IRS Security Summit Offers Tips on How to Prevent Identity Theft and Tax Fraud
Two-factor Identification is one of the cheapest and easiest ways to prevent tax fraud. As Certified Fraud Examiners (CFEs) we suggest many other safeguards to our clients. As Certified Fraud Examiners (CFE) my firm has long helped clients untangle webs of taxpayer, identity and data theft. Now, with data theft rising steeply, the IRS Security […]
FinCEN to host second ‘exchange’ on preventing ransomware
The United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN) will hold a second FinCEN Exchange in August to discuss ways to combat increasingly sophisticated cyber and ransomware attacks. The FinCEN Exchange is a voluntary public and private partnership that convenes stakeholders, law enforcement and financial institutions (FIs.) As part of their Compliance functions, financial […]
What is Backup Withholding Tax and Who Has to Pay It?
When it comes to taxes, mistakes can cost you more than money. That’s especially true with Federal backup withholding taxes. In simplest terms, 24 percent backup withholding is demanded of both payers and payees who either mistakenly or intentionally supply incorrect or incomplete information about 1099 or W2-G income. The IRS requires both businesses and […]
The IRS Is Cracking Down On Cryptocurrency Tax Reporting
If you’ve engaged in cryptocurrency or other virtual currency transactions worth $20,000 in any one year between 2016 and 2020, the IRS wants to hear from you. The IRS believes thousands of taxpayers are not telling the government about their income and investment gains from cryptocurrency transactions via Cryptocurrency tax reporting. In a soft warning […]
2021 “Green Book” Introduces Comprehensive Financial Account Reporting
The “Green Book” is a US Treasury Department document that presents detailed explanations of an Administration’s revenue proposals in support of a President’s annual budget request. On May 28, 2021, the Biden administration released its “Green Book” titled “General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals”. The Green Book was last issued in […]
Upcoming Virtual Currency FBAR and FATCA Reporting Enforcement
Under current FinCEN regulations, a foreign account holding virtual currency is not reportable on the FBAR. However, FinCEN in its FinCEN Notice 2020-2, proposes amending reports of foreign financial accounts (FBAR) regulations to include virtual currency accounts as a type of reportable account. FATCA requires foreign financial accounts reporting as well. For individuals, FATCA applies […]
THE TAX GAP TO RISE TO APPROXIMATELY $7 TRILLION
The US Treasury reports that it is expecting the tax gap to rise to approximately $7 trillion over the course of the next decade if left unaddressed. In May 2021, the US Department of the Treasury issued the “THE AMERICAN FAMILIES PLAN TAX COMPLIANCE AGENDA” describing the Biden Administration (Administration) initiatives for restoring IRS enforcement […]
Forensic Audits are Trending
The demand for forensic auditing services is soaring during our ongoing Covid-19 pandemic. In the space of Certified Public Accountants (CPA) service offerings, forensic auditing is a recognized tool for detecting and preventing fraud or financial crimes. Keep in mind when engaging with a member of the American Institute of Certified Public Accountants (AICPA) for […]
Additional IRS Funding Will Increase IRS Enforcement
How IRS Finds “Mismatches” via its Automated Compliance Programs
The IRS uses the information it collects to detect, prevent, and reduce noncompliance and fraud. The US Government accountability Office (GAO) produced a Tax Administration Report on December 2020 (Better Coordination Could Improve IRS’s Use of Third-Party Information Reporting to Help Reduce the Tax Gap). IRS research (via GAO) discloses that when third-party reporting exits, […]
How is your Organization’s Performance with Respect to Fraud?
US Regulations including the Foreign Corrupt Practices Act (FCPA), Sarbanes-Oxley Act and Anti-Bribery legislation require that Management in a business have a zero tolerance for fraud and have an Audit Committee in place that will establish the procedures for receipt of complaints and anonymous employee tips with respect to irregularities in accounting methods, internal controls, […]
IRS Global High Wealth Group is a Tool to Reduce the Tax Gap
In its April 28, 2021 Press Release (the “Release”) “Investing in the IRS and Improving Tax Compliance”, the US Department of the Treasury addresses available enforcement activities relating to reducing the U.S. Tax Gap; estimated to reach approximately $7 Trillion over the next ten years. The Release states that providing the IRS with the resources […]
