Beneficial Ownership Information Access
On 11/15/24, FinCEN updated two Beneficial Ownership Information Access FAQs. The theme of the 11/15/24 update is Beneficial Ownership Access in accordance with the Corporate Transparency Act. FinCEN had previously update the its FAQ Section on 4/18/24 when they added a new section titled “Access to BOI Information”. This was a new section that addressed […]
BIS New Guidance for FI’s Best Practices
On 10/9/24, the Bureau of Industry and Security (BIS) within the Department of Commerce has issued guidance aimed at financial institutions (FIs), outlining best practices for adherence to the Export Administration Regulations (EAR). This BIS new guidance offers foundational information regarding the EAR and outlines measures that financial institutions can implement to reduce the risk […]
Deepfake Media FinCEN Fraud Alert
On 11/13/24, FinCEN issued an alert aimed at assisting financial institutions in recognizing fraudulent schemes linked to the utilization of deepfake media generated by generative artificial intelligence (GenAI) tools. The alert for deepfake media outlines the various typologies related to these schemes, offers red flag indicators to aid in the detection and reporting of suspicious […]
Forms 3520 and 3520-A Late Filing get IRS Relief
On 10/24/24, the National Taxpayer Advocate shared on its NTA Blog that the IRS has discontinued its policy of automatically imposing penalties for late submissions of Form 3520, which pertains to foreign gifts and inheritances reported in Part IV of the form. By the end of the year, the IRS plans to start evaluating “reasonable […]
BOI Reporting Relief for Hurricane Victims
On 10/29/24, FinCEN announced Beneficial Ownership Information (BOI) Reporting Relief to specific victims of Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine. BOI Reporting Relief consists of an extension of six months to submit beneficial ownership information reports, which may include updates and corrections to previously submitted reports. “FinCEN has issued five […]
IRS Whistleblower Program Scores Big Win
The IRS Whistleblower Program helps boost the “fair and effective enforcement of our nation’s tax laws and the success of our voluntary tax system.” The IRS Whistleblower Program is dependent on people who become aware of tax fraud and tax non-compliance and report that information to the IRS. As per the IRS: “people with firsthand […]
OIC Mills Take Advantage of Taxpayers
On 9/19/24, the IRS issued a warning to taxpayers regarding OIC (Offer in Compromise) Mills that are taking advantage of taxpayers. OIC Mills promoters claim that their services are necessary to resolve taxpayer unpaid taxes owed to the IRS while charging excessive fees, often with no results. The promoters utilize aggressive marketing schemes that make […]
Model 1 FFI’s Obtain Extension of Relief
IRS issued Notice 2024-78 on 10/28/24 providing the extension of temporary relief for FATCA Model 1 Financial Institutions (FFI’s) regarding the reporting of U.S. Taxpayer Identification Numbers. This means that the temporary relief outlined in Notice 2023-11 is extended, in accordance with the procedures and requirements specified in this Notice 2024-78, for certain FFI’s that […]
Pass-Through Entities are Under Scrutiny by IRS
On 10/22/24, the IRS announced that is has officially commenced operations of the newly established pass-through field operations unit within its Large Business and International (LB&I) division, which was announced last fall. This initiative aims to enhance the efficiency of audits conducted on pass-through entities. The establishment of a new unit dedicated to overseeing the […]
IRS IP PIN for the 2025 Tax Season
On 10/23/24, the IRS released Notice IR-2024-278 to encourage all taxpayers to sign up for an IRS IP PIN (identity protection personal identification number) to safeguard their identity and help protect against tax-related identity theft. The IRS states that the IP PIN, which is exclusively known to the individual and the IRS, serves to verify […]
Tax Year 2025 IRS Inflation Adjustments
On 10/22/24, the IRS released the annual inflation adjustments for tax year 2025 that will impact taxpayers when they file their 2025 returns in 2026. Following are the main items for tax year 2025: Standard Deductions Marginal Rates Alternative Minimum Tax Exemption Amounts Earned Income Tax Credit For qualifying taxpayers who have three or more […]
TD Bank gets $1.3 Billion Penalty from FinCEN
On 10/10/24, FinCEN assessed a record $1.3 billion penalty against TD Bank for BSA violations. This unprecedented penalty should function as a cautionary message and a warning to all financial institutions. All financial institutions should critically evaluate whether they have developed and sustained a well-structured BSA/AML and CFT compliance program. The risk assessment process of […]
