Are Crowdfunding Monies Taxable?
On August 2024, the IRS, for the third time in two years, reminded taxpayers that crowdfunding monies may be taxable. Due to the popularity of crowdfunding monies raised online, the IRS issued News regarding how money raised through crowdfunding may be taxable via its First Notice as a Fact Sheet on March 2022 (FS-2022-20) and […]
Investment Adviser Sector and FinCEN
FinCEN seeks to safeguard the investment adviser sector from illicit finance as evidenced by the issuance of the Final Investment Adviser Rule on 8/28/24 with a compliance date of 1/1/26. The investment adviser sector final rule seeks to “address the current uneven application of AML/CFT requirements across the investment adviser sector, which creates illicit finance […]
Residential Real Estate and FinCEN
FinCEN seeks to safeguard residential real estate as evidenced by the issuance of the Final Residential Real Estate Rule issued 8/28/24 and taking effect on 12/1/25. The Final Rule requires “certain” industry professionals to report information (via the “Real Estate Report”) on non- financed transfers (cash sales) to FinCEN given that residential real estate has […]
FinCEN Final New Rules Close Loopholes in U.S. Financial System
On August 28, 2024, FinCEN Final New Rules were published that address vulnerabilities in the U.S. financial system and are part of an on going effort to combat illicit finance and protect U.S. national security, as well as closing loopholes in sectors that facilitate corruption, fraud and narcotrafficking. FinCEN Final New Rules are two rules […]
IRS Report Card on Inflation Reduction Act
On 8/23/24, the IRS Report Card was released via Notice IR-2024-223 regarding the progress and improvements made possible by the Inflation Reduction Act (“IRA”). The IRS Report Card states that the IRA has made it possible for the “IRS to uncover and address tax evasion shrouded in complexity that requires subject matter expertise and data […]
IRS Use of AI Can Close Tax GAP
On 10/12/23, the IRS announced new tax gap projections for tax years 2020 and 2021 showing the projected gross tax gap increased to $688 billion in tax year 2021, a rise of more than $192 billion from the prior estimates for tax years 2014-2016 and a rise of $138 billion from the revised projections for […]
ERC Voluntary Disclosure Program Re-Opens
On 7/15/24, the IRS announced via Notice IR-2024-212 the re-opening of the ERC (Employee Retention Credit) Voluntary Disclosure Program which will end on 11/22/24. The first ERC Voluntary Disclosure Program ended in March 2024 with more than 2,600 applications from ERC recipients that disclosed $1.09 billion worth of credits. In order to fix incorrect ERC […]
Taxpayers Abroad are Underserved and Challenged
The National Taxpayer Advocate 2023 Annual Report to Congress highlights how Taxpayers abroad are underserved and continue to face challenges in meeting their U.S. tax obligations. As a result, the National Taxpayer Advocate has prioritized compliance challenges for taxpayers abroad in its FY 2025 Objectives Report to Congress. The Taxpayer Advocate Service (TAS) is an […]
FinCEN BOI FAQs 7/24/24
On 7/24/24, FinCEN updated its BOI FAQs page to include one new question and one new update. FinCEN states that it will continue to provide guidance on how to submit beneficial ownership information; including updating the FinCEN BOI FAQs 7/24/24. FinCEN continues to provide further directive and information via the FinCEN BOI FAQs web page. […]
FinCEN Notice to Customers
“FinCEN encourages financial institutions to share this reference guide with customers that may be required to report beneficial ownership information” is the message that FinCEN released on 7/26/24. The FinCEN Notice to Customers is intended to facilitate communication between Financial Institutions and customers regarding Beneficial Ownership Information (BOI) requirements. The FinCEN Notice to Customers states […]
Email Scams Continue to Trick Taxpayers
On 7/16/24, the IRS warned taxpayers and tax professionals how email scams continue to aim to trick taxpayers by stealing sensitive tax and financial information. This information consists of passwords, bank account numbers, credit card numbers, or Social Security numbers. Email scams are known as “phishing” and they are continuously evolving coming in different variants […]
Digital Assets Broker Reporting
On 6/28/24, the U.S. Treasury and the IRS issued final regulations with an effective date of 9/9/24 requiring custodial brokers to report sales and exchanges of digital assets beginning in calendar year 2025. Meaning, information reporting and the determination of amount realized and basis for digital asset sales and exchanges. Digital Assets Broker Reporting means […]
