12 Sep 2023
Shark Alert! Fintech Businesses Can Take Many Forms—Look at the Tax Effects
Creating a financial technology (fintech) firm comes with a host of tax considerations and implications. Decisions about the business's structure, along with the location of both the business itself as well as its employees, can affect the entity's tax obligations. Learn about the considerations by referencing this article.
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- Business Entities. FASB voted unanimously to approve a new proposal whereby many U.S. companies will now have to provide additional information on their total cash taxes paid at the state and local, federal, and foreign levels, as well as more effectively break down the calculation of their effective tax rates for a given income year. These changes are slated to be finalized later this year, with reporting under the new standards beginning in 2025. FASB Conceptual Framework.
- Business Entities. IRS and Treasury propose regulations regarding information reporting, the determination of amount realized and basis, and backup withholding, for certain digital asset sales and exchanges. Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions, 88 Fed. Reg. 59576 (Aug. 29. 2023).
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