IRS Commissioner Hylton sends an important message to high income non-filers
On December 3, 2020, the IRS published “How the IRS prioritizes compliance work on high income non-filers through national and international efforts” in the Closer Look. It addresses how the IRS is in pursuit of high-income non-filers as an important service and gives its respect to many Americans who pay their taxes. The IRS’s sentiment […]
Is Section 314 of the USA PATRIOT Act Working?
Section 314 of the USA PATRIOT Act (Sec 314) was drafted by Congress in 2001 to allow financial institutions to work with law enforcement agencies and with each other to support the common goal of deterring money laundering and terrorist financing. It provides financial institutions with the ability to share information with one another (under […]
“Complexity will not hide crime from law enforcement,” California U.S. Attorney on Brockman Indictment
The U.S. Department of Justice (DOJ) 39 count indictment charging Robert T. Brockman, with tax evasion, wire fraud, money laundering, and other offenses, demonstrates that the DOJ is committed to the investigation and prosecution of the costliest and most sophisticated tax crimes in the US. The DOJ stated that “IRS Criminal Investigation aggressively pursues tax […]
Are you purchasing Real Property from a Foreign Person?
On 9/14/20, the IRS announced 4 New Compliance Campaigns . One Campaign addresses FIRPTA (Foreign Investment in Real Property Tax Act of 1980) Reporting Compliance for Non-Resident Aliens (NRAs). FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests. This IRS campaign is intended to increase FIRPTA voluntary compliance […]
GAFILAT Identifies Money Laundering/Terrorist Financing Emerging Threats
GAFILAT (Financial Action Task Force of Latin America) published a Second Update to the Money Laundering Regional Threat Report (2017-2018) that includes: ANNEX VI: THREATS RELATED TO THE COVID-19 PANDEMIC. Considered to be a regional money laundering threat analysis, the report’s section related to Covid-19 highlights how criminals are taking advantage of this difficult situation […]
Erroneous FACTA Withholding?
What if a U.S. Withholding Agent of a Foreign financial Institution (FFI) erroneously applies a 30% Internal Revenue Code (IRC) Chapter 4 FATCA Withholding to a payment to the FFI? What can be done to recover the funds? Who is a Withholding Agent? You are a withholding agent for purposes of Chapter 4 if […]
Did you know that the IRS is Involved with Investigating and Prosecuting Bribery?
In 1977, the United States enacted the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits an offer, payment, promise or the authorization of a payment of money or anything of value (a/k/a bribery) to a foreign official for the purpose of obtaining or retaining business. Moreover, it prohibits individuals and businesses from knowingly falsifying books […]
An Interagency Statement from Regulators and a FinCEN Statement provide clarity Regarding Enforcement Actions
On August 13, 2020, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Office of the Comptroller of the Currency issued a JOINT STATEMENT ON ENFORCEMENT OF BANK SECRECY ACT/ ANTIMONEY LAUNDERING REQUIREMENTS. Five days later, on August 18, 2020, FinCEN, as administrator […]
Violating the FCPA may Trigger other U.S. Laws such as the Travel Act
There are other U.S laws that intersect with the FCPA. A violation of the FCPA may also constitute a violation of the characteristics of another U.S. Law – in this case the Travel Act. If the conduct of an Entity or an Individual intersects the FCPA’s antibribery or accounting provisions, the conduct of an Entity […]
U.S. Financial Institutions and FATCA
Little is written regarding FATCA and U.S. Financial Institutions (FI). That said, U.S. Financial Institutions have FATCA responsibilities. In the absence of permitted exceptions, FATCA requires U.S. FIs that make payments of most types of U.S. source withholdable income to non-U.S. persons to withhold a 30% tax on that income. This requires U.S. Financial Institutions […]
How does IRS Identify Cases with Audit Potential?
Understanding how the IRS identifies cases that have audit potential can be learned from the CONGRESS OF THE UNITED STATES (CONGRESSIONAL BUDGET OFFICE) Report released on July, 2020: Trends in the Internal Revenue Service’s Funding and Enforcement. This report addresses IRS trends in funding, staffing and detailed views of tax law enforcement. IRS Enforces Tax […]
What happens when Taxpayers try to tell the IRS that it is not “Mea Culpa”?
According to the IRS Manual, reasonable cause for abating penalties is based on all the facts and circumstances of a Taxpayer’s situation. IRS will consider reasons which establish that a Taxpayer used all ordinary care and prudence to meet required Federal tax obligations but were nevertheless unable to do so. So, when Taxpayers attempt to […]
