The Anti-Money Laundering Act of 2020 may be a Game-Changer for Compliance Professionals
On December 2, 2020, the ‘‘William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021’’ was passed by the U.S. House of Representatives. The Act includes DIVISION F (ANTI-MONEY LAUNDERING). This Division is cited as the ‘‘Anti-Money Laundering Act of 2020’’. Of significance is the legislative requirement that Corporations and Limited Liability […]
IRS Agents Use Methods of Proof
The IRS has tools inside of its Internal Revenue Manual (“IRM”) available to its agents for determining a Taxpayer’s taxable income as well as documenting its adjustments and corrections through what it calls “Methods of Proof”. The IRM describes seven Methods of Proof for use by its agents who are pursuing its civil or criminal […]
A Forensic Accountant digs beneath the surface and finds what is missing
The decision to hire a Forensic Accountant can be a gamble. Not all possess critical characteristics such as being able to see beyond what is immediately in front of them utilizing a panoramic approach. Traditionally, a CPA looks at historical data, and focuses on the” fairness” of financial statement presentations and the preparation of tax […]
Working together, Attorneys and Forensic Accountants Can Bring About Optimal Solutions
There is a value added for a client when an Attorney is working in tandem with a forensic accountant. Litigation often involves overlapping complex accounting and legal issues. Working together, Attorneys and Forensic Accountants can bring about optimal solutions. Clients that work with one and exclude the other are putting themselves at a greater risk. […]
Compliance Function Shall Not be “Underfunded”
Compliance Professionals continue protecting their Financial Institutions during these unprecedented times. They have become a source of regulatory information for Financial Institutions facing challenges that are changing from day to day. As the Pandemic continues, Compliance Departments and Compliance Officers working remotely bear an additional responsibility for assuring proactive risk identification, assessment, and mitigation. Regulators […]
After Ten Years, FATCA is NOT GOING AWAY!
FATCA was signed into law in March 2010 with the objective of combating international income tax reporting non-compliance by US citizens and U.S. taxpaying residents (US Taxpayers). It requires Foreign Financial Institutions (FFIs) to annually report the reportable balances and income in the accounts held by their US customers to the IRS. It requires US […]
“Reasonable Cause” When Dealing with the IRS
On November 5, 2020, the IRS removed the Delinquent Information Submission Procedure Program from its Offshore Compliance Options Menu. Before the removal of this program, a US Taxpayer could file a “delinquent” international information tax return with what is known as a Reasonable Cause Statement from which the IRS could waive non-compliance penalties if a […]
What can I do if I made a willful mistake and willfully failed to comply with my tax obligations?
Voluntary compliance is the foundation of the US tax system. Although the majority of US Taxpayers voluntarily comply with their obligations, some fail to do so (willful mistake). Submitting a voluntary disclosure via the Voluntary Disclosure Practice may resolve a Taxpayer’s non-compliance and limit exposure to criminal prosecution The Voluntary Disclosure Practice (VDP) is managed […]
IRS Commissioner Hylton sends an important message to high income non-filers
On December 3, 2020, the IRS published “How the IRS prioritizes compliance work on high income non-filers through national and international efforts” in the Closer Look. It addresses how the IRS is in pursuit of high-income non-filers as an important service and gives its respect to many Americans who pay their taxes. The IRS’s sentiment […]
A Forensic Accountant Bringing the Investigative Component to a Matter at Hand, Can Give an Attorney an Edge
Presenting results in an easily understood manner is something one must expect a forensic accountant to bring to the plate. The skill set of a forensic accountant can provide a significant advantage by taking complex financial data and putting it in an understandable format for an attorney, judge, and jury. When we speak of forensic […]
Is your Financial Institution Maintaining Continuous Compliance with FATCA?
Participation in FATCA is not an option, it is here to stay, and it is part of a global initiative. FATCA is complicated, and for the bankers, it has implied learning new terminology and understanding thousands of pages of a regulation that is written for a person that specializes in the tax laws of the […]
The BSA CASTS A WIDER NET
On September 15, 2020, FinCEN issued a Final Rule stating that Banks lacking a Federal Functional Regulator will be required to establish and implement AML programs including policies and procedures, a dedicated compliance officer, employee training, an independent audit function and continue to be subject to a Customer Identification Program (CIP) along with Beneficial Ownership […]
