looks to save the brand
▼ + stars: | 2024-04-22 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +4 min

The company said hours for remaining stores won't change and it will continue to accept orders and returns as usual. "The proposed transaction will provide Express with additional financial resources, better position the business for profitable growth and maximize value for the Company's stakeholders," Express said. "We are taking an important step that will strengthen our financial position and enable Express to continue advancing our business initiatives," he added. Last spring, Express acquired Bonobos' operating assets and related liabilities for $25 million from Walmart in a joint deal with WHP. The deal came as Express' "core business was weak, and cash was tight," GlobalData managing director Neil Saunders said in a Monday note.

Persons: –, Stewart Glendinning, Neil Saunders, Saunders, Kirkland Organizations: Express Inc, Longtime, Express, WHP, Simon Property Group, Brookfield Properties, Les Wexner's, CNBC, Walmart, Powerhouse, Ellis, Partners Locations: New York, U.S

☆ IRS waives mandatory withdrawals from certain inherited individual retirement accounts — again
▼ + stars: | 2024-04-19 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The IRS has again waived required withdrawals for certain Americans who have inherited retirement accounts since 2020. Before the Secure Act of 2019, heirs could "stretch" retirement account withdrawals over their lifetime, which reduced year-to-year tax liability. Now, certain heirs have a shorter timeline due to changed rules for so-called required minimum distributions, or RMDs. Under the Secure Act, certain heirs must empty inherited accounts by the 10th year after the original account owner's death. The latest penalty relief only applies to certain heirs, known as "non-eligible designated beneficiaries," subject to the 10-year withdrawal rule under the Secure Act.

Persons: Biden, Ed Slott Organizations: IRS, Secure, Finance

☆ Boeing's fleet of 8 corporate jets spent some 4,500 hours in the sky flying company executives last year, data shows
▼ + stars: | 2024-04-17 | by ( Taylor Rains | ) www.businessinsider.com time to read: +5 min

Boeing's corporate planes collectively flew about 4,500 hours across some 1,800 flights last year, according to data from the aviation-tracking website JetSpy. Jet Edge InternationalThe fleet's top airports include Chicago International Airport, Washington Dulles International Airport, and Boeing Field King County International Airport — all located near Boeing's corporate offices and factories. AdvertisementThe locations of Boeing's corporate fleet on April 12, according to JetSpy data. For instance, JetSpy data shows aerospace company Lockheed Martin collectively flew its five private jets for about 2,700 hours in 2023. AdvertisementBoeing wrote in the filing that its CEO "is required to use company aircraft for all business and personal travel for security reasons."

Persons: —, Dave Calhoun, Calhoun, Brian West, Lockheed Martin, Taylor Swift, Elon Musk, Max, messier Organizations: Service, Business, Boeing Business Jets, Canadian, Bombardier, Challenger, Jet Edge, Chicago International Airport, Washington, International Airport, Boeing Field King County International, Airport, Lebanon Municipal Airport, Wall Street Journal, Boeing, Lockheed, PepsiCo, Costco, Alaska Airlines, Calhoun . Locations: Westchester, New York, Lebanon, New Hampshire, South Carolina, New Canaan , Connecticut, American

☆ Here's what Mark Cuban's $275.9 million in taxes would cover for the US government
▼ + stars: | 2024-04-16 | by ( Erin Snodgrass | ) www.businessinsider.com time to read: +4 min

And yes, we know Cuban's tax bill won't go directly to paying for these programs, but for the sake of context, here's what his taxes could have funded. Cuban's $275.9 million contribution to the US government could fully back the department with nearly half still left over. Cuban's million could easily cover congressional paychecks and even account for President Joe Biden's $400,000 salary and Vice President Kamala Harris' $235,100 salary. So, Cuban's $275.9 million wouldn't quite be able to cover the potential three-hour DOD cost at $291,095,890.41. While $275.9 million might not seem like it would make a dent in that astronomical number, every little bit helps!

Persons: Mark Cuban, Donald Trump, —, Joe Biden, Jill Biden, Joe Biden's, Kamala Harris, It's Organizations: Service, Trump, Business, Government, Fund, NTSB, Transportation Safety Board, Transportation, DOD, Department of Defense, CNBC

☆ Three ways investors can minimize their tax payments
▼ + stars: | 2024-04-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

It’s particularly difficult for investors, he said, who have to report their earnings and losses from the market to the IRS. As an alternative, Harris, who currently heads financial services firm Evergreen Money and recently authored a book about reducing tax burdens, shared his three biggest tax tips for investors with Before the Bell. So for tax purposes, selling securities that have lost value can offset the taxes due on gains from successful investments. If your losses exceed your gains, you can carry the net loss (total losses minus total gains) into the next tax year, potentially reducing future tax burdens. If you have three children and two parents, that’s $108,000 in tax free money a year, Harris said.

Persons: They’ll, ”, Bill Harris, It’s, Harris, “, Roth, hasn’t, “ you’re, Laura, Anna Cooban, Brent, Germany’s DAX, Read, Tempore Mike McGuire Organizations: New, New York CNN, National Taxpayers Union Foundation, Paypal, CNN, Evergreen Money, Bell, Investments, Brent, Traders, CAC, FTSE, Nikkei, International Energy Agency, ANZ, Google, California Journalism, Meta, California, Pro, Tempore, ” Locations: New York, United States, Israel, Iran, Tehran, Syria, Shanghai, Paris, California, America

☆ New York tax preparer charged with causing more than $100 million in losses from fraudulent returns
▼ + stars: | 2024-04-15 | by ( Dan Mangan | ) www.cnbc.com time to read: +2 min

Damian Williams, U.S. Attorney for the Southern District of New York, speaks during a press conference in New York City, Sept. 22, 2023. A New York tax preparer was arrested Monday on charges related to causing "substantially" more than $100 million in tax losses through the filing of false returns — one of the largest tax frauds ever by a preparer, federal prosecutors said. The false information allegedly included bogus itemized deductions, fake capital losses, and phony business expenses and tax credits. ATAX New York grossed more than $15 million from 2016 through 2019, according to Thomas Fattorusso, the IRS special agent in charge of criminal investigations. Alvarez was the CEO, owner and manager of ATAX from 2010 through 2020, and the firm during that time prepared more than 90,000 income tax returns, according to prosecutors.

Persons: Damian Williams, preparer, Rafael Alvarez, Alvarez, Thomas Fattorusso, ATAX Organizations: Attorney, Southern, of, New, Manhattan U.S, ATAX New, IRS, Attorney's Locations: U.S, of New York, New York City, New York, York, Manhattan, ATAX, ATAX New York, United States, disgorgement

☆ State tax officials are using AI to go after wealthy payers
▼ + stars: | 2024-04-15 | by ( Robert Frank | ) www.cnbc.com time to read: +2 min

Even as the IRS makes headlines for cracking down on the wealthy, state tax collectors have become even more aggressive with audits of high earners, according to tax attorneys and accountants. During Covid many of the wealthy moved from high-tax states like California, New York, New Jersey and Connecticut to low-tax states like Florida or Texas. Klein said state tax auditors and AI programs are examining cellphone records to see where the taxpayers spent most of their time and lived most of their lives. Many of the wealthy in New York City who moved kept their apartments with most of their belongings. State tax authorities are claiming that since they didn't move with all of their household items, for tax purposes they didn't actually move.

Persons: Mark Klein, Hodgson Russ LLP, it's, It's, Klein Organizations: IRS, of Taxation, Finance, Artificial, New Locations: New York, California , New York , New Jersey, Connecticut, Florida, Texas, York, Colorado, New York City

☆ IRS expects ‘a million returns' every hour on Tax Day, commissioner says. What last-minute filers need to know
▼ + stars: | 2024-04-15 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

If you're missing tax forms, the tax deadline is your last chance to file an extension, which pushes the filing deadline to Oct. 15. Sean Lovison Founder of Purpose Built Financial ServicesAccording to the IRS, those who can't pay taxes by the deadline have options. Most Americans qualify for IRS Free File, which offers free guided tax prep software from several partners. "It's a product that we're very proud of," Tim Hugo, executive director of the Free File Alliance previously told CNBC. This season, millions of taxpayers also qualify for IRS Direct File, a free tax filing pilot program from the IRS.

Persons: Sean Lovison, Werfel, Tim Hugo Organizations: IRS, Alliance, CNBC, Treasury Locations: filers, Maine, Massachusetts, Philadelphia, Arizona , California, Florida , Massachusetts, Nevada , New Hampshire , New York, South Dakota , Tennessee , Texas, Washington and Wyoming

☆ Today is Tax Day for most Americans. Here’s what you need to know
▼ + stars: | 2024-04-15 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +5 min

New York CNN —It’s Tax Day in the United States for most Americans, and there are still plenty of people racing to file their 2023 income tax returns up until the clock strikes midnight. “With the April deadline upon us, we’re seeing a flurry of tax returns coming in during the final hours. So if you’re a last-minute filer, you’re in good company — and even more so if you expect a refund. However, they must pay whatever they still owe the IRS for tax year 2023 by April 15. Do all this even if you relied on a tax program or tax professional to prepare your return.

Persons: We’ve, Danny Werfel, Werfel, don’t, you’re, haven’t, ” Werfel Organizations: New, New York CNN, Patriots, IRS, … Locations: New York, United States, Israel, Massachusetts, Maine, Washington, DC

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