2021 Year in Review: What New Jersey Residents Need to Know about Tax Compliance in 2022

As 2021 comes to a close, it is time for our annual look back at the top tax stories from the year. Here, New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, recaps some of the key issues that will continue to impact taxpayers’ reporting and payment obligations (and audit risks) in 2022:

What Do Taxpayers Need to Know About Offshore Asset Disclosure?

U.S. taxpayers in New Jersey who own offshore assets potentially have filing obligations under the Foreign Account Tax Compliance Act (FATCA) and Bank Secrecy Act (BSA). Noncompliance with these obligations can lead to substantial civil or criminal penalties. These articles provide an overview of what taxpayers need to know about complying with FATCA and the BSA—and what they need to know if they failed to comply with these statutes in 2021:

• 2021 FBAR and FATCA Compliance: What the IRS Wants You To Know
• Streamlined Filing vs. Voluntary Disclosure: Understanding the Differences
• What Are the Penalties for Failing to File an FBAR By October 15?

What Do Cryptocurrency Investors Need to Know about Federal Income Tax Compliance?

Cryptocurrency investors face some unique tax compliance challenges as well. As a result of the passage of the federal infrastructure bill in 2021, these challenges could become even greater in 2022 and subsequent years. In addition to managing the confluence of cryptocurrency transaction reporting and offshore asset disclosure, investors must be prepared to address a variety of other issues as well. Learn more:

• 5 Important Facts about Income Taxes for Cryptocurrency Investors
• IRS Issues Another “John Doe” Summons to Identify Cryptocurrency Investors
• Guide to Federal Tax Compliance for Cryptocurrency Investors

What are the IRS’ Enforcement Priorities for 2022?

As we reported in May, the IRS is planning to ramp up its enforcement efforts in the years to come. IRS Criminal Investigation (IRS CI) has recently undertaken efforts to enhance its investigative capabilities as well. With this in mind, taxpayers in New Jersey will be well-served to make sure they have a clear understanding of the IRS’ enforcement priorities heading into 2022:

• 10 Reasons Why You May Be Under Investigation By IRS CI
• IRS CI Continues to Target COVID-19 Relief Tax Fraud
• IRS CI 2021 Annual Report Sheds Light on Enforcement Priorities for 2022

What Should You Do if You Made Tax Mistakes in 2021?

Getting good tax advice isn’t easy. In fact, taxpayers can’t even necessarily rely on the advice they get from the IRS. So, what happens when you get bad advice? Or, what if you made tax mistakes on your own in 2021? These articles discuss the options that are available for remedying past violations before the IRS initiates an audit or investigation:

• Is Your Bank, Broker or Exchange Sharing Your Transactions with the IRS?
• Should You File an Amended Federal Tax Return?
• When Can (and Should) You Hire a Lawyer to Deal with the IRS?

Schedule an Appointment with New Jersey Tax Lawyer Kevin E. Thorn

If you need more information about any of these topics (or any other aspect of federal tax compliance), we encourage you to schedule a confidential consultation. To request an appointment with New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 201-355-8202, email ket@thornlawgroup.com or tell us how we can reach you online today.