2022 Year in Review: What Are Our Lessons Learned for 2023?
Posted in Offshore Account Update on December 30, 2022 | Share
The New Year is here. While this means it is time for New Year’s Resolutions and a fresh outlook on life, it also means that it is time to start thinking about tax season. Here is a look back at some of our top insights for U.S. taxpayers from 2022:
10 of Our Top Federal Tax Law Articles from 2022 (with Insights for 2023)
1. The IRS’ Strategic Plan FY2022-2026
In mid-2022 the IRS published a new five-year plan with a specific focus on reducing the federal tax gap (the difference between what taxpayers owe and what they pay). The IRS’ Strategic Plan FY2022-2026 provides some important insights for taxpayers who want to avoid scrutiny going forward. Learn more:
The IRS Has a New Five-Year Plan—Here’s What Taxpayers Need to Know
2. IRS Plans to Increase Federal Income Tax Enforcement
On the heels of releasing its new strategic plan, the IRS issued a News Release stating its intent to ramp up enforcement in the years to come. To facilitate its efforts, the IRS will be hiring additional personnel and placing additional emphasis on automated reviews of taxpayers’ returns. Learn more:
Citing Increased “Tax Gap,” IRS Plans More Robust Enforcement Going Forward
3. Was Your Business Eligible for the Employee Retention Credit?
Just like the Paycheck Protection Program (PPP), lots of businesses took advantage of the IRS’ pandemic-related Employee Retention Credit. Also, like the PPP, the IRS has identified the Employee Retention Credit as a frequent source of fraud. Now, it is working to hold employers accountable. Learn more:
Employers that Claimed the IRS’ Employee Retention Credit Should Verify Compliance
4. Did You Miss the FBAR Deadline?
Each year, taxpayers who have offshore accounts receive an automatic extension to file their FBARs by October 15. And, each year, numerous taxpayers fail to file on time. Do you need to file a delinquent FBAR in 2023? Learn more:
What Should You Do if You Missed the October 15 FBAR Deadline?
5. Understanding the Penalties for FBAR Non-Compliance
Why is it important to file your FBARs on time? Simply put, the penalties for non-compliance are severe. They can even include criminal penalties in some cases. Learn more:
What Are the Penalties for Failure to File an FBAR (and How Can You Avoid Them)?
6. Is Your Giving Tuesday Donation Tax-Deductible?
If you made a donation on Giving Tuesday, you may have done so with the intent to claim the donation on your federal returns. But is your donation actually deductible? If it isn’t, you need to know. Learn more:
Is Your Giving Tuesday Donation Tax-Deductible?
7. Seeking Penalty Relief from the IRS
When U.S. taxpayers fail to file their returns or pay what they owe, interest and penalties can begin to accrue immediately—and they can add substantially to taxpayers’ total liability. While taxpayers can seek penalty relief (and interest abatement) in some cases, the opportunities are somewhat limited. Learn more:
When Can U.S. Taxpayers File for Penalty Relief with the IRS?
8. Through 10. The Tax Implications of Cryptocurrency
Finally, early in 2022, we published several articles on the tax implications of cryptocurrency. At the time, the focus was on making sure taxpayers accurately report their gains. But, as we start 2023, many investors are instead focused on ensuring that they get the maximum tax benefit from claiming their losses. Learn more:
Contact Thorn Law Group in Washington D.C.
If you need help dealing with the IRS in 2023, we invite you to get in touch. To request a confidential consultation with tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 202-349-4033, email ket@thornlawgroup.com or inquire online today.
