Earlier this year, we reported that the Internal Revenue Service (IRS) was sending warning letters to micro-captive insurance companies and their clients. On April 9, the IRS issued a News Release that underscores its intent to target taxpayers who participate in abusive micro-captive insurance arrangements in 2021. New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains:

The Internal Revenue Service (IRS) recently announced a safe harbor for certain Paycheck Protection Program (PPP) loan recipients. The safe harbor allows eligible loan recipients to claim deductions that they failed to claim in 2020. As New Jersey tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, explains, small businesses must meet certain requirements in order to claim safe harbor protection; and, when claiming additional deductions under the safe harbor, they must be careful to ensure that they are otherwise in full compliance with the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Tax Relief Act of 2020, and other pertinent federal tax laws.

For U.S. taxpayers who fail to disclose their offshore accounts to the IRS, streamlined filing and voluntary disclosure provide two potential options for coming into compliance. However, both of these options are very different, and taxpayers must choose wisely when deciding how to address past filing deficiencies. Here, New Jersey FATCA attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, explains the key differences between these two options for remedying delinquent foreign financial asset disclosures:

It’s that time of year again when cryptocurrency investors need to review their transaction histories so that they can prepare their tax returns. While the IRS has extended Tax Day to May 17, 2021, for individuals, that date is just over the horizon, and investors need to make sure they have all of the information they need in order to accurately file their returns on time. Are you a cryptocurrency investor? Does your company use cryptocurrency to transact business? If so, here are five important facts from New Jersey tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

When you file your 2020 tax returns, will you be meeting your obligations for yet another year? Or, will you be exposing yourself to the risk of an Internal Revenue Service (IRS) audit or investigation? Oversights and other mistakes can lead to IRS scrutiny—especially when these mistakes involve the IRS’s current enforcement priorities.