Fraud is the Number One Crime in Money Laundering
On February 2024, the U.S. Treasury released the 2024 National Money Laundering Risk Assessment (NMLRA) which examines the current money laundering environment and identifies the ways in which criminals and other actors seek to launder funds. The Assessment aims to: inform the understanding of illicit finance risk by governmental and private sector actors, strengthen risk […]
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 […]
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 […]
Occupational Fraud is the Most Common Financial Crime
“Occupational Fraud is very likely the costliest and most common form of financial crime in the world” as per the 2022 Report to the Nations issued by the Association of Certified Fraud Examiners (ACFE) – the world’s largest anti-fraud organization. The Report states that “even with the shift toward digital payments, remote work environments, and […]
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, […]
What To Do If The IRS Wants to Audit You
Rule #1: Don’t Panic! Under the Biden Administration’s proposed American Families Tax Plan, there is the possibility of more tax audits, but only for a certain groups of high income people. That’s because more information would be reported to the IRS. The proposed Biden Plan could increase that substantially because the IRS would be receiving […]
How a Forensic Accountant Can Help Attorneys in Tax Fraud Cases
The IRS recently added new categories of tax fraud In its recently updated Fraud Handbook, the IRS adds new categories of tax fraud, including concealing domestic or foreign bank accounts and digital assets such as virtual currency. And they are anxious to prosecute. The level of detail in the Fraud Handbook provides a roadmap for […]
Forensic Audits are Trending
The demand for forensic auditing services is soaring during our ongoing Covid-19 pandemic. In the space of Certified Public Accountants (CPA) service offerings, forensic auditing is a recognized tool for detecting and preventing fraud or financial crimes. Keep in mind when engaging with a member of the American Institute of Certified Public Accountants (AICPA) for […]
How is your Organization’s Performance with Respect to Fraud?
US Regulations including the Foreign Corrupt Practices Act (FCPA), Sarbanes-Oxley Act and Anti-Bribery legislation require that Management in a business have a zero tolerance for fraud and have an Audit Committee in place that will establish the procedures for receipt of complaints and anonymous employee tips with respect to irregularities in accounting methods, internal controls, […]
Forensic Accountants augment a Financial Institution’s Corporate Governance Program
A financial institution’s understanding and management of financial crimes and their genesis would enhance and strengthen its Corporate Governance programs and internal controls. Forensic Accountants with a law enforcement background and with an understanding of the provisions of the Bank Secrecy Act (BSA), Title 31, rules and regulations issued by the federal bank supervisory agencies […]
IRS Agents Use Methods of Proof
The IRS has tools inside of its Internal Revenue Manual (“IRM”) available to its agents for determining a Taxpayer’s taxable income as well as documenting its adjustments and corrections through what it calls “Methods of Proof”. The IRM describes seven Methods of Proof for use by its agents who are pursuing its civil or criminal […]
A Forensic Accountant digs beneath the surface and finds what is missing
The decision to hire a Forensic Accountant can be a gamble. Not all possess critical characteristics such as being able to see beyond what is immediately in front of them utilizing a panoramic approach. Traditionally, a CPA looks at historical data, and focuses on the” fairness” of financial statement presentations and the preparation of tax […]
