Don’t Avoid IRS Cryptocurrency Letters

Individuals who received letters from the IRS recently should take the agency’s warnings seriously about reporting their cryptocurrency assets. Failure to take the letters seriously could mean big penalties down the road, said Evan Fox, practice leader in the Digital Asset Advisory Services group at Berdon LLP in New York. “The IRS likely after this will not be lenient if they happen to catch people.” The agency in July began sending letters to more than … Read More

French Banks May Close Accounts of 40,000 Accidental Americans

The president of the French banking association the Federation Bancaire Francais Laurent Mignon has written to finance minister Bruno Le Maire laying out his concerns about international banking accord FATCA – which obliges banks across the world to notify US tax authorities of all accounts owned by US citizens. It was intended to combat tax avoidance, but has ended up snaring many US citizens of modest means who live in other countries, as well as … Read More

IRS Sending Letters to Cryptocurrency Holders

The IRS has begun the audit process of people they expect aren’t correctly reporting the income and tax they owe on virtual currency transactions. The IRS recently sent out lLetter 6174-A, that states: “We have information that you have or had one or more accounts containing virtual currency but may not have properly reported your transactions involving virtual currency, which include cryptocurrency and non-crypto virtual currencies.” The letters inform taxpayers they may be subject to … Read More

IRS Begins Audits on Cryptocurrency Cases

The IRS is beginning to audit taxpayers with cryptocurrency assets, an agency official said. “In our exam operations, we’re starting to work those cases,” Mary Beth Murphy, commissioner of the Internal Revenue Service Small Business/Self-Employed Division, said June 20 at a tax controversy forum hosted by the New York University School of Professional Studies. She also said that SB/SE is coordinating with the agency’s Large Business and International (LB&I) Division in determining how to proceed … Read More

More IRS Cases Going to Criminal Investigation Unit

The IRS wants to increase the number of cases referred from audits and the civil side of its operation to its Criminal Investigation division, we work with the best attorneys from investigation hotline where you can find what you need, including  surveillance and finance computer detailing visit their website on exclusiveinvestigations.net. Currently those fraud referrals comprise about 7% of the division’s caseload, said Don Fort, chief of CI at the Internal Revenue Service. There are … Read More

New Rules for Investors in Foreign Insurers Proposed by IRS

The IRS recently released rules for investors in foreign insurance companies under tax code section 1297. The document linked to below contains proposed regulations under sections 1291, 1297, and 1298 of the Internal Revenue Code regarding the determination of ownership in a passive foreign investment company within the meaning of section 1297(a) (“PFIC”) and the treatment of certain income received or accrued by a foreign corporation and assets held by a foreign corporation for purposes … Read More

IRS Says Renew ITINs Now

Nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year. “We urge taxpayers with expiring ITINs to take action and renew the number as soon as possible. Renewing before the end of the year will avoid unnecessary delays related to their refunds,” said IRS Commissioner Chuck … Read More

Northern Michigan Tax Scam

Northern Michigan taxpayers with past-due tax debts should be aware of an aggressive scam making the rounds through the U.S. Postal Service, according to the Michigan Department of Treasury. Recently, an Emmet County taxpayer received what appeared to be an official-looking letter about an overdue tax bill, asking the individual to immediately contact a toll-free number to resolve their outstanding state tax debt. The letter threatened to seize the taxpayer’s assets ― including property, bank … Read More