Tax Controversy Sentinel Blog

https://taxcontroversy.foxrothschild.com/

Matt serves as the editor for the firm's Tax Controversy Sentinel blog, which reports on the latest developments in all aspects of tax controversy matters. These include criminal tax investigations and prosecutions, civil tax matters before the Internal Revenue Service including audits, appeals, and collection matters, as well as tax litigation. The blog also covers international tax compliance issues, including foreign bank account reporting (FBAR), the Foreign Account Tax Compliance Act (FATCA), and the IRS’s voluntary disclosure programs for both domestic and offshore issues.  Finally, Tax Controversy Sentinel addresses compliance issues arising under the Bank Secrecy Act, the USA Patriot Act, FATCA, the anti-money laundering laws and regulations, and economic sanctions regimes.

Recent Blog Posts

  • IRS Extends Tax Filing Deadline One Day Due to “Systems Issues” The Internal Revenue Service announced today that it is providing taxpayers an additional day to file their tax returns following a computer problem that arose early in the morning on April 17, the tax filing deadline. Taxpayers will now have until midnight on Wednesday, April 18, to file their returns. No action is necessary in order for taxpayers to receive the benefit of an extra day. “This is the busiest tax day of the year, and the IRS apologizes for the inconvenience... More
  • On the Eve of Tax Day, a Recap of the IRS “Dirty Dozen” for 2018 Tomorrow is the annual deadline for the filing of individual income tax returns for calendar year 2017.  The Internal Revenue Service expects to receive approximately 32 million returns in the final days leading up to April 17.  In addition, the IRS expects to receive about 12 million last-minute requests for extensions of the April 17 filing deadline.  With millions of taxpayers scrambling to meet tomorrow’s deadline, we provide this recap of the IRS’s annual list of the “Dirty Dozen” tax scams... More
  • With Tax Day Looming, Don’t Overlook Reporting of Cryptocurrency Transactions With the April 17 deadline for filing individual tax returns just around the corner, individuals who engaged in cryptocurrency transactions during 2017 must take care to properly report them on their tax returns. As we have previously reported, the IRS is focusing significant attention on tax compliance with respect to cryptocurrency transactions. Last year, the IRS prevailed in its long-running litigation with Coinbase seeking the names of clients who engaged in cryptocurrency transactions during 2013-2015, and Coinbase recently announced that... More
  • Internal Revenue Service Reminds Taxpayers to Report Offshore Bank Accounts on FBAR Form The Internal Revenue Service has issued its annual reminder to taxpayers that they report their foreign assets on their individual tax returns due on April 17, 2018. Individuals with offshore assets such as bank accounts generally have up to three reporting obligations with respect to such assets. First, individuals with foreign bank accounts must answer a series of questions that appear on Schedule B of the Form 1040 tax return. Second, individuals with foreign bank accounts may have to file... More
  • Offshore Tax Evasion Rounds Out IRS Annual “Dirty Dozen” for 2018 The Internal Revenue Service has issued a warning to taxpayers about avoiding taxes by hiding money or assets in unreported offshore accounts, a tax scam that remains on the annual “Dirty Dozen” for 2018. Offshore tax compliance has been a major focus for the IRS in recent years, and taxpayers should remain wary given the continuing focus on such schemes by both the IRS and the Justice Department. Compiled annually by the IRS, the “Dirty Dozen” lists a variety of common scams... More
  • Abusive Tax Shelters Ranked Eleventh on IRS Annual “Dirty Dozen” for 2018 The Internal Revenue Service has warned taxpayers to be wary of abusive tax shelters, which remain on the annual “Dirty Dozen” list of tax scams for 2018. These sophisticated schemes, particularly those involving micro-captive insurance shelters, can be peddled by promoters and others to avoid taxes. Compiled annually by the IRS, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time of the year, but many of these schemes peak during filing season as people prepare... More
  • IRS Warns of Falsified Income and Fake Form 1099 Scams, Ranking Them Ninth on “Dirty Dozen” for 2018 As part of its annual “Dirty Dozen” list of tax scams, the Internal Revenue Service warned taxpayers of schemes that falsify income or involve phony Forms 1099. A common tax scam the IRS sees each year involves falsifying income in order to claim refundable credits, such as the Earned Income Tax Credit. Another frequent scheme involves the filing of false Forms 1099 and/or bogus financial instruments such as bonds, bonded promissory notes, or worthless checks. Compiled annually by the IRS, the... More
  • IRS Reminds Taxpayers to Report Virtual Currency Transactions With “tax day” fast approaching, the Internal Revenue Service on Friday reminded taxpayers that income from virtual currency transactions is reportable on their income tax returns. As we have previously reported, the IRS has for some time been focusing significant attention on tax compliance with respect to virtual currency transactions. Last year, the IRS prevailed in its long-running litigation with Coinbase seeking the names of clients who engaged in virtual currency transactions during 2013-2015, and Coinbase recently announced that it... More
  • Frivolous Tax Arguments Ranked Tenth on IRS “Dirty Dozen” for 2018 The Internal Revenue Service has issued a warning to taxpayers about using frivolous tax arguments to avoid paying taxes. Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish legal claims to avoid paying their taxes. Such arguments have been repeatedly thrown out of court. Compiled annually by the IRS, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time of the year, but many of these schemes peak during filing season as people prepare... More
  • Falsely Padding Deductions Garners Eighth Spot on IRS “Dirty Dozen” for 2018 As part of its annual “Dirty Dozen” list of tax scams, the Internal Revenue Service warned taxpayers to avoid falsely inflating deductions or expenses on tax returns. Common areas targeted by unscrupulous tax preparers involve overstating deductions such as charitable contributions, padding business expenses, or improperly claiming credits such as the Earned Income Tax Credit or Child Tax Credit. Compiled annually by the IRS, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter any time of the... More