Monthly Archives: February 2023

According to Law360, The European Commission plans to establish a central register of crypto assets held in European Union member countries by 2026, according to the draft of a new law designed to curb tax evasion from use of the technology, seen by Law360 on Wednesday December 1, 2022.

The eighth amendment to the Directive on Administrative Cooperation in Tax Matters, known as DAC8, is set to be published Dec. 7 and would require tax authorities across Europe to share information with each other about citizens' crypto assets. The commission, the EU's executive branch, would also have to establish a central register for information to be recorded and shared, to be made available to the competent authorities of all member countries.

The law would require crypto exchanges and digital wallet providers to give tax authorities information on their customers' holdings. This would be carried out by extending the scope of the automatic exchange of information requirements to crypto-asset service providers, according to the draft.

An explanatory memorandum attached to the legislation said tax authorities currently don't have enough information to monitor crypto assets and the money generated from them.

"There Is a Lack of Information Available to Tax Administrations regarding Crypto Assets, While the Crypto Assets Market Has Gained in Importance over the Last Few Years," the draft law said.

Have a Virtual Currency Tax Problem?

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Contact the Tax Lawyers at

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or Toll Free at 888-8TaxAid (888 882-9243). 

 

 

Read more at: Tax Times blog

According to Law360, Tax practitioners must tread carefully regarding communications that contain both legal and nonlegal advice following the U.S. Supreme Court's sudden dismissal of a case that asked the justices to decide whether such dual-purpose communications are privileged.

The high court unexpectedly dismissed the dispute, known as In Re Grand Jury, by issuing a rare one-sentence decision last month just two weeks after the justices heard oral arguments, saying the petition in the case was improvidently granted.

The High Court's Dismissal Means There Is Still A
Split In The Circuit Courts Over How To Determine
Whether Dual-Purpose Communications Are Privileged.

Practitioners should adhere to a strict interpretation of privilege set by the Ninth Circuit in In Re Grand Jury that said in an amended opinion last year that dual-purpose communications that contained tax preparation advice were not privileged because the primary purpose of the discussions was not legal advice.

Though the Ninth Circuit's "primary purpose" standard is binding only in the states under its jurisdiction, attorneys said they would recommend taking additional measures to ensure certain communications remain confidential even outside those states.

The In re Grand Jury case involved an unnamed law firm's bid to shield certain international tax communications with a client from disclosure to a grand jury. After the Ninth Circuit ordered the firm to turn over those documents two years ago, the firm petitioned the Supreme Court to review its challenge. The justices agreed to review it in October.

At oral arguments on January 9, 2023, the justices strained to understand if there was even a difference between the primary purpose and significant purpose standards based on the firm's and government's positions. 

In The Wake Of The In Re Grand Jury Case,
The First Step Is, If Possible,
Is To Avoid Mixing
The Reasons For Legal And Nonlegal Communications 

Susan Combs, tax controversy and litigation partner at Holland & Hart LLP, suggested using labels and stating the intended purpose of the document if an attorney has concerns about the potential lack of clarity on the purpose of the communication. 

If a challenge is brought as to whether a communication is privileged or not, she said it likely won't come for months or years, when documents are sought in litigation or by a subpoena. If that happens, such indicia can be very helpful to a judge who must decide whether a communication's primary purpose was to provide legal advice, she said.

Many practitioners have struggled for years on how to identify what is legal advice and tax preparation assistance in dual-purpose communications due to the uneven treatment in the federal courts on what is considered privileged tax information. 

Some have held that attorney-client privilege does not apply to communications that deal with a client's tax return preparation, while it does for tax controversy and tax planning issues.

In particularly sensitive cases, such as criminal cases like In Re Grand Jury, Hill said, "it would be prudent to consider not having the same lawyer advise on the soft spots of the return and prepare the return."

Have an IRS Tax Problem?

 Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243) 

Read more at: Tax Times blog

According to the DoJ and court documents, from approximately 2008 through 2017, Matthew D. Adams, of Grosse Point Park, owned a property management company, MDA Property Services. Adams sold illegal narcotics to the president of Company A, who paid for the drugs using Company A’s funds. The buyer paid Adams with checks made out to MDA Property Services, and other entities Adams owned, so that they would appear to be legitimate payments for purported services rendered by Adams. 

 

Adams Deposited Some Of The Checks Into His
Personal And Business Bank Accounts, And
Cashed The Remainder, Totaling Approximately
$5.3 Million, At A Local Liquor Store.

 

 

For tax years 2013 through 2016, Adams caused his tax return preparer to prepare false business and individual tax returns by providing the return preparer solely business bank records, knowing that they did not reflect all of the illicit proceeds. In 2017 and 2018, during an audit of Adams’s business and individual tax returns, Adams falsely told the IRS that all income his business received was deposited into business bank accounts and that 90% percent of the funds MDA Property Services received from Company A through the buyer was for legitimate work, whereas Adams knew only three percent was, in fact, business-related.

During the course of his criminal conduct, Adams withdrew more than $1 million in cash of his illegal narcotics proceeds from business bank accounts and also used funds to acquire real estate.  In addition, he spent over $1.25 million on private flights, golfing, jewelry, gambling, court-ordered child support, hotel stays and to purchase a firearm. Adams also bought a Cadillac Escalade, a Hummer and multiple classic cars.

Adams is scheduled to be sentenced on June 21, 2023 and faces a maximum penalty of three (3) years in prison for obstructing the IRS and ten (10) years in prison for money laundering. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

 Thinking Not Paying Your Taxes?

You Better Thank Again, if You Like Your Freedom!

  Contact the Tax Lawyers at
Marini & Associates, P.A. 

for a FREE Tax HELP Contact Us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888-8TaxAid (888-882-9243) 

Read more at: Tax Times blog

In IR-2023-21, dated Feb. 8, 2023, the Internal Revenue Service’s Office of Chief Counsel announced plans to hire additional attorneys to assist the agency in enhancing the taxpayer experience and addressing high-end, complex noncompliance. 

“We’re Immediately Seeking Motivated Attorneys to Accomplish this Highly Challenging Work,”
said William Paul, Principal Deputy Chief Counsel/Deputy Chief Counsel (Technical). 

“We invite you to consider joining our team if you’re an attorney who’s interested in litigation, giving legal advice on complex tax matters or working on published tax guidance to assist the public in understanding the tax laws.” 

Chief Counsel’s litigation positions offer a broad range of experiences that frequently involve complex issues with a national scope. Chief Counsel attorneys work to publish guidance to promote taxpayer understanding of the tax laws. And Chief Counsel’s litigators and guidance/advisory teams work together in an engaging and dynamic environment. 

 “Our jobs can help you build your career in all of these areas,” said Drita Tonuzi, Deputy Chief Counsel (Operations). “And we work hard to provide new attorneys with support and assistance in these efforts: our training and mentoring programs are some of the best.” 

Some of the numerous advantages to joining IRS Chief Counsel include workplace flexibility, a collegial environment and an important mission to serve America’s taxpayers fairly and with integrity by providing correct and impartial interpretation of the Internal Revenue laws and provide the highest quality legal advice and representation for the IRS. 

Attorney positions are available in dozens of cities around the country. The full list of job openings is always easily accessible by searching for IRS Chief Counsel on USAJOBS.gov. 

Have an IRS Tax Problem?

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Read more at: Tax Times blog