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 […]
The FATCA Loophole will bring more Enforcement Action
After a yearlong investigation, the US Senate Finance Committee probed into a FATCA Loophole and delivered an investigative report titled “The Shell Bank Loophole” that exposes a tax evasion scheme under a FATCA loophole that allows banks offshore to accept funds from U.S. persons without reporting them to the IRS. Senate Finance Committee Chair Ron […]
Can the IRS Collect Assets Abroad?
The answer to the question “Can the IRS Collect Assets Abroad”” is yes, based on the Office of Chief Counsel Internal Revenue Service memorandum dated February 24, 2022. The memorandum discusses the IRS Collection Procedures for Assets outside of the U.S. The IRS has several collection tools and the use of various information sources available […]
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 […]
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 […]
FCPA and the CPA
FCPA (Foreign Corrupt Practices Act) compliance ought to be at the forefront of companies of all sizes in all industries. Due to the globalization of company operations, as well as bribes paid to foreign officials advancing a company’s business interest, exposure to bribery and corruption continues to increase. A qualified CPA practitioner with FCPA expertise […]
Is your U.S. Passport in Jeopardy?
A Taxpayer’s U.S. Passport could be in jeopardy if the U.S. Taxpayer has seriously delinquent tax debt. The law authorizes the IRS to certify seriously delinquent tax debt to the U.S. State Department for the State Department to take action. The action that the State Department can take is to deny a delinquent U.S. Taxpayer’s […]
OFAC puts Accounting Services to Russian Nationals Off-Limits
Accounting Services, Trust and Corporate Formation, or Management Consulting Services are now off limits to Russian Nationals as per the May 8, 2022 U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) announcement of a Determination pursuant to Section 1(a)(ii) of Executive Order 14071 (released April 6, 2022). Effective 12:01am ET, June 7, […]
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 […]
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 […]
Beware of FATCA Certifications Being Under OFAC Review
In a quiet news release delivered on 3/23/22, the IRS updated the FATCA FAQ’s (Q. 22) to inform FATCA Stakeholders that a registration status could be changed to under review with a message indicating “For more information contact the Treasury Department Office of Foreign Asset and Control (OFAC). OFAC Sanctions Compliance is now at the […]
