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 […]
Art Donation Scheme Warning from IRS
On 10/5/23, the IRS issued a warning and offered tips to all taxpayers, including, High-Net-Worth taxpayers (high income filers) to be on the lookout for promotions that promise art donation deductions that are a tax scheme. Although there are legitimate ways that taxpayers can claim donations of art, there are unscrupulous promoters may use direct […]
OFAC Suspends Certain Venezuela Sanctions
On 10/18/23, OFAC provided issued sanctions relief to Venezuela entities in the following sectors: oil and gas, state-owned gold mining company and Venezuelan sovereign bonds and PdVSA (Petróleos de Venezuela, S.A.) debt and equity. OFAC cautioned that it is prepared to revoke these authorizations, if appropriate, to support US foreign policy and national security priorities. […]
FinCEN BOI Small Business Guide
On September 18, 2023, the FinCEN BOI Small Business Guide was released to assist the small business community in complying with the beneficial ownership information (BOI) reporting rule that starts January 1, 2024. The purpose of the FinCEN 56-page BOI Guide is to help small businesses understand the description of each of the BOI reporting […]
Understanding Trusts so You are not mislead by the word “Trust”
Trusts are vehicles that can assist in the preservation of wealth and property for future generations, protect assets, or carry out a charitable purpose. A trust is an entity created and governed under the state law in which it was formed. A trust involves the creation of a fiduciary relationship between a grantor, a trustee, […]
New IRS Compliance Efforts
On 9/823, the IRS announced new compliance efforts that will focus on increasing scrutiny on high-income taxpayers, partnerships, corporations and promoters abusing tax rules on the books by using Artificial Intelligence and improved technology to identify sophisticated schemes to avoid taxes. The new IRS compliance efforts are geared towards having the IRS compliance teams better […]
FinCEN’s Pig Butchering Alert
On 9/8/23, FinCEN issued an alert on a prevalent Virtual Currency Investment Scam commonly known as “Pig Butchering”. FinCEN’s Pig Butchering alert addresses “Pig butchering” scams which resemble the practice of fattening a hog before slaughter. “Victims invest in supposedly legitimate virtual currency investment opportunities before they are conned out of their money. Scammers refer […]
Compliance Note from BIS, DOJ & OFAC
On 07/26/2023, the U.S. Department of Justice (DOJ), the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), issued a Tri-Seal Compliance Note: Voluntary Self-Disclosure of Potential Violations. The Compliance Note focuses on the voluntary self-disclosure policies that apply to U.S. […]
FedNow is live!
On 7/20/ 23, the Board of Governors of the Federal Reserve system announced the launch of the FedNow Service. FedNow is a new instant payment infrastructure developed by the Federal Reserve that is available to depository institutions in the United States and enables individuals and businesses to send instant payments through their depository institution accounts. […]
