Charitable LLCs Warning from IRS
On 11/4/24, the Internal Revenue Service issued a warning to taxpayers regarding the dangers of engaging with promoters of fraudulent tax schemes that involve donating ownership interests in closely held businesses, often referred to as “Charitable LLCs.” These schemes frequently target individuals with higher incomes and are classified as abusive transactions by the IRS. Typically, […]
Forms 3520 and 3520-A Late Filing get IRS Relief
On 10/24/24, the National Taxpayer Advocate shared on its NTA Blog that the IRS has discontinued its policy of automatically imposing penalties for late submissions of Form 3520, which pertains to foreign gifts and inheritances reported in Part IV of the form. By the end of the year, the IRS plans to start evaluating “reasonable […]
BOI Reporting Relief for Hurricane Victims
On 10/29/24, FinCEN announced Beneficial Ownership Information (BOI) Reporting Relief to specific victims of Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine. BOI Reporting Relief consists of an extension of six months to submit beneficial ownership information reports, which may include updates and corrections to previously submitted reports. “FinCEN has issued five […]
IRS Whistleblower Program Scores Big Win
The IRS Whistleblower Program helps boost the “fair and effective enforcement of our nation’s tax laws and the success of our voluntary tax system.” The IRS Whistleblower Program is dependent on people who become aware of tax fraud and tax non-compliance and report that information to the IRS. As per the IRS: “people with firsthand […]
Model 1 FFI’s Obtain Extension of Relief
IRS issued Notice 2024-78 on 10/28/24 providing the extension of temporary relief for FATCA Model 1 Financial Institutions (FFI’s) regarding the reporting of U.S. Taxpayer Identification Numbers. This means that the temporary relief outlined in Notice 2023-11 is extended, in accordance with the procedures and requirements specified in this Notice 2024-78, for certain FFI’s that […]
Pass-Through Entities are Under Scrutiny by IRS
On 10/22/24, the IRS announced that is has officially commenced operations of the newly established pass-through field operations unit within its Large Business and International (LB&I) division, which was announced last fall. This initiative aims to enhance the efficiency of audits conducted on pass-through entities. The establishment of a new unit dedicated to overseeing the […]
IRS IP PIN for the 2025 Tax Season
On 10/23/24, the IRS released Notice IR-2024-278 to encourage all taxpayers to sign up for an IRS IP PIN (identity protection personal identification number) to safeguard their identity and help protect against tax-related identity theft. The IRS states that the IP PIN, which is exclusively known to the individual and the IRS, serves to verify […]
Tax Year 2025 IRS Inflation Adjustments
On 10/22/24, the IRS released the annual inflation adjustments for tax year 2025 that will impact taxpayers when they file their 2025 returns in 2026. Following are the main items for tax year 2025: Standard Deductions Marginal Rates Alternative Minimum Tax Exemption Amounts Earned Income Tax Credit For qualifying taxpayers who have three or more […]
An ITIN is Not Valid Identification Outside the Federal Tax System
An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the IRS to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for Social Security Numbers (SSNs). ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing […]
Hurricane Helene and Milton IRS Relief
On 10/11/24, the IRS announced that it is ready to provide tax assistance for taxpayers affected by Hurricane Helene and Milton that devastated Alabama, Florida, Georgia, North Carolina and South Carolina, and parts of Tennessee and Virginia. Assistance applies to individuals and businesses. IRS the tax-related assistance for taxpayers that need to recover from Hurricane […]
Are Crowdfunding Monies Taxable?
On August 2024, the IRS, for the third time in two years, reminded taxpayers that crowdfunding monies may be taxable. Due to the popularity of crowdfunding monies raised online, the IRS issued News regarding how money raised through crowdfunding may be taxable via its First Notice as a Fact Sheet on March 2022 (FS-2022-20) and […]
IRS Report Card on Inflation Reduction Act
On 8/23/24, the IRS Report Card was released via Notice IR-2024-223 regarding the progress and improvements made possible by the Inflation Reduction Act (“IRA”). The IRS Report Card states that the IRA has made it possible for the “IRS to uncover and address tax evasion shrouded in complexity that requires subject matter expertise and data […]
