In a new Sanctions Compliance Guide, The Office of Foreign Assets Control (OFAC) of the U.S. Treasury reiterates that compliance obligations apply equally to transactions involving virtual currencies and those involving...more
11/2/2021
/ Bitcoin ,
Blocked Person ,
Compliance Management Systems ,
Crypto Exchanges ,
Cryptocurrency ,
Digital Currency ,
Economic Sanctions ,
Financial Transactions ,
Internal Controls ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Standards ,
SDN List ,
Virtual Currency
A surge in cryptocurrency prices this year created many crypto paper millionaires and brought millions into the game. But the digital currency market is a rollercoaster ride. As a result, many of those fortunes have already...more
If you’ve engaged in cryptocurrency or other virtual currency transactions worth $20,000 in any one year between 2016 and 2020, the IRS wants to hear from you. The IRS believes thousands of taxpayers are not telling the...more
7/20/2021
/ Bitcoin ,
Capital Gains ,
Cryptocurrency ,
Digital Currency ,
Financial Transactions ,
Income Taxes ,
Investment ,
IRS ,
John Doe Investigation ,
Popular ,
Reporting Requirements ,
Tax Liability ,
Tax Planning ,
Virtual Currency
Under current FinCEN regulations, a foreign account holding virtual currency is not reportable on the FBAR. However, FinCEN in its FinCEN Notice 2020-2, proposes amending reports of foreign financial accounts (FBAR)...more
7/8/2021
/ Anti-Money Laundering ,
FATCA ,
FBAR ,
FinCEN ,
Foreign Financial Institutions (FFI) ,
Future Tax Treatment ,
IRS ,
Regulatory Requirements ,
Reporting Requirements ,
Tax Planning ,
Virtual Currency
En el comentario “A Closer Look: Impacting the Tax Gap”, el Comisionado del IRS, Chuck Rettig, revela que el IRS ha cambiado su enfoque de fiscalización a declaraciones de impuestos que incluyen contribuyentes de altos...more
La diferencia entre el monto del impuesto adeudado por los Contribuyentes para un año determinado y el monto que realmente se paga oportunamente para ese mismo año se conoce como “Brecha Fiscal Bruta” (“Tax Gap”). El IRS...more
The difference between the amount of tax owed by Taxpayers for a given year and the amount that is actually paid timely for that same year is known as the “Gross Tax Gap”. The IRS looks at this number as an estimate of the...more
Taxpayers who engaged virtual currency transactions in 2020 must answer a Yes or No Question on page 1 of Form 1040 or Form 1040-SR. The question is: “At any time during 2020, did you receive, sell, send, exchange or...more
On March 6, 2021, Forbes reported that Damon Rowe, Director, Fraud Enforcement Office, Internal Revenue Service, Washington, DC, remarked that the IRS “added some crown jewels,” including a dedicated team of IRS Criminal...more
5/4/2021
/ Blockchain ,
Cryptocurrency ,
Distributed Ledger Technology (DLT) ,
Enforcement Guidance ,
Financial Crimes ,
Financial Fraud ,
Innovative Technology ,
IRS ,
Regulatory Oversight ,
Tax Evasion ,
Tax Liability ,
Virtual Currency
On September 24, 2020, the TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION (TIGTA) issued a final audit report: “The Internal Revenue Service Can Improve Taxpayer Compliance for Virtual Currency Transactions” that...more
On October 1, 2020, the Financial Crimes Enforcement Network (FinCEN) issued an advisory to alert Financial Institutions (FI) relating to “predominant trends, typologies, and potential indicators of ransomware and associated...more
11/3/2020
/ Corporate Governance ,
Cyber Attacks ,
Cyber Crimes ,
Cybersecurity ,
Data Breach ,
Financial Institutions ,
FinCEN ,
Hackers ,
Money Services Business ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Ransomware ,
Virtual Currency
On February 12,2020, the U.S. Government Accountability Office (GAO) published a Report on Virtual Currencies which discusses whether Taxpayers who use Virtual Currency (VC) are fully meeting their tax obligations. ...more
6/9/2020
/ Bitcoin ,
Cryptocurrency ,
Digital Currency ,
FATCA ,
FBAR ,
Filing Requirements ,
Financial Transactions ,
IRS ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Virtual Currency
In 2019, taxpayers who engaged in a transaction involving virtual currency will need to file Schedule 1, Additional Income and Adjustments to Income. Schedule 1 of the 2019 1040 Form presents the question to Taxpayers...more
On May 2, 2019, OFAC (Office of Foreign assets Control) published guidance titled “A Framework for OFAC Compliance Commitments”. The purpose of the OFAC Framework guidance is to encourage a “risk-based” approach to...more
1/31/2020
/ Administrative Proceedings ,
Cooperative Compliance Regime ,
Customer Due Diligence (CDD) ,
Economic Sanctions ,
Foreign Affiliates ,
Foreign Entities ,
Foreign Subsidiaries ,
Liability ,
Office of Foreign Assets Control (OFAC) ,
Payment Processors ,
Regulatory Requirements ,
Regulatory Violations ,
Risk-Based Approaches ,
Tax Liability ,
Tax Planning ,
Virtual Currency
On 10/9/19, IRS issued Rev. Rul. 2019-24 addressing the issues of a Taxpayer having gross income under § 61 of the Internal Revenue Code as a result of a hard fork of a cryptocurrency that the Taxpayer owns if the Taxpayer...more
12/13/2019
/ Bitcoin ,
Blockchain ,
Cryptocurrency ,
Distributed Ledger Technology (DLT) ,
Financial Transactions ,
Gross Proceeds ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Popular ,
Tax Liability ,
Tax Planning ,
Virtual Currency
During the month of October 2019, IRS issued Revenue Ruling 2019-24, FAQ’s on Virtual Currency Transactions and a DRAFT Form of Schedule 1, which, for the first time presents the question: “At any time during 2019, did you...more
11/15/2019
/ Bitcoin ,
Capital Gains ,
Cryptocurrency ,
Digital Currency ,
Filing Requirements ,
Financial Transactions ,
Income Taxes ,
Investment ,
IRS ,
Popular ,
Reporting Requirements ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Virtual Currency
IRS Large Business and International (IRS LBI) currently has 59 Active Compliance Campaigns. The purpose of the IRS compliance campaign strategy is to redefine large business compliance work and build a supportive...more
10/11/2019
/ Cooperative Compliance Regime ,
Expatriates ,
FATCA ,
Foreign Earned Income ,
Foreign Tax Credits ,
Income Taxes ,
IRS ,
Life Insurance ,
MVPD ,
Noncompliance ,
Offshore Banks ,
OVDP ,
S-Corporation ,
Swiss Banks ,
Tax Audits ,
Tax Credits ,
Tax Planning ,
Tax Treaty ,
TEFRA ,
Variable Annuities ,
Virtual Currency
OFAC (Office of Foreign Asset Control) compliance applies to all US persons; including, all US citizens and permanent resident aliens regardless of their location, all persons and entities within the US, all US incorporated...more
FinCEN defines a Money Service Business (MSB) as any person DOING BUSINESS, whether or not on a regular basis or as an organized business concern, in one or more of the following capacities...more
7/22/2019
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Bitcoin ,
Civil Monetary Penalty ,
Enforcement Actions ,
Financial Transactions ,
FinCEN ,
Money Laundering ,
Money Services Business ,
Money Transmitter ,
Peer-to-Peer ,
Risk Management ,
Suspicious Activity Reports (SARs) ,
Tax Planning ,
Virtual Currency
On May 30, 2018, the AICPA (American Institute of Certified Public Accountants) wrote a letter to the IRS to obtain further definition and clarity regarding Virtual Currency (VC) FATCA and FBAR reporting requirements....more
6/10/2019
/ AICPA ,
Anti-Money Laundering ,
FATCA ,
FBAR ,
FinCEN ,
Foreign Financial Institutions (FFI) ,
Future Tax Treatment ,
IRS ,
Reporting Requirements ,
Required Forms ,
Tax Planning ,
Virtual Currency
The FATF (FATF) is an inter-governmental body with 38 members that sets standards and promotes the implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and threats...more
4/29/2019
/ AML/CFT ,
BSA/AML ,
Cryptocurrency ,
Customer Due Diligence (CDD) ,
Digital Assets ,
FATF ,
Financial Institutions ,
Money Laundering ,
Regulatory Oversight ,
Regulatory Standards ,
Tax Planning ,
Virtual Currency
Virtual Currency (VC) investors continue to have accounting challenges at tax time. They are seeking to better understand and comply with their U.S. tax regulatory obligations when using VC. ...more
4/8/2019
/ 1099s ,
Bitcoin ,
Capital Gains ,
Digital Assets ,
Digital Currency ,
Financial Transactions ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investment Opportunities ,
IRS ,
Reporting Requirements ,
Tax Liability ,
Tax Planning ,
Virtual Currency
On November 15, 2018, the Financial Crimes Enforcement Network (FinCEN) announced the issuance of a “Revised” Geographic Targeting Order (GTO) that requires U.S. title insurance companies (Covered Business) to identify the...more
3/25/2019
/ Anti-Money Laundering ,
Beneficial Owner ,
Currency Transaction Reports (CTR) ,
FinCEN ,
Geographic Targeting Order ,
Real Estate Investments ,
Real Estate Transactions ,
Reporting Requirements ,
Residential Real Estate Market ,
Shell Corporations ,
Tax Planning ,
Title Insurance ,
Virtual Currency
On January 31, 2017, the IRS Large Business and International Division (LBI) announced a compliance campaign strategy to redefine large business compliance work and build a supportive infrastructure inside the LBI. ...more
12/10/2018
/ Audits ,
Cooperative Compliance Regime ,
Corporate Taxes ,
Economic Development ,
Foreign Earned Income ,
Foreign Tax Credits ,
Internal Revenue Code (IRC) ,
IRS ,
Large Business & International Division (LB&I) ,
Offshore Funds ,
S-Corporation ,
Swiss Banks ,
Tax Planning ,
TEFRA ,
Transition Tax ,
Virtual Currency
El 8 de agosto de 2018, el Director de FinCEN, Kenneth A. Blanco, pronunció un discurso en la Conferencia Técnica (Legal) Chicago-Kent Block 2018. Los puntos más destacados de sus comentarios incluyen...more
12/6/2018
/ AML/CFT ,
Bitcoin ,
BSA/AML ,
Cryptocurrency ,
Digital Currency ,
Financial Services Industry ,
Financial Transactions ,
FinCEN ,
Initial Coin Offering (ICOs) ,
Money Laundering ,
Money Transmitter ,
Token Sales ,
Virtual Currency