#irs-reporting
IRS reporting requirements for cryptocurrency and investments
How non-willful US taxpayers use the IRS Streamlined Filing Compliance Procedures to catch up on FBAR, Form 8938, and three years of late returns—zero penalty under SFOP for taxpayers abroad, a one-time 5% miscellaneous offshore penalty under SDOP for domestic filers, plus what the non-willfulness certification must demonstrate.
U.S. digital asset brokers must issue Form 1099-DA for sales after December 31, 2024. This guide explains what each box reports, why 2025 forms cover only gross proceeds while 2026 forms add cost basis, and how to reconcile broker data with your own records on Form 8949.
Nonprofits with gross receipts of $50,000 or less file Form 990-N; those under $200,000 receipts and $500,000 assets file 990-EZ; everyone else files the full 990. This guide covers thresholds, deadlines, late penalties up to $120 per day, and the three-year automatic revocation rule that quietly strips exempt status.
Section 6501 gives the IRS three years from filing to assess tax — but the window stretches to six years for omissions over 25% of gross income or basis overstatements, and never closes at all for unfiled returns, fraud, or undisclosed foreign reporting. A practical guide to ASED, refund claim windows under Section 6511, the 10-year CSED, Form 872 consents, and what records to keep.
Foreign owners of US single-member LLCs must file Form 5472 by April 15, 2026, even with zero revenue. A capital contribution as small as $1 triggers the requirement, and a missed filing carries a $25,000 minimum penalty plus uncapped $25,000 continuation fees every 30 days after IRS notice.
How nonprofits trigger Unrelated Business Income Tax — a flat 21% federal levy, the three-part IRS test, traps in gift shops and advertising, statutory exclusions, and the post-2017 siloing rules under IRC §512(a)(6) that lock losses to each unrelated business.
The One Big Beautiful Bill Act repealed the $600 1099-K threshold in July 2025 and restored the original $20,000-and-200-transaction federal rule, easing paperwork for casual sellers and gig workers — but every dollar of business income remains taxable.
A Solo 401(k) crosses into mandatory Form 5500-EZ filing once combined plan assets exceed $250,000 on the last day of the plan year. Late filings cost $250 per day up to $150,000 annually, but Rev. Proc. 2015-32 caps catch-up filings at $1,500 per plan if no penalty notice has been issued.
Section 183 of the Internal Revenue Code denies loss deductions for activities not engaged in for profit. The IRS applies a nine-factor test and a three-of-five-years safe harbor (two of seven for horses) to distinguish a real business from a hobby — here is what each factor weighs and how to document profit motive before an audit.
How the IRS taxes crypto staking, mining, and DeFi income in 2026 — covering Revenue Ruling 2023-14, Form 1099-DA, wallet-by-wallet basis tracking, Schedule 1 line 8v, and which forms apply to each digital asset event.
Form 1042-S reports US-source FDAP income paid to foreign persons. US businesses act as withholding agents with personal liability — default 30% withholding, W-8 documentation rules, March 15 deadlines, and stiff per-form penalties. This guide covers W-8BEN versus W-8BEN-E, treaty rate reductions, the source-of-income rules, and common mistakes like sending Form 1099 to a foreign contractor.
Section 530 of the Revenue Act of 1978 eliminates back federal employment taxes on misclassified contractors when small businesses pass three tests — reporting consistency, substantive consistency, and reasonable basis. Revenue Procedure 2025-10 updated the rules in January 2025, the first major change in 40 years.
