The IRS always puts the enforcement goals in mind. Knowing who might be subject to tighter scrutiny can prepare you for an intrusive tax criminal investigation or audit. With that in mind, here are some of the most likely categories the IRS will focus on in the coming year:
COVID-19 tax relief regulations
The federal government is granting companies affected by the pandemic massive tax breaks. As a result, as the National Treasury’s watchdog, the IRS will closely monitor business deduction claims paid with PPP funds. The IRS only allows deductions for payments of certain eligible expenses. If your company has already made or is planning to make deductions for expenses paid with funds from the PPP, you should know that the IRS will most likely look closely at those claims. To make sure you are protected, contact the California Tax Defense Attorney and Chartered Accountant at The Tax Law Office of David W. Klasing today. Make an appointment for a consultation by calling our offices at (800) 681-1295 or booking online here.
Gambling
As a result of a number of legalization campaigns across the country in the recent past, online gambling has grown in popularity nationwide. With popularity comes control of the IRS. The agency has made online gambling-related tax compliance a priority for tax review and criminal investigations.
Health care
The IRS will look for healthcare tax fraud from multiple angles this year. Providers can be investigated for fraudulent billing for deductions, drug diversion, and fraud in nursing homes and chiropractors. The year, of course, brings more national intrigue into the functioning of the medical system. Expect the IRS’s focus to reflect that of the general public.
Foreign assets
Evasion of taxes and deliberate omission of foreign offshore information regarding funds and investments hidden in offshore areas is one of the greatest evils in the existence of the IRS. It is estimated that billions of dollars each year escape the tax grip of the US government due to complex financial plans that involve companies outside of the The United States. But now that the agency is improving its ability to uncover even the most sophisticated offshore circumvention plans, they have made no secret of their hope to correct this injustice. Pay close attention to the FBAR and other requirements for filing foreign offshore information, and note that the U.S. will tax the world income of its tax residents, even if the offshore income is foreign government taxes.
The “Dirty Dozen” Common Tax Schemes
The IRS’s Criminal Investigations Division publishes the “Dirty Dozen,” a list of a dozen different types of specific tax systems and other criminal activities that will be investigative priorities for the coming calendar year. This year’s list includes the following:
- Fraudulent charities
- Fake payments with repayment requests.
- Unbelieving tax writers
- Alignment with unreported foreign income and failure to return foreign information.
- Offer in compromise mills
- Human Resources Fraud
- Ransomware
- Phishing
- IRS identity
- Senior fraud
- Cheating in the nursing home
- Social media
Cryptocurrency
You might see a trend develop: as an activity grows in popularity, so does the IRS scrutiny. Even when the cryptocurrency market is awash with innovation and complexity, the government maintains its determination to ensure compliance in all areas.
All cryptocurrency transactions must be carefully tracked and recorded by the taxpayer in order to truthfully report federal return receipts. If you are invested in cryptocurrency and are unsure how to report your holdings to the federal government, contact the tax offices of David W. Klasing at (800) 681-1295.
Small businesses
Do You Think Your Small Business Is Safe? The IRS created a brand new department in 2020 specifically focused on investigating small businesses. The department is specifically tasked with finding suspicious returns from companies with assets worth at most. to investigate $ 10 million as well as independent contractors. The division’s main topics will be underreporting and defaults. Expect this new department to try to prove itself early on.
Bad faith accountant
This category was mentioned in the “Dirty Dozen” but deserves special mention as all signs point to an imminent government crackdown. The IRS aggressively pursues abusive preparers through the Return Preparer Program established for this purpose. Remember, even if your tax advisor is held criminally liable, your name is on the declaration, and you are ultimately responsible for any unpaid taxes. The IRS views malicious creators as an opportunity to investigate both the creator and the taxpayer. If you believe you have used the services of a tax return preparer who may be criminally liable, it is in your best interests to contact the tax offices of David W. Klasing so that we can back up your defense against the IRS. It is never too early.
Call David W. Klasing’s tax offices today
If you are concerned about an IRS investigation in 2021 you should seek the help of the professionals at the tax offices of. take advantage of David W. Klasing. We’ll work hard to make sure you comply or comply with regulations so you can avoid civil or criminal tax fraud. Call our offices today at (800) 681-1295 to schedule a consultation or appointment online here.
The full version of this article can be found here:
Public contact: Dave Klasing Esq. MS Tax CPA, [email protected]
SOURCE Tax Firms of David W. Klasing, PC
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