#irs-reporting
IRS reporting requirements for cryptocurrency and investments
FIRPTA requires US real estate buyers to withhold 15 percent of the gross sale price from foreign sellers and remit it on Form 8288 within 20 days of closing. This guide explains Section 1445, the $300,000 personal residence exemption, the 10 percent reduced rate, withholding certificates on Form 8288-B, and how buyers avoid personal liability with an Affidavit of Non-Foreign Status.
SECURE 2.0 cut the missed-RMD excise tax from 50% to 25%, and to just 10% if the shortfall is corrected within a two-year window. Form 5329 is how taxpayers claim the reduced rate or request a full reasonable-cause waiver, and the form also starts the IRS's three-year limitations clock.
Form 8027 requires large food and beverage establishments to reconcile gross receipts against employee-reported tips and allocate any shortfall below 8% to directly tipped employees on W-2 Box 8. This guide covers the 10-employee filing test, the three approved allocation methods, the tip-versus-service-charge distinction, and the reconciliation discipline that keeps Box 8 empty.
Form 8867 due diligence carries a $650 penalty per credit in 2026 — up to $2,600 per return — plus EFIN, PTIN, and OPR risk. A practical breakdown of the four IRC §6695-2 duties, the red flags IRS examiners hunt for, and the file structure that survives a 25-return due diligence visit.
A practical walkthrough of Form 941-X — when to use the adjustment process versus the claim process, the three-year (or two-year) statute of limitations, the stricter rules for federal income tax withholding, and what to put on Line 43 so the correction holds up under IRS review.
Form W-2c fixes errors on previously filed W-2s, but the penalty structure stacks behind the original February 2 due date — $60, $130, $340, or $680 per form depending on how late you file. A practical guide to W-2c and W-3c filing, the 10-return e-file threshold, SSA mismatch letters, and reconciling with Form 941-X.
How publicly traded U.S. corporations compute the 1% Section 4501 stock buyback excise tax in 2026, apply the netting rule, claim statutory exceptions, and file Form 7208 — including what the November 2025 final regulations changed and where Form 720-X refund opportunities apply.
The IRS Voluntary Classification Settlement Program lets eligible employers reclassify 1099 workers as W-2 employees for roughly 1.068% of last year's compensation, with no interest, no penalties, and no employment-tax audit of prior years on those workers.
How Applicable Large Employers file Forms 1094-C and 1095-C for the 2025 reporting year. Covers the March 2 and March 31, 2026 deadlines, the post-2024 furnishing-on-request rule, the 2026 penalty amounts ($3,340 and $5,010 per employee), the new 90-day Letter 226-J response window, and the Line 14/16 coding errors that most often trigger IRS audits.
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 allocates a business sale's purchase price across seven asset classes under IRC Section 1060. Mismatched buyer-seller filings risk $50,000 penalties.
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.
