The Contours of a Federal Investigation

Whether you’re being investigated for a state misdemeanor or a potential federal felony, the process is likely to invoke intense stress for you and your family. The process for a federal criminal investigation is somewhat different than one for a state crime; notably, federal investigations involve grand juries and indictments. We explain more below.  Witness, Subject, and Target The three main players involved Read More

Biden Administration Eyeing Changes to Tax Policy

Though President Biden and his administration enjoy razor-thin advantages in Congress, the new crew in D.C. has not been shy about talking about new policy proposals that touch on many hot-button issues. One of these areas is tax policy; this was one of Biden’s central themes throughout his campaign, and his administration has been giving hints about specific policy changes Biden would approve.  Throughout the Read More

Are You a Robinhood Trader? Here’s What You Should Know About Taxes

Take a global pandemic that forces millions of millennials to stay home with nothing but the internet and boredom to guide their behavior, and you get situations like the recent snafu with Robinhood and GameStop. Whatever your position on Robinhood’s decision to limit trading of certain securities and the ensuing outcry, the reality is that hundreds of thousands of U.S. taxpayers will need to get acquainted with Form Read More

Tax Clarification for Cryptocurrency Holders

The IRS received attention when it sent letters to thousands of taxpayers in August 2020 reminding them of cryptocurrency reporting requirements. That batch of letters was just one clue that the IRS is ramping up interest in bitcoin and other virtual currency. Sure enough, the first page of the updated 2020 Form 1040, Individual Income Tax Return, includes a question about acquiring “any financial interest in any Read More

How the New Administration Could Shift Culture Around White-Collar Prosecutions

The COVID-19 pandemic ground much of 2020 to a halt, and that includes countless judicial venues that dispense hearings on civil and criminal matters. Even before coronavirus hit the Pacific Coast, though, prosecutions for white-collar crime were at historic lows. At the conclusion of 2020, the number of white-collar prosecutions totaled around half of the 2011 peak for the Obama administration. With yet another new Read More

IRS Appeals: The Small Case Protest

In the interests of due process, the Internal Revenue Service has a procedure for taxpayers to protest certain tax matters. This option is often triggered by taxpayers to protest the findings of a tax examiner or IRS audit. After you have received some type of notice from the IRS regarding your tax situation, you may follow the instructions on the form to request a conference with the IRS Office of Appeals. Read More

What Does the IRS Believe is ‘Reasonable Cause’?

Though taxpayers, in theory, voluntarily file and pay federal income tax returns to the Internal Revenue Service each year, failure to timely and accurately volunteer your income tax returns and payment to the IRS means you will be facing monetary penalties. The agency commonly assesses penalties against taxpayers for failure to file, failure to pay, failure to make estimated quarterly payments, negligence, and other Read More

Small Businesses Should Expect a Ramp-Up in Audits in 2021

At a time when a large number of small businesses are already experiencing difficult economic circumstances, representatives from the Internal Revenue Service have signaled that audits of partnerships and pass-through entities will increase in 2021. More granularly, the IRS has hired 50 new specialized auditors who are expected to be installed sometime in February 2021.  If you currently own or operate a small Read More

Preparing for a Possible PPP Audit

The low-interest, forgivable loans available through the Paycheck Protection Program have been lifelines for millions of small and mid-sized businesses across the U.S. The statistics underscore that statement; more than five million PPP loans have been distributed since the program was established in late March 2020. The original funding quickly dried up, leading to multiple rounds of funding.  There’s no denying, Read More

Recent Actions on Telemedicine Fraud Provide a Glimpse into the Future

The COVID-19 pandemic has accelerated countless big-picture trends across the world. One important area that showed significant change is the telemedicine universe. To illustrate the explosive growth in telemedicine visits, consider that, by April 2020, around 44 percent of doctor’s visits by Medicare recipients were conducted virtually. Just two months earlier, that figure hovered around 0.1 percent.  In Read More