The Internal Revenue Service (IRS) recently released its 2024 Financial Report. While the 164-page report is long and dense, it provides some important insights for U.S. taxpayers heading into 2025. Here, New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, shares his five key takeaways.

Late last year, the Internal Revenue Service (IRS) announced plans to create a new “work unit” focused on pass-through entity enforcement. On October 22, 2024, the IRS announced that its new pass-through field operations unit “has officially started work.”

If you own offshore accounts that exceed the reporting thresholds under the Bank Secrecy Act (BSA) or Foreign Account Tax Compliance Act (FATCA), you are required to report your offshore accounts to the Internal Revenue Service (IRS) or the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), or both. But what happens if you don’t? Can the IRS see your offshore accounts if you don’t report them? New Jersey international tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains.

With the IRS ramping up its enforcement efforts after receiving increased funding under the Inflation Reduction Act, now is the time for U.S. taxpayers to make sure they are up to date on their filing and payment obligations. For those who are not up to date, avoiding an audit or investigation will most likely involve making some form of IRS disclosure. Taxpayers who work with an experienced New Jersey tax attorney to make proactive disclosures can avoid facing IRS scrutiny—and, in doing so, they can mitigate their liability exposure.

While the Internal Revenue Service (IRS) has several enforcement priorities, it has recently made clear that one of its top priorities is ensuring compliance among high-income and high-wealth taxpayers. With additional funding under the Inflation Reduction Act, the IRS is able to pursue enforcement initiatives that it was unable to pursue previously, and these initiatives have led to the recovery of $1.3 billion from these taxpayers in the 12 months alone. Learn more from New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.