Cryptocurrency Holders: Avoid a Tax Audit!

The recent Coinbase, Inc. case marks the beginning of a new phase in IRS investigations, and U.S. taxpayers should beware that our government is unlikely to relinquish its pursuit of digital currency holders. This won't show. The IRS’s success in identifying and pursuing people with foreign accounts has forever changed...

IRS Focus: Tracking Cryptocurrency

In our recent blogs on the new Internal Revenue Service – Criminal Division (IRS-CI) priorities, we noted that new IRS-CI director John D. Fort has placed his department on high alert for tax fraud involving bitcoin and other digital currencies. Here, we discuss U.S. taxpayer noncompliance and various cryptocurrency tax...

2018 Priorities of the IRS Criminal Investigation Division (IRS-CI):
Part II, Two New Initiatives for Identification and Investigation of Tax Crimes

Despite the reduction in its budget, the IRS Criminal Investigation Division (IRS-CI) has begun to implement two new initiatives that hope to improve the department’s already impressive success rate. Last year, the IRC-CI made 2,251 criminal tax prosecution recommendations, which resulted in a conviction rate that exceeded 90%. On August...

2018 Priorities of the IRS Criminal Investigation Division (IRS-CI):
Part I, Types of Cases

Following his appointment as new Chief of the IRS Criminal Investigation Division (IRS-CI), John D. Fort announced the 2018 priority areas for IRS-CI enforcement. These goals include pursuit of specific areas of suspected taxpayer noncompliance as well as the implementation of new techniques for identification and investigation. In this post,...

The 2018 IRS Dirty Dozen,
Part III: Abusive Tax Shelters, Offshore Tax Schemes, and Frivolous Tax Arguments

In this post we continue our coverage of tax evasion schemes with three that make it to the IRS Dirty Dozen list every year: Abusive tax shelters, offshore tax schemes, and frivolous tax arguments. More tax evasion schemes to watch out for Tax shelters and offshore bank accounts are two...

The 2018 IRS Dirty Dozen,
Part II: Padding Deductions, Claiming Undeserved Business Credits, Falsifying Income, Inflating Refunds

In our last post, we covered four schemes aimed at taking advantage of well-meaning taxpayers. The next four items on the IRS Dirty Dozen for this year involve illegal actions taken by taxpayers to either reduce their taxable income, or to claim deductions or credits to which they are not...

The 2018 IRS Dirty Dozen,
Part I: Identity Theft, Phone and Phishing Scams, Fake Charities

Every year, the IRS releases a list of 12 schemes that are especially popular during the tax season. This year’s “Dirty Dozen” includes three types of warnings: (1) Protect your personal information and your assets, (2) Don’t engage in tax avoidance or evasion schemes, and (3) Don’t waste the government’s...