The IRS continues to be in the news cycle due to a continuous back and forth about how much power it will continue to have, and whether or not it will be weaponized even further against the average American. Even with the current delay of the onerous attempt to hit gig workers with a $600 threshold for reporting, they forge ahead, empowered by an $80 billion investment under the Inflation Reduction Act and some new code changes.
First it was reported that a new IRS alert went out to explain that there would be a new question to answer regarding “digital assets” and how to stay in compliance. Failure to answer accurately could spark and audit and attendant consequences.
“All taxpayers must answer the question regardless of whether they engaged in any transactions involving digital assets,” the agency cautioned.
It is a legal requirement to accurately report all income, including income from digital assets, on federal income tax returns. Failure to do so could result in non-compliance with tax laws and possible penalties. – Source: The Epoch Times
Now there is a new target for tax oversight: your friendly fantasy sports league. Clearly not intending to wage war against billionaire tax cheats as advertised, this latest code change is set to “cause a sizable increase in audits and taxes on Americans, especially those using transaction services like Venmo and PayPal for fantasy sports, according to tax experts,” reports Fox News.
One tax expert, Bruce Willey, even likened it to being put in the path of an oncoming truck.
“Most Americans are about to get run over, and they have no idea. If they’re not prepared for it, things could get pretty ugly for people,” he said.
The same previously mentioned mechanism for gig workers is finding its way into fantasy sports for those who use online apps as their payment systems. Additional scenarios and specifics were described by BakerHostetler Nationwide Tax Chair Jeff Paravano. As one should quickly see, it’s vague, extremely burdensome on all parties involved, and will likely do nothing except drive up the numbers of audits and extortion that will result.