Ellen H. Friestad CPA

Bitcoin aka digital currency. Digital currency is treated the same as a cash transaction for tax reporting purposes. Income earned that is paid by digital currency is reportable income. All income received is reportable, regardless if you received a tax form or the income is from an illegal activity.

2014 tax projection, now is the time to review current and projected 2014 income, expenses and ways to minimize income taxes due. Retirement contributions are always the best way to pay yourself first and create a deduction.

FBAR reports are due by June 30. Monies in foreign bank accounts plus any foreign online gambling accounts that totaled cumulative $10K or more in one calendar day in 2013 must be reported. Signature authority of an account with no ownership falls in the cumulative calculation.

IRS will never make first contact with a telephone call or email, first contact will be a letter. My client received a very convincing - urgent reply - telephone message about their outstanding balance. Always reply to a written notice - with the assistance of your tax professional. The client did not reply to the fraudulent telephone message.