Dear IRS, My name is Jenny, and I’m one of millions of American citizens living abroad*. I met my Canadian-born husband Frank while in college in the U.S., and I returned with him to Canada so he could work in his family business. As you well know, as a U.S. citizen, I am required to […]

Eli Noff, Esq., Partner We’ve continued to report on the increasingly aggressive IRS posture towards uncovering tax evasion via cryptocurrency transactions.[1]Interestingly, we may now be seeing a trend in the courts indicating that the IRS will need to more carefully tailor summonses in cryptocurrency cases in order to survive the courts’ scrutiny of the allowed […]

Eli Noff, Esq.,Partner On July 25, 2019, in Dufresne v. Commissioner,[1]the Tax Court held that purported intrafamily loans between a son and his mother failed to withstand heightened scrutiny to qualify as bona fide loans. The decision emphasizes the need for careful record-keeping and convincing substantiating evidence. Without such documentation, the government is poised to […]

Eli Noff, Esq.,Partner On August 8, 2019, in Soltani-Amadi v. Commissioner,[1]the Tax Court determined that Taxpayer’s early distribution from her Internal Revenue Code (IRC) §401(k) retirement plan (401(k)) used for the purchase of her first home was includible in income and subject to the 10% early distribution penalty. This decision emphasizes the need for careful […]

Eli Noff, Esq.,Partner As we’ve previously reported, in Notice 2014-21,1the IRS considers virtual currency to be property rather than fiat money. The Notice, however, is silent as to whether virtual currency is reportable on Form 114, Report of Foreign Bank and Financial Accounts(FBAR). For purposes of the FBAR, all foreign financial accounts must be reported […]

Eli Noff, Esq.,Partner On August 26, 2019 the United States Department of Justice (DOJ) issued a press release reporting that a federal grand jury returned a superseding indictment charging Taxpayer with: (1) failing to file Reports of Foreign Bank and Financial Accounts (FBARs); (2) filing false individual income tax returns with the Internal Revenue Service […]

Leanne Broyles, Esq.,Senior Associate Resident estates and trusts are subject to Virginia state income tax on nearly all of their federal taxable income1. Effective July 1, 2019, recently enacted House Bill 2526 (HB2526) modifies the definition of a resident estate or trust for Virginia state income tax purposes2. HB2526 significantly impacts the tax treatment of […]

Eli Noff, Esq., Partner On September 6, 2019, the Internal Revenue Service (IRS) announced new relief procedures, “Relief Procedures for Certain Former Citizens,” allowing eligible, non-willful individuals, who relinquished their U.S. citizenship, to come into compliance with U.S. tax and filing obligations and obtain relief for back taxes.[1] The IRS has not yet provided a […]

Eli Noff, Esq., Partner Taxpayers must use FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) to report their foreign accounts if the aggregate value of the accounts exceeds $10,000 anytime during the calendar year.[1] Before 2004, non—willful FBAR violators were not subject to a penalty. However, for non—willful violations on or after […]

Carly Steren, Legal Intern Many taxpayers are surprised and alarmed to learn that Federal tax liens survive a bankruptcy discharge. In other words, the IRS can still enforce its lien and seize property, even though the underlying taxes were discharged. Perhaps even more alarming to taxpayers, is the fact that even retirement accounts are still […]