#irs-reporting
Irs Reporting
IRS reporting requirements for cryptocurrency and investments
First-Time Penalty Abatement Goes Automatic in 2026: Clean-Compliance IRS Relief for Failure-to-File, Pay, and Deposit Penalties
Starting filing season 2026, the IRS will apply First-Time Penalty Abatement automatically for taxpayers with a clean three-year compliance record — wiping Failure-to-File, Failure-to-Pay, and Failure-to-Deposit penalties without a phone call or Form 843. Here is how the rollout works, who qualifies, and when reasonable cause is the smarter move.
Form 8594 and Section 1060: Allocating Purchase Price Across Asset Classes I–VII in a Business Sale
Buyers and sellers in an asset acquisition must each file Form 8594 under Section 1060, allocating consideration across seven asset classes using the residual method. Mismatched filings can trigger $50,000 penalties and audit cascades; a single dollar moved between Class IV inventory and Class VII goodwill can swing after-tax cash by 17 cents.
Section 6694 Tax Preparer Penalties: How Unreasonable Positions, Willful Conduct, and Section 6695 Due Diligence Failures Cost CPAs and EAs Real Money
Section 6694 imposes preparer penalties of $1,000 or 50% of fees for unreasonable positions, escalating to $5,000 or 75% for willful or reckless conduct. Section 6695(g) adds roughly $650 per EITC, CTC, AOTC, or head-of-household failure on every return. Here is how CPAs and EAs document, disclose, and defend their way out of them.
Streamlined Filing Compliance Procedures: How Non-Willful US Taxpayers Catch Up on FBAR, Form 8938, and Three Years of Late Returns Without Crushing Penalties
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.
Form 1099-DA Arrives in 2026: A Crypto Investor's Guide to the IRS's First Digital Asset Reporting Form
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.
Form 990, 990-EZ, and 990-N: How Nonprofits Choose the Right Annual Return and Avoid Automatic Revocation
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.
IRS Statute of Limitations Under Section 6501: How Long the IRS Has to Audit, Assess, or Refund
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.
Form 5472 for Foreign-Owned US LLCs: The $25,000 Penalty Trap That Catches Single-Member Disregarded Entities Off Guard
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.
Unrelated Business Income Tax (UBIT) and Form 990-T: When Your Nonprofit's Gift Shop, Ads, or Side Ventures Trigger a 21% Tax Bill
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 1099-K Whiplash Ends: Why the $20,000 and 200-Transaction Threshold Is Back for 2026
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.
Form 5500-EZ Solo 401(k) Filing Threshold: When Self-Employed Plans Cross the $250,000 Asset Trigger
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 Hobby Loss Rule: How the IRS Nine-Factor Test Decides If Your Side Activity Is a Business
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.