For U.S. taxpayers who requested an extension back in May, the October 15, 2021 extended filing deadline is fast approaching. But, what if you still aren’t ready to file your returns? Or, what if you can’t afford to pay what you owe the IRS for the 2020 tax year? New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

The federal government is continuing to crack down on individuals and businesses suspected of defrauding (and attempting to defraud) the government’s COVID-19 relief programs. The Internal Revenue Service’s Criminal Investigation Division (IRS CI) has been particularly active, announcing a dozen such cases in August and September alone.

The Internal Revenue Service (IRS) relies on information from various sources to examine taxpayer compliance. This includes information obtained from banks, brokers, and cryptocurrency exchanges. If your bank, broker or exchange has shared information about your transaction history with the IRS—and if this information is inconsistent with the information you reported on your federal tax returns—this could lead to a tax audit or investigation. Learn more from New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.

Congress enacted several laws in 2020 in order to provide financial relief to individuals and businesses impacted by the COVID-19 pandemic, and it has continued to provide additional forms of relief in 2021. The Internal Revenue Service (IRS) and other agencies have taken various steps to help mitigate qualifying individuals’ and businesses’ financial strain as well. Many of the federal government’s COVID-19 relief programs have been impacted by widespread fraud, and IRS Criminal Investigation (IRS CI) is among several agencies that are actively targeting those suspected of pandemic-related crimes.

Cryptocurrency investors are facing enhanced scrutiny from the Internal Revenue Service (IRS) in 2021. As a result, it is more important than ever for investors to ensure that they are complying with the Internal Revenue Code and other pertinent federal laws. We have published several resources for cryptocurrency investors prepared by New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group. If you have questions about federal tax compliance related to cryptocurrency, these resources are your starting point for what you need to know: