White House follows up with Digital Assets Priorities Identified in Executive Order
President Biden’s Executive Order (EO) on Ensuring Responsible Development of Digital Assets was signed on 3/9/22 acknowledging how the rise in digital assets creates an opportunity to reinforce the leadership of the U.S. in the global financial system as well as its implications for consumer protection, financial stability, national security, and climate risk. On 9/16/22, […]
Form 1040 2022 Draft: IRS Changes Crypto Question
On 9/1/22, the IRS posted Form 1040 2022 Draft. Form 1040 is the U.S. Individual Income Tax Return and since tax year 2019, Form 1040 has been asking taxpayers about their virtual currency doings on the front page. Form 1040 2022 Draft changes the crypto terminology from “virtual currency” to “digital assets”. The purpose of […]
FDIC Crypto Protection? No way!
On 7/29/22, the FDIC published a Crypto Advisory: “Advisory to FDIC-Insured Institutions Regarding Deposit Insurance and Dealings with Crypto Companies” due to its concern regarding the confusion that consumers have regarding Crypto assets “offered by, through, or in connection with insured depository institutions (insured banks)”. Crypto assets are not legal tender (not fiat currency) and […]
Dirty Dozen for 2022
According to the IRS, the Dirty Dozen represents the worst of the worst tax scams. The Dirty Dozen is a list that is compiled annually by the IRS in order to alert taxpayers, tax professionals and financial institutions of tax scams that occur at any time during the year. This list has been published by […]
Digital Asset Report from DOJ
A Digital Asset Report was issued on 6/6/22 by the DOJ – Report pursuant to Section 8(b)(iv) of President Biden’s March 9, 2022, Executive Order on Ensuring Responsible Development of Digital Assets. The Report is presented by Attorney General Merrick Garland and addresses how the increasing use of digital assets impacts investors, consumers, and businesses […]
FATF 2022 Strategic Initiatives
The Financial Action Task Force (FATF) is 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. It is considered to be the global money laundering and terrorist financing “watchdog” and more than 200 countries and jurisdictions are committed […]
IRS warns Taxpayers against Tax Avoidance Strategies
The IRS wrapped its 2022 Dirty Dozen scams list urging taxpayers to watch out for and avoid being misled by tax avoidance strategies. Making the 2022 List are Cryptocurrency, non-filing, abusive syndicated conservation easement and abusive micro-captive deals. Taxpayers ought to be aware that they can not hide income from the IRS: “These tax avoidance […]
1099-K: Will Small Businesses be Ready for the New Form?
As a result of the American Rescue Plan Act of 2021, effective for Tax Returns for the Calendar year 2022, small business that accept payment cards as a form of payment will receive a Form 1099-K for the gross amount of the payments made to them through the use of a payment card during the […]
Is your Crypto in a Personal Wallet or in an Exchange?
The answer to the question: “Is your Crypto in a Personal Wallet or in an Exchange?” matters as we have learned that cryptocurrency held in a Crypto Exchange is NOT the same as cryptocurrency held in a Personal Wallet in terms of protection, particularly in the event of bankruptcy. That said, cryptocurrency investors ought to […]
FATCA coming to Digital Assets
The Biden’s Administration’s Fiscal Year 2023 Revenue Proposal includes “Modernize Rules” to address Digital Assets that will require reporting by certain Taxpayers of Foreign Digital Asset Accounts. Tax compliance and enforcement with respect to digital assets has become a growing problem for the US Government given that the digital asset industry is web based, and […]
Victim of Crypto Fraud? A Forensic Accountant May be Able to Help
Victim of Crypto Fraud? A Forensic Accountant May be Able to Help. ARTICLE PUBLISHED BY THE DAILY BUSINESS REVIEW 5/10/22
IRS updates its Voluntary Disclosure Program, and it includes Crypto
The IRS wants to encourage Voluntary Disclosure participation and reduce Taxpayer uncertainty, but its current Voluntary Disclosure Program is not set up for success according to the 2021 National Taxpayer Advocate Annual Report, issued in January 2022. Shortly thereafter, in February 2022, the IRS updated the Program to include crypto reporting, a penalty structure for […]
