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 […]
Victim of Crypto Fraud? A Forensic Accountant May be Able to Help
Victim of Crypto Fraud? A Forensic Accountant May be Able to Help. ARTICLE PUBLISHED BY THE DAILY BUSINESS REVIEW 5/10/22
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 […]
“Reciprocal FATCA” Bill will be a Game Changer
Under the concept of “Reciprocal FATCA” financial institutions and brokers ought to start preparing to assume greater and expanded reporting responsibilities. As FATCA Stakeholders, financial institutions, and brokers, such as U.S. digital asset exchanges, need to get ready to share information on an automatic basis with the US Tax partner jurisdictions. The U.S. does not […]
TIGTA Report Sheds Light on the Future of FATCA Enforcement
The TIGTA Report dated April 7, 2022 details six recommendations for additional actions needed to address Non-Filing and Non-Reporting Compliance Under FATCA. The IRS agreed with five out of the six recommendations in the TIGTA Report which signal that FATCA enforcement will increase in terms of collection actions, compliance actions for under reporters, penalty assessments, […]
U.S. Department of Labor has “Serious Concerns” over 401(k) Plan’s investments in Cryptocurrencies
The U.S. Department of Labor cautions plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan’s investment menu for plan participants. Is it prudent for a Fiduciary to expose 401(k) plan’s participants to direct investments in cryptocurrencies, or other products whose value is tied to cryptocurrencies? The short […]
How Money Received through “Crowdfunding” May be Taxable
IRS may contact the recipients of crowdfunding campaign proceeds if not reported. IRS issues a soft alert to Taxpayers regarding their tax obligations for monies received under crowdfunding activities as well as the benefits of recordkeeping. What is Crowdfunding? It is the activity of raising or soliciting money (contributions) from a large number of people […]
How will FinCEN Implement the Beneficial Ownership Information Reporting Provisions of the Corporate Transparency Act (CTA)? They want your input.
FinCEN has been busy in the quest to fight corruption as evidenced by back-to-back issuance of Notices of Proposed Rulemaking (NPRMs). On 12/6/21, they issued the (Regulatory Process for New Real Estate Sector Reporting Requirements to Curb Illicit Finance) and on 12/7/21, they issued the Proposed Rule for Beneficial Ownership Reporting to Counter Illicit Finance […]
FED OPENS DEBATE ON U.S. DIGITAL CURRENCY
Report Examines Pros and Cons of CBDC The Federal Reserve is considering issuing a Central Bank Digital Coin (CBDC), according to a new report considering the pros and cons of such a move. Issuing this digital currency would be the first type of new money issued by the Fed since the first $10 bill was […]
