2020 Year in Review: Lessons Learned and Insights for Avoiding IRS Scrutiny in 2021Articles/News, Offshore Account Update
Posted on December 31, 2020 | Share
As we close the books on 2020, Tax Day is suddenly right around the corner once again. While 2020 presented unprecedented challenges for New Jersey residents and businesses, the IRS still expects and demands full compliance, and even unintentional tax mistakes could lead to significant repercussions in 2021. So, as a New Jersey taxpayer, what do you need to know in order to avoid unwanted scrutiny? Here is a look back at 10 of the top articles that New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, published in 2020:
New Jersey Businesses May Be at Risk for Coronavirus-Related Tax Fraud Investigations
From Paycheck Protection Program (PPP) and government contract fraud to failing to remit employment taxes and misclassifying employees, the IRS is targeting businesses for a broad range of offenses in relation to the COVID-19 pandemic. Companies that have thrived during the pandemic may be particularly at risk, as the IRS may question why these companies have been able to maintain their profitability while others have struggled. Learn more:
- New Jersey Companies Thriving During the COVID-19 Crisis May Be at Risk for Tax Fraud Investigations
New Jersey Cryptocurrency Investors May Also Be at Risk for IRS Scrutiny
During 2020, the IRS sent several signals that it intends to continue targeting individual and corporate taxpayers for cryptocurrency-related tax law violations in 2021. The IRS sent “education” letters to thousands of cryptocurrency investors throughout the year; however, even if you did not receive one of these letters, this does not necessarily mean that your past filings have been compliant. Learn more:
New Jersey Residents with Offshore Accounts Need to Prioritize Disclosure Compliance
New Jersey residents and businesses that have offshore accounts need to comply with the Bank Secrecy Act (BSA) and the Foreign Account Tax Compliance Act (FATCA). Those that do not can face steep penalties; and, while there are “voluntary disclosure” options available, these options must be pursued carefully in order to avoid increasing your risk of facing a tax fraud audit or investigation. Learn more:
- What is the Difference Between the IRS’s Voluntary Disclosure Practice and Its Streamlined Filing Compliance Procedures?
IRS Fraud Enforcement Office Will Target Small Businesses and Self-Employed Individuals in 2021
In 2020, the IRS opened a new Fraud Enforcement Office within its Small Business/Self Employed Division. This office will be targeting small businesses, small business owners and self-employed individuals in 2021, and there are several issues that have the potential to lead to problems in the event of a Fraud Enforcement Office audit. Learn more:
Need IRS Tax Help or Advice? Schedule a Confidential Consultation with New Jersey Tax Attorney Kevin E. Thorn
Do you have questions or concerns about federal tax law compliance or facing an IRS audit or investigation? If so, we encourage you to schedule a confidential consultation. To request an appointment with New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 201-355-8202, email firstname.lastname@example.org or tell us how we can help online today.