Passport Revocation or Denial continues
On 1/1/24, the IRS updated its Passport Revocation or Denial Page in cases of certain unpaid taxes. Section 7345 of the Internal Revenue Code requires the U.S. Department of the Treasury to notify the U.S. Department of State if a certification is made that an individual has a “seriously delinquent tax debt.” The Internal Revenue […]
All Sources of Income Must be Reported on Tax Return
On 3/6/24, the IRS released a reminder to all taxpayers that all sources of income must be reported on their tax return. The IRS is paying close attention to all sources of income derived from digital asset transactions, the gig economy and service industry as well as income from foreign sources. IRS is keen on […]
Corporate Jets and the IRS
On 2/21/24, the IRS announced that it will begin auditing corporate jet usage as part of its larger effort to ensure high-income groups “don’t fly under the radar” on tax responsibilities. IRS Commissioner Danny Werfel stated that: “Personal use of corporate jets and other aircraft by executives and others have tax implications, and it’s a […]
Fraud is the Number One Crime in Money Laundering
On February 2024, the U.S. Treasury released the 2024 National Money Laundering Risk Assessment (NMLRA) which examines the current money laundering environment and identifies the ways in which criminals and other actors seek to launder funds. The Assessment aims to: inform the understanding of illicit finance risk by governmental and private sector actors, strengthen risk […]
High-Income Taxpayers Beware that IRS Actions Escalate if Tax Returns Aren’t Filed
On 2/29/24, the IRS announced a new effort focused on high-income taxpayers who have failed to file federal income tax returns in more than 125,000 instances since 2017. The mailings include more than 25,000 to those with more than $1 million in income, and over 100,000 to people with incomes between $400,000 and $1 million […]
FATF Key Actions February 2024
On 2/23/24, the Financial Action Task Force (FATF), an independent inter-governmental entity that develops policies for protection of our global financial system from money laundering, terrorist financing and financing of weapons of mass destruction and considered to be the global money laundering and terrorist financing “watchdog”, concluded its fifth Plenary under the Singaporean presidency. The […]
BOI Access & Safeguards
On 2/20/23, FinCEN published the Small Entity Compliance Guide for Beneficial Ownership Information Access and Safeguards Requirements. The (six-pages and four sections) BOI Access & Safeguards Guide provides an overview of the Beneficial Ownership Information Access and Safeguards Rule (Access Rule) requirements for small entities that obtain BOI from FinCEN and only pertains to authorized […]
AML/CFT coming to Investment Advisers
On 2/15/24, FinCEN published a Notice of Proposed Rulemaking (NPRM) that would require certain investment advisers to apply AML/CFT requirements pursuant to the Bank Secrecy Act, including implementing risk-based AML/CFT programs, reporting suspicious activity to FinCEN, and fulfilling recordkeeping requirements. FinCEN’s view is that investment advisers are at risk of abuse by money launderers, corrupt […]
Real Estate Report from FinCEN
On February 07, 2024, FinCEN issued a Notice of Proposed Rulemaking (NPRM) to combat and deter money laundering in the U.S. residential real estate sector by increasing transparency. FinCEN is seeking to require certain professionals involved in the closing or settlement of residential real estate transfers to report information to FinCEN about certain non-financed sales […]
Form 1099-K 2023 IRS Clarification
On 2/6/24, the IRS released new and updated FAQs regarding Form 1099-K 2023 given that on November 21, 2023 (via Notice 2023-74) the IRS announced that calendar year 2023 would also be a transition year for third party settlement organizations (TPSOs). This means that the IRS again delayed the effective date of the $600 threshold […]
Is Your 2023 Tax Preparer Asking You the Right Questions?
Tax season is here and on 2/1/24, the IRS reminded Taxpayers to choose a 2023 Tax Preparer carefully when preparing their 2023 Taxes. Taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it. A tax preparer can have different levels of skills, education and expertise and […]
BOI Compliance/Enforcement for Reporting Companies
Reporting companies are required to report information to FinCEN about the individuals who ultimately own or control them. FinCEN began accepting reports on January 1, 2024. Reporting Companies have a significant obligation to understand and comply with the BOI reporting rule and file the Beneficial Ownership Information Report(s) (BOIR). There are serious fines and penalties […]
