What does the warning regulators gave banks regarding Crypto mean to you?
In January 2023, regulatory agencies; including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller issued a Joint Statement on Crypto-Asset Risks to Banking Organizations. The warning asks the banking system to do everything in its power to avoid having the risks related to […]
Crypto Value Decline Not Equal to Crypto Tax Deduction
Given that we are in full swing of tax season, many taxpayers are exploring the possibility of claiming a crypto tax deduction over their “devalued” crypto assets. Taxpayers ought to refer to the IRS Chief Counsel Advice Memorandum Number: 202302011 dated 1/13/2023 for clarity. The Memorandum responds to non-taxpayer specific advice regarding the applicability of […]
Beware of Digital Asset Scams
Digital asset scams can occur in different ways through several different avenues. Although the ways and the avenues differ, the end result is always the same: there is a scammer that is trying to appropriate the consumer’s funds via the human-machine interaction. The Federal Trade Commission (FTC) alerts consumers that: only scammers demand payment in […]
Digital Assets 2022 Form 1040 Question Checklist
Form 1040 2022 changes the crypto terminology from “virtual currency” to “digital assets”. The purpose of the change in terminology could be interpreted as a “head up” to taxpayers that the IRS is looking more closely as well as an intention to provide more clarity. That said, taxpayers ought to treat the expanded terminology or […]
Filing 2022 Taxes: Best to Get Ready Now
Taxpayers ought to start getting ready to file 2022 taxes. Going through statements, receipts, tax forms and other financial documents when it’s time to prepare to file 2022 taxes in 2023 can be a downer for those individuals who haven’t managed their records. A good record-keeping system year-round can make filing 2022 taxes easier by […]
Regulators Warn Banking Organizations Dealing with Crypto
On 1/3/23, Regulatory Agencies; including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller issued a Joint Statement on Crypto-Asset Risks to Banking Organizations. The Regulatory Agencies want to ensure that Banking Organizations understand that the risks related to the crypto-asset sector that cannot […]
Model 1 FFIs get FATCA Temporary Reporting Relief
On 12/30/22, the IRS issued Notice 2023-11 with the purpose of providing FATCA reporting relief to Model 1 FFIs who have been unable to obtain US TINs for their pre-existing accounts that are US reportable accounts. In turn, the Model 1 FFIs will provide information that the IRS can analyze to determine why these TINs […]
Digital Assets 2022 US Tax Form Instructions
In an early release (10/17/18) of Draft IRS Tax Forms 1040 and 1040-SR Instructions, the IRS has provided U.S. Taxpayers digital assets holders a bit more clarity about how to report digital assets on their 1040 income tax forms. On 9/1/22, the IRS posted Form 1040 2022 Draft. Form 1040 is the U.S. Individual Income […]
When are Casinos Financial Institutions?
According to the IRS and FinCEN, Casinos licensed to do business as casinos and which have gross annual gaming revenues in excess of $1,000,000 are Financial Institutions subject to the requirements of the Bank Secrecy Act, which is known as Title 31. As a result, Casinos are subject to the Bank Secrecy Act and are […]
IRS-CI Expands Partnerships with Foreign Counterparts
On 11/3/22, IRS-CI (IRS Criminal Investigation) released it FY2022 Annual Report highlighting more than 2,550 investigations, 90% conviction rate; enforcement actions focused on tax fraud, money laundering, cybercrimes, and important partnerships. During its Fiscal Year 2022, which began Oct. 1, 2021, and ended Sept. 30, 2022, IRS-CI identified over $31 billion from tax and financial […]
Sponsoring Entities under IRS FATCA scrutiny
On 10/11/22, the IRS issued Notice Number 2022-05: FATCA Registrations: Sponsoring Entities with no Registered Sponsored Entities. The IRS has identified Sponsoring Entities that do not appear to have Sponsored Entities registered in the FATCA Registration System. A Sponsored Entity is a Sponsored FFI or a Sponsored Direct Reporting NFFE. Sponsoring Entity A Sponsoring Entity […]
Crypto-Asset Activities Not Paired with Regulation
The U.S. Department of the Treasury through its Financial Stability Oversight Council issued a press release presenting its Report on Digital Assets Financial Stability Risk and Regulation on 10/3/22 highlighting how crypto-asset activities could pose risks to the stability of the U.S. financial system if their “interconnections with the traditional financial system or their overall […]
