A girl looking through a magnifier
A girl looking through a magnifier
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Last week I made a post about recent developments in the US government’s strategy to close the tax gap (estimated at $600 Billion in 2019). By tax gap, I mean the difference between what taxpayers owe the Government and what they actually pay. In my post, one of the strategies I discussed was a plan to increase investment in tax enforcement against corporations and high net-worth individuals. Yesterday, the Biden administration released a report revealing a tax compliance plan to strengthen the capacity of the IRS in tax enforcement.

Amongst other things the report recognises the possibility of changing patterns…

Crypto trading
Crypto trading
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A recent US District Court order has empowered the IRS to obtain more information about cryptocurrency users on Kraken. This order results from one in a series of actions taken by the IRS to enforce tax compliance and minimize tax evasion via cryptocurrency trading. Unlike regulated financial transactions, which fall under government regulatory frameworks, cryptocurrency transactions take place outside government monetary networks making it difficult to track and audit. However, governments around the world are working to close this loophole. In this post I explore recent developments aimed at closing the US tax gap. …

As crypto assets continue to see market gains, investors must brace up for increased government scrutiny and regulation of the industry. Governments must also prepare for the resultant market distortions.

Photo by Adam Nowakowski on Unsplash

2020 has been an exciting year for cryptocurrency investors. Bitcoin and some altcoins saw a meteoric rise in market cap and value as more institutional money flowed into crypto assets. For the first time in history, Bitcoin crossed the $24k mark. Investors’ impressive returns from the bull run have piqued the interest of crypto enthusiasts and novices alike. Government regulatory bodies are equally interested in the mainstream acceptance of cryptocurrencies.

At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?- An answer the IRS wants to know.

Cryptocurrency trading
Cryptocurrency trading
Photo by Austin Distel on Unsplash

The IRS will officially open the 2020 tax filing season on January 27, 2020. To make tax compliance easier, taxpayers can file their federal taxes for free if they earned below $69,000 in 2019. The various free filing options are available on this link. More than 20 states also offer a free filing option. Taxpayers who earned income from cryptocurrencies in 2019 should disclose it on a revised Schedule 1 (dealing with…

The French Finance Minister, Bruno Le Maire, has been quoted as saying the transtlantic relationship with the US would be affected if the US imposes trade sanctions against the EU over the French Digital Services Tax (“DST”).

Photo by Alex Kotliarskyi on Unsplash

Multinational corporations providing digital services would incur more DSTs going forward. Corporations like the GAFA (Google, Amazon, Facebook and Apple) are the most hit. DST is a levy on the gross revenue generated by a corporation from providing online services to customers in a specific country. Such online services include intermediation services like Amazon, Airbnb, or advertising services like Facebook and Google. In…

Bitcoin and US Dollar Bill
Bitcoin and US Dollar Bill
Photo by Dmitry Demidko on Unsplash

A new IRS guidance and response to frequently asked questions released on October 9, 2019, provides insight into some tax issues arising in cryptocurrency transactions.

Taxpayers have pondered over these issues for a while with many resorting to traditional tax principles applicable in taxing gain from property transactions. Take a look at these interesting aspects of the guidance.

A hard fork can give rise to taxable income

For crypto newbies, a hard fork occurs when cryptocurrency on the blockchain go through a protocol change giving rise to a new protocol. This new protocol may lead to the creation of a…


A new IRS guidance and response to frequently asked questions released on October 9, 2019, provides insight into some tax issues arising in cryptocurrency transactions.

An open door showing the way out
An open door showing the way out
Photo by Dima Pechurin on Unsplash

On 10 October 2019, the European Union will delete the UAE and Marshall Islands from its tax haven blacklist (‘the blacklist’). Here are some things you should understand about the blacklist and why countries do not like it.

The world is at your fingertips, thanks to technological advancement. But this comes at a price, the determination of which has left governments in an endless legislative war targeted at digital corporations.

Photo by Toa Heftiba on Unsplash

A century ago corporations operated close to target markets to gain easier access to their customers. That is changing today, thanks to the internet. Through the infrastructure of the web, a business need not set up shop in the markets they service. The platform business model enables this structure.

Platform businesses facilitate interactions between multiple participants. Andrei Hagiu, (an Associate Professor of Information Systems at Boston University) refers…

Modupe O. OTOIDE

Cross-Border tax and business consultant| Writer| Crypto enthusiast

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