Manny Trelles, CPA Tax Manager Recently, the IRS issued additional guidance on crypto and virtual currency. The guidance addressed concerns regarding the timing of income recognition, tax basis, and clarification on terms in cryptocurrency transactions. Cryptocurrency is a type of virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain. Virtual currency is a digital representation of value only available in electronic form. Cryptocurrency and income recognition A taxpayer who provides goods or services and receives an airdrop or payment in virtual currency has taxable income equal to the
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Monthly Archives May 2023
Should My Business Be Filing Income/Franchise Taxes in Other States?
By Ryan Working, CPA, MST Tax Director As a small to midsize business navigating the world of state income/franchise taxes can be difficult. Every state has different rules, tax rates, and requirements for filing. In this article, I will provide some basic concepts we use to help decide if an income/franchise tax return may be required in another state. Economic Presence: Historically, in order to be subject to taxes in a state you would need to have a physical presence in the state. In recent years due to the development of significant court cases and e-commerce, the vast majority
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