High-Income Taxpayers Beware that IRS Actions Escalate if Tax Returns Aren’t Filed
On 2/29/24, the IRS announced a new effort focused on high-income taxpayers who have failed to file federal income tax returns in more than 125,000 instances since 2017. The mailings include more than 25,000 to those with more than $1 million in income, and over 100,000 to people with incomes between $400,000 and $1 million […]
Form 1099-K 2023 IRS Clarification
On 2/6/24, the IRS released new and updated FAQs regarding Form 1099-K 2023 given that on November 21, 2023 (via Notice 2023-74) the IRS announced that calendar year 2023 would also be a transition year for third party settlement organizations (TPSOs). This means that the IRS again delayed the effective date of the $600 threshold […]
Is Your 2023 Tax Preparer Asking You the Right Questions?
Tax season is here and on 2/1/24, the IRS reminded Taxpayers to choose a 2023 Tax Preparer carefully when preparing their 2023 Taxes. Taxpayers are ultimately legally responsible for all the information on their income tax return, regardless of who prepares it. A tax preparer can have different levels of skills, education and expertise and […]
Digital Assets 2023 Form 1040
On 1/22/24, the IRS reminded taxpayers that they must again answer the digital asset 2023 question on Forms 1040 and 1040-SR and report all digital asset related income when they file their 2023 federal income tax return, as they did for their 2022 federal tax returns for Digital Assets in 2022. The 1040 2023 Instructions […]
2023 Taxes: Best to Get Ready Now
Tax planning applies to everyone. On 1/22/24, IRS reminded all taxpayers to start getting ready to file their federal income tax return. Planning ahead can help taxpayers file an accurate return and avoid delays that can slow tax refunds. Going through statements, receipts, tax forms and other financial documents when it’s time to prepare to […]
FinCEN BOI FAQs Updated Once Again
On 12/12/23, FinCEN BOI FAQs were updated to include twenty-one new questions related to general questions, the reporting process, reporting companies, reporting requirements, initial reports, updated reports, compliance, and enforcement, FinCEN identifiers, and third-party service providers. FinCEN BOI FAQs have been updated since March 24, 2023, when FinCEN issued its first set of guidance materials […]
IRS Collection Notices to Re-Start in 2024
On 12/19/23, the IRS announced the restart of IRS collection notices as well as a new penalty relief for approximately 4.7 million individuals, businesses and tax-exempt organizations that were not sent an automated IRS collection notice reminder during the Covid-19 pandemic. The IRS will be providing about $1 billion in penalty relief for five million […]
Adequate Books and Records Often Overlooked!
Internal Revenue Code Section 6001 requires Taxpayers to maintain adequate books and records and “that that every person liable for any tax imposed by the Code, or for the collection thereof, must keep such records, render such statements, make such returns, and comply with such rules and regulations”. Adequate Books and Records or Well-Organized Records […]
Taxes Owed But NOT Fully Paid? IRS charging 8%.
On 8/25/23, the IRS announced that Interest rates increase for the fourth quarter 2023 would increase to 8% per year for the calendar quarter beginning 10/1/23 for taxes owed but not fully paid by individual taxpayers (“underpayments”). The 8% interest rate is up from 3% in December 2021 – a 167% increase for taxes owed […]
Export Control FinCEN Red Flags
On 11/6/23, the Department of Commerce’s Bureau of Industry and Security (BIS) and FinCEN issued a joint notice regarding export control evasion highlighting a new Suspicious Activity Report key term (“FIN-2023-GLOBALEXPORT”) for financial institutions to reference when reporting potential efforts by individuals or entities seeking to evade U.S. export controls NOT related to Russia’s invasion […]
Terrorist Financing FinCEN Red Flags
On 10/20/23, Terrorist Financing Red Flags were issued by FinCEN to assist financial institutions in identifying funding streams for the terrorist organization Hamas in response to Hamas’s terrorist attack on the people of Israel. FinCEN is urging financial institutions including virtual asset service providers (VASPs) to be vigilant in identifying suspicious activity relating to financing […]
The Tax Gap Increased to $688 Billion in Tax Year 2021
On 10/12/23 announced new tax gap projections for tax years 2020 and 2021 showing the projected gross tax gap increased to $688 billion in tax year 2021, a rise of more than $192 billion from the prior estimates for tax years 2014-2016 and a rise of $138 billion from the revised projections for tax years […]
