The IRS and its Security Summit partners warned tax professionals this week about a new IRS impersonation scam campaign spreading nationally on email. The new scam illustrates the growing sophistication of cybercriminal organizations. The scam now relies on dozens of compromised websites and web addresses that pose as IRS.gov, making it a challenge to…
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A Taxpayer's Limited Education Not Sufficient to Prove Reasonable Cause for Failure to File FBAR
A district court has held in Ott, DC MI 8/7/2019, that the failure-to-file FBAR penalty applied to a taxpayer because she failed to establish reasonable cause for her failure to file. Pursuant to 31 USC § 5314(a), every U.S. person that has a financial interest in, or signature or other authority over, a financial account, or accounts,…
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DC Magistrate Ruled That Willful FBAR Regulations are Invalid
On August 7, 2018 we posted Court of Claims Rejects Colliot & Wadhan: Willful FBAR Penalty Not Limited to $100,000, where we discussed that July 31, 2018 in Norman v. United States, Ct. Fed. Cl. Dkt 15-872, the Court held that the taxpayer Norman was liable for the FBAR willful penalty and this Court rejected the…
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Student Faces $400K Crypto Tax Liability on Holdings Worth $125K
According to the Toshi Times a California-based college student who turned $5,000 into $880,000 through trading cryptocurrency is now facing $400,000 in taxes. The crux? Following this year’s market-downturn, his current portfolio is only valued at $125,000. More specifically, this student recently took to Reddit to share his story and ask the cryptocurrency community for…
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