As 2020’s revised Tax Day approaches, New Jersey taxpayers who bought, sold or used cryptocurrency in 2019 are likely to find that complying with their income reporting and tax payment obligations presents a challenge. Even though the Internal Revenue Service (IRS) has acknowledged that its guidance on cryptocurrency reporting has been less than clear, it has also clearly signaled its intent to target individual and corporate taxpayers that fail to accurately report and pay what they owe.

The IRS’s recently announced the formation of a new Fraud Enforcement Office housed within its Small Business/Self Employed Division. This new office will be specifically targeting tax fraud perpetrated by small businesses, and the Small Business/Self Employed Division’s Commissioner has stated that the Division will be enhancing its fraud enforcement efforts in 2020.

The Internal Revenue Service (IRS) has extended the federal income tax deadline for all taxpayers from April 15 to July 15. This applies to filings and payment, and it is an automatic extension so taxpayers do not have to file anything on April 15.

The Internal Revenue Service (IRS) is cracking down on individuals who fail to report cryptocurrency transactions and who fail to pay income taxes triggered by these transactions. In late 2019, the IRS issued updated guidance on the federal tax treatment of cryptocurrency (or “virtual currency”); and, at the same time, it warned that it is, “actively addressing potential non-compliance in this area through a variety of efforts, ranging from taxpayer education to audits to criminal investigations.” If you are concerned that you may be behind on your federal tax obligations, you should speak with a New Jersey tax attorney promptly.

Although federal tax crimes are serious matters, state tax authorities can prosecute state tax crimes aggressively as well. The state of New Jersey is no exception.  Convictions for tax fraud and tax evasion in New Jersey can have dire consequences. When a taxpayer is accused of such conduct, a New Jersey tax attorney is essential to defend the taxpayer’s rights.