American Eagle Business Services

04/10/2023

Understand digital asset reporting and tax requirements

All taxpayers filing 2022 tax year Forms 1040 and 1040-SR must check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer.

Examples of digital assets transactions include:

A sale of digital assets.
The receipt of digital assets as payment for goods or services provided.
The receipt or transfer of digital assets for free, without providing any consideration, that does not qualify as a bona fide gift.
The receipt of new digital assets as a result of mining and staking activities.
The receipt of new digital assets as a result of a hard fork.
An exchange of digital assets for property, goods or services.
An exchange or trade of digital assets for another digital asset(s).
Any other disposition of a financial interest in digital assets.
Reporting digital assets transactions

If the “yes” box is checked, taxpayers must report all income related to their digital asset transactions.

Taxpayers should use Form 8949, Sales and other Dispositions of Capital Assets, to figure their capital gain or loss and report it on Schedule D (Form 1040), Capital Gains and Losses.

If the transaction was a gift, they must file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

If individuals received any digital assets as compensation for services or disposed of any digital assets they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type. For example, they would report W-2 wages on Form 1040 or 1040-SR, line 1a, or inventory or services on Schedule C.

04/07/2023

Taxpayers can avoid processing delays and refund adjustments following these tips

Taxpayers can avoid common errors on their federal tax returns and get their refund sooner by ensuring their tax return is complete, accurate and error-free. They should follow the tips below for a smoother filing process.

Gather all tax documents
Taxpayers should gather all documents to support tax deductions and credits, like education credits or mortgage interest payments. Taxpayers should also have their Forms W-2, 1099 and prior-year tax return available; they may need them.

File electronically
Filing electronically through IRS Free File or other e-file service provider helps reduce math errors and identifies potential tax credits or deductions the taxpayer may be eligible to claim. Filing electronically and choosing direct deposit is a fast and secure way for taxpayers to receive a refund.

Report all taxable income
Most income is taxable. Under-reporting income may lead to penalties and interest. Income may include unemployment income, interest received and income from the gig economy, service industry and digital assets. Publication 525, Taxable and Nontaxable Income, has more information.

Request an extension, if needed
Taxpayers who need more time to file can easily request a six-month filing extension to Oct.16 to prevent late filing penalties. Use IRS Free File or visit irs.gov/extension to file for an extension by April 18. While an extension grants additional time to file, tax payments are still due on April 18 for most taxpayers.

Taxpayers can also request an extension by paying all or part of their estimated income tax due and indicating that the payment is for an extension. They can do this using Direct Pay, the Electronic Federal Tax Payment System, or a debit or credit card or digital wallet. This way taxpayers don't have to file a separate extension form and will receive a confirmation number for their records.

Mail paper returns to the right address
Taxpayers and tax professionals are encouraged to file electronically if possible. Those who need to file a paper tax return should confirm the correct address of where to file on IRS.gov or on Form 1040 instructions to avoid processing delays.

Keep a copy of the tax return
When ready to file, taxpayers should make a copy of their signed return and any schedules for their records. Copies help them prepare future tax returns and make math computations if they need to file an amended return. Generally, taxpayers must keep their records that support an item of income, deduction or credit shown on their tax return until the period of limitations for that tax return ends.

How to get an extension of time to file your tax return.

02/28/2023

Proud to be an Alignable Alliance Ambassador

02/27/2023

Taxpayers should hang up if tax season scammers come calling

The tax filing season is a popular time for scammers to call and try to dupe unsuspecting taxpayers. These thieves often make threatening or alarming calls posing as the IRS to try to steal taxpayer money or personal information.

However, it’s easy for people to recognize this scam by knowing how the IRS contacts taxpayers.

The IRS will never:

Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. Generally, the IRS will first mail a bill to any taxpayer who owes taxes. Threaten to immediately bring in local police or other law enforcement groups to have the taxpayer arrested for not paying.
Demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
Call unexpectedly about a tax refund.
Taxpayers who receive these phone calls should:

Record the number and then hang up the phone immediately.

Report the call by visiting the Hotline page of Treasury Inspector General for Tax Administration and using an IRS Impersonation Scam Reporting form or by calling 800-366-4484.

Forms to report fraud are available on the Hotline page of Treasury Inspector General for Tax Administration website. Taxpayers just click the appropriate option under “IRS Scams and Fraud” and follow the instructions.

Report the number to [email protected] and put "IRS Phone Scam" in the subject line.

02/27/2023

James Averill from American Eagle Business Services was selected as an Alignable Local Business Person of the Year for 2023 in Clarion.

02/24/2023

Clearly a fan of snow 😂🤣

02/24/2023

James Averill from American Eagle Business Services has been honored as a 2023 Alignable Community Supporter for Clarion.