Kraken, the well-known cryptocurrency exchange, has been ordered by a federal court to disclose customers’ personal information and transaction data to the Internal Revenue Service (IRS). The order comes after Kraken’s prolonged fight to thwart the IRS' “John Doe” summons and after several other cryptocurrency platforms have already been forced (or voluntarily chosen) to comply with similar requests.

Businesses that improperly claimed the Employee Retention Credit (ERC) are facing scrutiny from the Internal Revenue Service (IRS). To help businesses that unknowingly worked with fraudulent promoters and scam artists to submit improper ERC claims, the IRS has announced a process for withdrawing invalid claims before they trigger an audit or investigation. If you think your business may need to file for withdrawal, you should consult with a New Jersey tax lawyer promptly.  

Earlier this year, the IRS announced that it was devoting additional resources to scrutinizing businesses’ Employee Retention Credit (ERC) claims. On September 14, 2023, it went a step further, announcing that it would stop processing new ERC claims as it focuses on uncovering and prosecuting ERC fraud.

The Internal Revenue Service (IRS) and the U.S. Department of Justice (DOJ) are targeting taxpayers and promoters for abusive trust schemes. While noting that promoters often push these schemes on wealthy and unsuspecting taxpayers, the IRS makes clear that taxpayers remain personally responsible for their returns, and it is working with the DOJ to prosecute all individuals who are involved in using abusive trust schemes to evade federal tax liability. As a result, many taxpayers and promoters are finding themselves in need of an experienced New Jersey tax attorney.

Allegations of COVID-19 pandemic fraud can expose companies and individuals to significant penalties. This includes allegations of fraud under the Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) program. With hundreds of billions of dollars potentially lost to fraud during the pandemic, federal authorities are now working to recoup taxpayers’ losses and hold bad actors accountable.