Foodman CPAs and Advisors

What is new in the DOJ Updated Corporate Compliance Program Evaluation Guidance?

compliance program

On June 1, 2020, the Department of Justice (DOJ) Criminal Division published an update to the U.S. Department of Justice Criminal Division Evaluation of Corporate Compliance Programs. The Corporate Compliance Evaluation Guideline assists  prosecutors with making decisions regarding a corporation’s compliance program effectiveness at the time of an offense, and the  effectiveness of its compliance […]

Forensic Accountants Should Be an Integral Component of PPP Loan Audits

forensic accountant

The published goal of the Paycheck Protection Program (PPP) loan program is to assist small businesses to remain open during the Covid-19 crisis and to reduce the rate of unemployment.  The loans   provide a direct incentive for small businesses to keep their employees on the payroll.  The SBA under certain circumstances will forgive all or […]

Financial Institutions Can No Longer Afford to Underfund Compliance Hiring and Training

compliance training

The Covid-19 Pandemic and the accompanying reduction in economic activity has been a rationale for Financial Institutions (FI) to re-analyze their budgets for compliance training and education.  FIs, as well as  businesses in other industries, are seeking to preserve liquidity through reducing expenditures.  Not considering the risk-associated dangers resulting from compliance cost-cutting could be serious […]

IRS has a Commitment to Service US Taxpayers and Enforce Collections Compliance

taxpayer

According to the Internal Revenue Code, Taxpayers have three obligations: (1) to file timely returns; (2) to file accurate returns; and (3) to pay the required tax voluntarily and timely.  Voluntary compliance, in which Taxpayers determine the correct amount of their tax and complete appropriate returns, rather than the Government determining their tax for them […]

This is the Time to Update Important Documents

lightbulb image

By unexpectedly raising apprehensions regarding mortality and quality of life issues that many Individuals were not addressing prior to the pandemic, the Covid-19 pandemic is provoking  individuals to think about their personal financial planning. Individuals may be considering estate planning choices as well as trying to answer questions concerning who will oversee their medical care […]

So much of Virtual Currency is still subject to Interpretation

Virtual Currency Industry

On February 12,2020, the U.S. Government Accountability Office (GAO) published a Report  on Virtual Currencies which discusses whether Taxpayers  who use Virtual Currency (VC) are fully meeting their tax obligations.   The purpose of the GAO report is to address IRS’ efforts related to VC tax compliance, guidance, and information reporting (which involves third parties, such […]

Were you Engaged in Virtual Currency transactions in 2019?

Virtual Currency Industry

In 2019, taxpayers who engaged in virtual currency transactions will need to file Schedule 1, Additional Income and Adjustments to Income.  Schedule 1 of the 2019 1040 Form presents the question to Taxpayers: “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?  This […]

PPP Loan Borrowers will need Assistance when Applying for Forgiveness of their PPP Loans

PPP loans

On 4/15/20, the SBA and the U.S. Department of the Treasury released an application form for Paycheck Protection Program (PPP) loan forgiveness along with instructions for completing the form. To apply for forgiveness of a Paycheck Protection Program (PPP) loan, the Borrower must complete the application and submit it to its Lender (or the Lender […]

OFAC is not part of the BSA, But Convergence is Occurring

banks secrecy act

On April 15, 2020, the members of the Federal Financial Institutions Examination Council (FFIEC)  released updated sections and related examination procedures to the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual (Manual)  which provide instructions to examiners when assessing the adequacy of a bank’s BSA/AML compliance program. The Manual was last updated in 2014.  In the […]

What happens if an FFI loses its GIIN?

fatca

In order to be FATCA registered and exempt from withholding by U.S. withholding agents, a Foreign Financial Institution (FFI) must have a Global Intermediary Identification Number (GIIN).   A Foreign Financial Institution withoutaGIIN is treated as unregistered in FATCA and faces a 30% withholding tax on certain U.S. source payments of Fixed Determinable Annual Payments (FDAP).  […]