Bitcoin’s Limited Supply Increases Its Value. Should You Invest in Cryptocurrency?
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, on the other hand, doesn’t have traditional backing and has a fixed supply. This may […]
Why Are Crypto Investors Still Buying?
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 Task Force (FATF) are all getting ready to tighten and restrict the cryptocurrency industry There […]
Lawmakers Propose Crackdown on Money Laundering “Enablers”
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 stones, art dealers, casinos and even public relations firms to investigate foreign clients seeking to […]
What To Do If The IRS Wants to Audit You
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 IRS. The proposed Biden Plan could increase that substantially because the IRS would be receiving […]
How Will Virtual Currency Be Taxed?
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 taxed” depends on who you ask. The IRS, The Financial Crimes Enforcement Network (FinCEN), the […]
How a Forensic Accountant Can Help Attorneys in Tax Fraud Cases
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 anxious to prosecute. The level of detail in the Fraud Handbook provides a roadmap for […]
Subprime Market Redux: Will Leverage Be Crypto’s Downfall?
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 getting rich in cryptocurrency will say the same when I tell you that the Bitcoin […]
IRS Puts Brokers On The Hot Seat for Crypto Tax Reporting
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 among the 193 guidance projects in the Plan is the“Brokers dealing with virtual assets” section. […]
OFAC Puts Virtual Currency Industry on Notice
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 currencies. With a broad stroke, OFAC defines the Virtual Currency Industry as technology companies, exchanges, […]
Questions FIs Should Ask External FATCA and CRS Service Providers
OECD Guide Offers Financial Institutions Advice on FATCA and CRS Hiring External Service Organizations to Handle Compliance While financial institutions (FIs) have final responsibility for compliance with the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS), many engage outside service providers. Advice on establishing agreements with the providers and on how to […]
How to Ensure FATCA and CRS Stakeholder Collaboration
OECD Report suggests compliance regime elements for FIs and Stakeholders Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) stakeholders are key to financial institutions’ (FIs) successful implementation, compliance, and maintenance efforts. These activities require funding, monitoring and approval. A pilot group of tax administrations of Canada, Singapore, the United Kingdom and the […]
How Tax Administrations Handle FATCA, CRS Non-Compliance
OECD Report Details Preventative and Corrective Measures for Financial Institutions’ FATCA and CRS Non-Compliance Tax administrations can use a combination of detective, preventative and corrective measures to assess and treat Foreign Account Tax Compliance (FATCA) and Common Reporting Standard (CRS) non-compliance, according to the “Guide on Promoting and Assessing Compliance by Financial Institutions” (the Guide). […]
