1099-DA Could Come 2025
On 4/19/24, the IRS published draft Form 1099-DA for reporting digital asset proceeds from broker transactions. The IRS states that: “This early draft release reflects the notice of proposed rulemaking that appeared in the Federal Register on August 29, 2023. This early draft release may change based on decisions made in response to comments received […]
High Income High Wealth Taxpayers Pursued by IRS
On 5/4/24, the U.S. Department of the Treasury and the IRS outlined the accomplishments achieved in the first year of implementation of the Strategic Operating Plan, a comprehensive roadmap to transform the IRS using Inflation Reduction Act (IRA) resources. Part of the IRS Strategic Operating Plan includes an expanded focus on the High Income High […]
Trusts and the CTA
On April 18, 2024, FinCEN updated FAQs that address Trusts and the CTA (Corporate Transparency Act). 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 […]
Mail From the IRS
For the most part, Taxpayers do not want to receive mail from the IRS or open mail from the IRS. This is why IRS issued Tax Tip 2024-45 on May 6, 2024 to let taxpayers know what taxpayers should do if they receive mail from the IRS. Receiving mail from the IRS can be worrisome […]
Access to BOI: FinCEN Phased Approach
On 4/18/24, FinCEN updated its FAQ Section and added a new section titled “Access to BOI Information”. This new section addresses the phased approach from FinCEN to providing access to BOI – beneficial ownership information – as FinCEN is not currently accepting requests for access to BOI. FinCEN states that it will provide further guidance […]
Offer in Compromise: Opportunity to Solve Tax Debt
IRS issued Tax Tip 2024-37, April 24, 2024, to inform taxpayers that can’t pay their full tax debt or if paying would cause financial hardship, that they should consider applying for an offer in compromise which is a program that could provide an opportunity to eligible taxpayers to solve their tax debt with the IRS […]
How to Amend a Tax Return?
The IRS released Tax Tip 2024-38, April 25, 2024, to explain to taxpayers how to amend a tax return. If a taxpayer discovers an error after filing their return, the taxpayer may need to amend a tax return. IRS states that when a taxpayer realizes that their federal tax return has a math error, missing […]
Dirty Dozen 2024
On 4/11/24, the IRS concluded the release of the Dirty Dozen 2024. The Dirty Dozen is an annual taxpayer awareness campaign which began in 2002 listing twelve scams and schemes that place taxpayers, businesses, and the tax professional community at risk of losing money, personal information, data and more. The Dirty Dozen 2024 is an […]
Tax Strategies and Schemes to Avoid Taxes at IRS Forefront
On 4/11/24, the IRS wrapped up its 2024 Dirty Dozen List with a “warning to taxpayers regarding promoters selling bogus tax strategies and fraudulent offshore schemes designed to reduce or avoid taxes altogether”. Tax strategies and schemes to avoid taxes remain a high priority for the IRS. “Taxpayers should be wary of anything that seeks […]
Social Media Tax Advice Can Lead to Trouble
On 4/8/24, the IRS continued updating the Dirty Dozen list for 2024 including how social media tax advice can lead taxpayers to trouble as inaccurate or misleading tax information is circulating. IRS is re-issuing a warning, just like they did in 2023, regarding trusting social media tax advice that can lure taxpayers and tax professionals […]
Can You Appeal the IRS?
Taxpayers have the right to appeal the IRS. Understanding how to appeal the IRS is critical and Taxpayers ought to consider retaining representation in order to diminish the risks of litigation. Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer before Appeals. An appeals office is the only level of […]
High Net Worth Individuals get Warning from IRS
On 4/10/24, as part of its Dirty Dozen Campaign for 2024, the IRS issued a warning to High Net Worth Individuals regarding three tax traps designed for them by dishonest promoters and shady tax practitioners. High Net Worth individuals continue to be targets of tax schemes and aggressive tax strategies designed to reduce taxes. Examples […]
