IRS Collection Notices to Re-Start in 2024
On 12/19/23, the IRS announced the restart of IRS collection notices as well as a new penalty relief for approximately 4.7 million individuals, businesses and tax-exempt organizations that were not sent an automated IRS collection notice reminder during the Covid-19 pandemic. The IRS will be providing about $1 billion in penalty relief for five million […]
Adequate Books and Records Often Overlooked!
Internal Revenue Code Section 6001 requires Taxpayers to maintain adequate books and records and “that that every person liable for any tax imposed by the Code, or for the collection thereof, must keep such records, render such statements, make such returns, and comply with such rules and regulations”. Adequate Books and Records or Well-Organized Records […]
Taxes Owed But NOT Fully Paid? IRS charging 8%.
On 8/25/23, the IRS announced that Interest rates increase for the fourth quarter 2023 would increase to 8% per year for the calendar quarter beginning 10/1/23 for taxes owed but not fully paid by individual taxpayers (“underpayments”). The 8% interest rate is up from 3% in December 2021 – a 167% increase for taxes owed […]
Holiday Scams propelled by Artificial Intelligence
On 11/22/23, the U.S. Department of the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection office released an advisory providing tips to consumers to avoid becoming the victim of cyber or online holiday scams. The rise of Artificial Intelligence has allowed cybercriminals to automate malicious phishing attacks via holiday scams. The advisory states that: “As […]
The FinCEN Identifier
On September 29, 2023, FinCEN updated the FAQs regarding Beneficial Ownership Information (BOI) Reporting, including guidance on the FinCEN identifier. The FinCEN’s BOI FAQs work in tandem with the FinCEN’s BOI Small Business Guide that was released on 9/18/23 to assist the small business community in complying with BOI reporting rule that starts January 1, […]
“Substantial Control” under the CTA
FinCEN’s Small Entity Compliance Guide published 9/18/23 defines a beneficial owner as any individual who, directly or indirectly: exercises substantial control over a reporting company or owns or controls at least 25 percent of the ownership interests of a reporting company. This means that an individual person may be a beneficial owner through substantial control, […]
Export Control FinCEN Red Flags
On 11/6/23, the Department of Commerce’s Bureau of Industry and Security (BIS) and FinCEN issued a joint notice regarding export control evasion highlighting a new Suspicious Activity Report key term (“FIN-2023-GLOBALEXPORT”) for financial institutions to reference when reporting potential efforts by individuals or entities seeking to evade U.S. export controls NOT related to Russia’s invasion […]
Terrorist Financing FinCEN Red Flags
On 10/20/23, Terrorist Financing Red Flags were issued by FinCEN to assist financial institutions in identifying funding streams for the terrorist organization Hamas in response to Hamas’s terrorist attack on the people of Israel. FinCEN is urging financial institutions including virtual asset service providers (VASPs) to be vigilant in identifying suspicious activity relating to financing […]
The Tax Gap Increased to $688 Billion in Tax Year 2021
On 10/12/23 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 tax years […]
Accountants or Lawyers May Have Reporting Requirements under the CTA
On 9/18/23, FinCEN published the Small Entity Compliance Guide for beneficial ownership information (BOI) reporting under the Corporate Transparency Act (CTA) and simultaneously updated the FAQs regarding CTA compliance under FinCEN’s BOI FAQs. Professional Service Providers such as accountants or lawyers can potentially have reporting requirements under the CTA even if they are not beneficial […]
Fake Charities Scam Warning
On 10/23/23, the IRS issued a warning to taxpayers regarding Fake Charities scams and how unsuspecting donors may actually be contributing to fake charities and not be able to deduct donations on their tax returns despite the taxpayers response to the donation call to given the tragic crises and natural disasters happening around the globe […]
Artificial Intelligence to Assist IRS with Tax Cheats
On 9/20/23, the IRS announced that it plans to establish a special area to focus on large or complex pass-through entities to help with high-income compliance efforts. With the assistance of improved technology as well as Artificial Intelligence, the IRS compliance teams will be better able to detect tax cheating, identify emerging compliance threats and […]
