In 2009, Bitcoin became the first major peer-to-peer currency to be traded digitally, rather than in banks. Since that time, the digital currency, as it's called by many, has generated a lot of attention. Given that people use Bitcoin as if it's the U.S. dollar, a number of tax-related issues have circulated.
High-tech tools can trigger tax audits -- even without wrongdoing
Every year at this time, millions of Americans are preparing to submit a tax return to the Internal Revenue Service with the hope that everything will be processed as expected. The unfortunate reality is that well-intentioned people can receive a notice of audit from the IRS, rather than the refund check they were expecting.
Internal Revenue Service may use liens to make up tax debt
Gathering all of the necessary documentation to file income taxes every year can seem like a daunting task. Coming to the realization that you owe more to the Internal Revenue Service than originally thought makes the situation even more onerous, especially if the tax burden is unaffordable. In this situation, a person may have to make very difficult decisions.
What if you cannot pay back a tax debt in full?
Many Minnesota residents make painstaking efforts to plan personal budgets and finances. However, no amount of preparation can account for unexpected, drastic changes in income or expenses. Knowing this, a person can fall behind on financial obligations. Along the way, a person could also fail to meet his or her tax burden.
