How the IRS Uses Social Media to Find Crypto Tax Cheats

Does your Twitter, Reddit, Facebook, Instagram or other social media feed feature photos of your new sports car, boat, fabulous vacation or the beach house that you bought with your crypto gains? Do you also report a low income on

Crypto Regulation

The Tangled Web of Proposed Crypto Regulation

December 2021

Don’t Expect Coherent Rules to Align Any Time Soon Multiple enforcement agencies within the US government agree that the $2.5 trillion crypto industry needs regulation. And heads of the largest crypto companies have told Congress that they agree. But therein

  • Foodman Website and JD Supra
Ransomware Attack

OFAC Warns FFIs And Crypto Sector On Ransomware Attacks

December 2021

Prevention is Key, Sanctions Are Possible for Ransomware Attack During the first half of 2021, 68 different ransomware attacks extracted approximately $600 million from victims across the United States. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) says that the

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Bitcoin’s Limited Supply Increases Its Value. Should You Invest in Cryptocurrency?

December 2021

Macroeconomic concepts tell us that when supply of a valuable commodity is limited, demand for it will rise, and so will its price. Fiat currencies are backed by governments and central banks and more can be printed at will. Bitcoin,

  • Foodman Website and JD Supra
crypto

Why Are Crypto Investors Still Buying?

December 2021

Danger signs abound Despite its volatile and speculative nature, a single bitcoin is trading at around $61,134 (11/5/21.) Demand is growing exponentially, despite multiple danger signs. For example: The SEC, the U.S. Treasury, the DOJ, OFAC and the Financial Action

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Lawmakers

Lawmakers Propose Crackdown on Money Laundering “Enablers”

December 2021

Should lawmakers have to follow the same rules as financial institutions? For the first time, a bipartisan group of U.S. lawmakers has proposed legislation that would require trust companies, lawyers, accountants, notaries, real estate agents, dealers in precious metals and

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IRS Audit

What To Do If The IRS Wants to Audit You

November 2021

Rule #1: Don’t Panic! Under the Biden Administration’s proposed American Families Tax Plan, there is the possibility of more tax audits, but only for a certain groups of high income people. That’s because more information would be reported to the

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Virtual Currency

How Will Virtual Currency Be Taxed?

November 2021

Non-compliance with virtual currency (crypto) tax rules can cost taxpayers dearly It Depends Who You Ask! Despite the confusing interpretations by US regulators, non-compliance with crypto tax rules can cost taxpayers dearly. Unfortunately, the answer to “how is virtual currency

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How a Forensic Accountant Can Help Attorneys in Tax Fraud Cases

November 2021

The IRS recently added new categories of tax fraud In its recently updated Fraud Handbook, the IRS adds new categories of tax fraud, including concealing domestic or foreign bank accounts and digital assets such as virtual currency. And they are

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cryptocurrency

Subprime Market Redux: Will Leverage Be Crypto’s Downfall?

November 2021

I Predicted the Subprime Lending Bubble’s Collapse. The Signs Are The Same For Cryptocurrency. When I predicted the bursting of the housing market’s subprime lending bubble in 2006, a lot of people called me crazy. And some of the people

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crypto asset

IRS Puts Brokers On The Hot Seat for Crypto Tax Reporting

November 2021

Definition of a broker is debated The Biden Administration’s 2021–2022 Priority Guidance Plan (the Plan) supports a push from the IRS and the US Treasury to more closely scrutinize the virtual currency industry.  Missing from the Plan? Specifics. Of note

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Virtual Currency Industry

OFAC Puts Virtual Currency Industry on Notice

November 2021

New Guide Includes Reporting Requirements and Potential Penalties In a new Sanctions Compliance Guide, The Office of Foreign Assets Control (OFAC) of the U.S. Treasury reiterates that obligations apply equally to transactions involving virtual currencies and those involving traditional fiat

  • Foodman website and JD Supra