Frequently Asked Questions and Answers
When you are facing tax problems, questions come up quickly. This FAQ page is designed to give you clear, straightforward answers to the issues people ask most often when deciding whether to work with Attorney Sammy Kim. From understanding costs to knowing what the IRS can and cannot do, these answers will help you feel more informed and prepared before taking the next step.
Cryptocurrency and IRS Tax Rules
Do I have to pay taxes on cryptocurrency transactions?
Yes. The IRS treats cryptocurrency as property, meaning every sale, trade, or exchange can trigger a taxable event. Even using crypto to buy something counts as a sale. You may owe taxes on capital gains if your crypto increased in value since you acquired it.
What types of crypto transactions are taxable?
Taxable crypto events include selling crypto for cash, exchanging one coin for another, receiving crypto as payment for services, mining or staking rewards, and receiving airdrops. Simply transferring crypto between your own wallets is not taxable, but it’s still important to record these movements for tracking purposes.
What happens if I haven’t reported my crypto transactions?
Failing to report crypto transactions can result in penalties, audits, and IRS letters demanding clarification. If you’ve missed reporting in previous years, an attorney can help you file amended returns or voluntary disclosures to bring your record up to date before enforcement begins.
How long should I keep my cryptocurrency records?
The IRS recommends keeping all crypto transaction records for at least three to seven years after filing your return. This includes receipts, exchange statements, and documentation of gains and losses. These records protect you if the IRS questions your filings later.
How can Attorney Sammy Kim help with cryptocurrency tax issues?
Attorney Sammy Kim helps crypto investors manage IRS reporting, minimize penalties, and address crypto-related tax debt. She provides practical solutions for taxpayers who have fallen behind or are unsure how to report complex transactions, ensuring compliance while protecting their financial interests.
IRS Penalty Abatement
What is an IRS penalty abatement?
An IRS penalty abatement is a form of tax relief that allows qualifying taxpayers to have certain penalties removed or reduced. The IRS may approve an abatement if you can show reasonable cause, such as illness, reliance on incorrect advice, or an honest filing mistake. Attorney Sammy Kim helps clients prepare strong, evidence-backed requests that demonstrate why penalties should be reconsidered.
What kinds of penalties can the IRS abate?
Common penalties eligible for abatement include failure to file, failure to pay, and failure to deposit taxes. In some cases, accuracy-related penalties or Trust Fund Recovery Penalties may also be reduced or removed with proper legal advocacy.
How do I qualify for penalty abatement?
The IRS reviews factors such as your filing history, the reason for the penalty, and whether you’ve made a good-faith effort to comply. If it’s your first time facing penalties, you might qualify for First Time Abatement. For repeat penalties, your case must show reasonable cause supported by clear documentation. Sammy Kim frequently helps clients gather this evidence and communicate effectively with the IRS.
How long does it take for the IRS to decide on my penalty abatement request?
Processing times vary, but most cases take several months. During that period, your attorney can monitor IRS updates, provide clarifications if requested, and help you maintain compliance to improve your chances of success.
Can an attorney really make a difference with penalty abatement?
Yes. The IRS process can be complex, and small details often determine the outcome. Clients working with Attorney Sammy Kim often find that her deep understanding of IRS procedures and persuasive documentation leads to faster and more favorable results. In one recent case, the IRS fully abated a six-figure Trust Fund Recovery Penalty for a client who had struggled for years to resolve it.
Reporting Foreign Gifts and Form 3520
What is IRS Form 3520, and when do I need to file it?
IRS Form 3520 is used to report certain foreign gifts, inheritances, and transactions with foreign trusts. You must file it if you receive gifts or bequests from a foreign individual exceeding $100,000 in a calendar year, or if you receive money or property from a foreign corporation or partnership exceeding $19,570 for 2025.
What happens if I forget to report a foreign gift?
Failing to report a foreign gift can result in steep IRS penalties, often starting at 25% of the unreported amount. In serious cases, the IRS may assume the funds were income or linked to tax evasion. Attorney Sammy Kim frequently assists clients who missed filing deadlines and helps them correct filings before penalties escalate.
Does paying tax on the gift itself matter?
Most foreign gifts are not taxable income, but you still must report them to the IRS for transparency. The issue is not the tax itself—it’s the failure to report. Form 3520 ensures compliance with U.S. laws governing foreign financial transfers and prevents unnecessary scrutiny or enforcement actions later.
How do I fix a missed or late Form 3520?
If you missed the filing deadline, you can submit the form late with a reasonable cause statement explaining why. A tax attorney can help you prepare this letter, demonstrating that your oversight was not willful. Timely and thorough correction often prevents or reduces penalties.
Why do clients choose Attorney Sammy Kim for foreign gift issues?
Many clients dealing with foreign gifts or inheritances come to Attorney Kim after receiving IRS penalty notices or CP15 letters. Her experience with cross-border tax issues and her calm, clear approach help clients resolve matters efficiently. As one client shared, “I received a CP15 letter from the IRS, imposing a substantial penalty due to the late filing of Form 3520… Sammy and her team resolved it completely.”
What Our Clients Say
Ms. Young
Ms. Sammy Kim isn't just any attorney; she's an individual person who actually cares about making a difference in the lives of everyday people like me. She's direct, honest, and respectable. I am 82 years old and got quite sick during the pandemic, but my only son who has been living overseas could not come to visit me due to his back tax problems with the IRS. His passport could not be renewed because of the IRS tax issues.
Ms. Sammy Kim went over and beyond in arranging the necessary paperwork from overseas, continued to fight for my son before the IRS, and resolved his tax issues in a very efficient manner so my son could renew his passport to come to visit me in the States! I was so happy to hold my son in my arms after a decade.
Douglas
For me, consulting with a lawyer, especially a tax lawyer, was the most hated thing in life. Today's consultation with Attorney Sammy Kim was very clear. She felt the seriousness of listening to my problems. Sammy Kim is a very good lawyer who takes precious time and listens to my problems and listens to the situation of the unfair person.
For me, consulting with a lawyer, especially a tax lawyer, was the most hated thing in life. It's because it's really embarrassing and apologetic to make excuses for all sorts of reasons. Of course, today's consultation with Attorney Sammy Kim was very clear. Importantly, Attorney Sammy Kim felt that she was serious about listening to my problems.
Ms. Chung
Our small business failed hard during the COVID-19 era. I can’t begin to tell you how much it has meant to me and my husband to have someone of Sammy Kim’s caliber in our corner. She has been my guiding light during one of the darkest periods in my life and I will always be thankful that I found her. She is a bright and experienced lawyer who is also caring and supportive.
When the IRS throws a curveball at us by rejecting our offer in compromise, Sammy stepped up and argued for an uncollectible status for me and my husband. We were able to save my home and we feel we can breathe now from the IRS collection action. If you are losing sleep over tax issues, go see Sammy.
Contact me so we can talk about how to solve your tax problem now.
I have helped many people like you figure out the best option for solving their state tax problem. It is even possible that I could help you resolve your tax issue for less money than you owe. If you call me before your rights expire, you might also be able to file an appeal.
For my entire career as a tax lawyer, I have solved my clients’ state tax problems and stopped the state taxing authority from knocking on their doors.
Get back to enjoying your life and work, without any state tax problems to manage. Schedule a consultation with me now. I’m here to solve your state tax problems.
