Category Archives: criminal tax law

On February 20, 2025 we posted BOI is Back With a New March 21, 2025 Deadline! where we discussed that with the February 18, 2025, decision by the U.S. District Court for the Eastern District of Texas in Smith, et al. v. U.S. Department of the Treasury, et al., 6:24-cv-00336 (E.D. Tex.), beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act (CTA) are once again back in effect.

Now on March 2, 2025, the U.S. Treasury Department announced a significant change regarding the enforcement of the Corporate Transparency Act (CTA). 

The Department Declared That It Would Suspend
Enforcement Of The CTA And The Associated
Beneficial Ownership Information (BOI) Reporting Requirements For Domestic Companies And U.S. Citizens.

Key points of this announcement include:

• Suspension of penalties: The Treasury will not issue fines, penalties, or take enforcement actions against companies that fail to file or update BOI reports under the current deadlines.

• Narrowing scope: The Treasury is preparing a proposed rulemaking to limit the CTA's application to foreign reporting companies only.

• Upcoming rule changes: By March 21, 2025, the Financial Crimes Enforcement Network (FinCEN) intends to issue an interim final rule extending BOI reporting deadlines.

• Public comment: FinCEN plans to solicit public input on potential revisions to existing BOI reporting requirements.

This decision effectively pauses the CTA's implementation for domestic entities, which was originally designed to combat money laundering, terrorist financing, and other illicit activities. The move has been welcomed by some as reducing regulatory burdens on businesses, particularly small enterprises. 

“This is a victory for common sense,” said U.S. Secretary of the Treasury Scott Bessent.  “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”

However, critics argue that this change could potentially weaken efforts to combat financial crimes and maintain corporate transparency.

It's important to note that while the enforcement is suspended, the Treasury Department is working on new regulations that will likely bring significant changes to the existing reporting regime.  

Need Help Filing Your BOI Report?

     Contact the Tax Lawyers at

Marini & Associates, P.A. 

Read more at: Tax Times blog

 On July 16, 2020 we posted IRS Identifies Debt Resolution Companies as Scams on 2020 Dirty Dozen List!, where we discussed that the IRS 2020 "Dirty Dozen" list of tax scams for 2020 included Offer in Compromise Mills and advises Americans to be vigilant to these threats.

Now five years later in IR-2025-26, the IRS 2025 "Dirty Dozen" list of tax scams STILL includes Offer in Compromise Mills!

The Agency's Rejection Rate is Roughly 67% .

Individual taxpayers can use the free online Offer in Compromise Pre-Qualifier tool to see if they qualify. The simple tool allows taxpayers to confirm eligibility and provides an estimated offer amount. 

Taxpayers can apply for an OIC without third-party representation; but the IRS reminds taxpayers that if they need help, they should be cautious about whom they hire.

Have a Real Tax Problem?

Contact REAL Tax Attorneys!

at Marini & Associates, P.A.   

for a FREE Tax Consultation 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

Receiving notice of an impending Florida sales tax audit can be daunting, but understanding the process and taking the right steps can help you navigate it successfully. Surviving a Florida sales tax audit requires careful preparation and professional assistance. Here's a comprehensive guide to help you navigate the process:

Understanding the Audit Process

A Florida sales tax audit is typically triggered when a business's exempt sales ratio is out of line with industry norms, or through random selection. The Florida Department of Revenue (DOR) will investigate potential violations of Florida tax law, focusing on whether your business failed to remit all collected sales tax.

Notification and Preparation

The DOR initiates the audit process by issuing form DR-840, a Notice of Intent to Audit Books and Records. This notice will indicate that the audit will commence 0 days from the issue date, although it cannot begin earlier than 60 days after the notice date.

Key steps upon receiving the notice:

1. Hire an experienced tax professional immediately.
2. Use the 60-day "homework" period to prepare for the audit.
3. Organize all relevant documentation to present a clear picture of your business's tax compliance.

Types of Audits

The DOR conducts two types of sales tax audits:

1. Desk Audit: Conducted at a DOR office.
2. Field Audit: Performed at your place of business.

What to Expect During the Audit

The auditor will compare your annual federal tax return to sales and use tax returns to identify any discrepancies. They will examine:

• Fixed assets and commercial rent (subject to sales tax)
• Sample months to test exempt sales
• Federal income tax returns
• Florida tax returns  
• General ledgers and journals
• Depreciation  schedules 
• Property records 
• Cash receipt and disbursement journals
• Purchase and sales journals
• Sales tax exemption or resale certificates 
• Documentation to verify amounts entered on tax returns

Post-Audit Process

After reviewing all records, the auditor will issue a DR-5 (Notice of Intent to Make Audit Changes). You have 0 days to request a review of the results.

 

Tips for Surviving the Audit

1. Hire a professional: An experienced tax professional can help navigate the complex audit process and minimize potential assessments.
2. Be prepared: Organize all relevant documentation before the audit begins.
3. Understand your rights: The DOR cannot force you to begin the process or turn over information in less than 60 days.
4. Be cautious: While auditors may seem helpful, remember they are not your friends. Avoid inviting them to your workplace unnecessarily or giving them access to electronic records beyond the scope of the audit.
5. Know the timeline: The DOR can typically audit a business for a three-year period, or longer if you didn't file returns or filed substantially incorrect returns.

Remember, a Florida sales tax audit can range from a minor inconvenience to a serious issue with potentially grave consequences. With proper preparation and professional guidance, you can navigate this process successfully and minimize any potential negative outcomes.

Have a  Florida Sales Tax Problem?

Sales Tax Problems Require

an Experienced Sales Tax Attorney

Contact the Tax Lawyers at

Marini & Associates, P.A.

 for a FREE Tax Consultation Contact US at

www.TaxAid.com or www.OVDPLaw.com

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

James P. Sweeney Esq - State and Local tax counsel

Mr. Sweeney is a Tax Attorney with 40 years of experience in the areas of Tax Law, both Federal & State, including Representation before the IRS and various State Taxing Agencies.

Mr. Sweeney is an accomplished attorney with a distinguished career that includes a rich background in tax law and a remarkable tenure at Arthur Andersen's State and Local Tax Practice, including serving as the Northeast Region Practice Leader and a National Office subject matter expert, where he shared a wealth of experience and expertise in State and Local Tax law.

 

 

 

Read more at: Tax Times blog

The IRS changed its internal rules regarding digital signatures on documents during the COVID-19 pandemic. The Internal Revenue Manual (IRM) was temporarily updated so that IRS employees could accept digital signatures and signature images instead of handwritten signatures on certain tax forms and in compliance interactions with tax professionals.

IRM Exhibit 10.10.1-1 contains a list of signature types that can be used for specific forms.

The IRS has also extended, to October 31, 2025, its Interim Guidance allowing tax practitioners to use encrypted email when working with IRS personnel to address compliance or resolve issues in ongoing or follow-up interactions.

The forms to which this flexibility applies are listed below. These forms must be signed and postmarked on August 28, 2020, or later. Electronic and digital signatures appear in many forms when printed and may be created by many different technologies. No specific technology is required for these forms.

• Form 11-C, Occupational Tax and Registration Return for Wagering.

• Form 637, Application for Registration (For Certain Excise Tax Activities).

• Form 706, U.S. Estate Tax Return.

• Form 706-A, United States Additional Estate Tax Return.

• Form 706-GS (D), Generation-Skipping Transfer Tax Return for Distributions.

• Form 706-GS (D-1), Notification of Distribution from a Generation-Skipping Trust.

• Form 706-GS (T), Generation-Skipping Transfer Tax Return for Terminations.

• Form 706-QDT, U.S. Estate Tax Return for Qualified Domestic Trusts.

• Form 706 SCHEDULE R-1, Generation-Skipping Transfer Tax.

• Form 706-NA, U.S. Estate (and Generation-Skipping Transfer) Tax Return.

• Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return.

• Form 730, Monthly Tax Return for Wagers.

• Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.

• Form 1066, U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.

• Form 1120-C, U.S. Income Tax Return for Cooperative Associations.

• Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation.

• Form 1120-H, U.S. Income Tax Return for Homeowners Associations.

• Form 1120-IC DISC, Interest Charge Domestic International Sales – Corporation Return.

• Form 1120-L, U.S. Life Insurance Company Income Tax Return.

• Form 1120-ND, Return for Nuclear Decommissioning Funds and Certain Related Persons.

• Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return.

• Form 1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts.

• Form 1120-RIC, U.S. Income Tax Return for Regulated Investment Companies.

• Form 1120-SF, U.S. Income Tax Return for Settlement Funds (Under Section 468B).

• Form 1127, Application for Extension of Time for Payment of Tax Due to Undue Hardship.

• Form 1128, Application to Adopt, Change or Retain a Tax Year.

• Form 2678, Employer/Payer Appointment of Agent.

• Form 3115, Application for Change in Accounting Method.

• Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts.

• Form 3520-A, Annual Return of Foreign Trust with a U.S. Owner.

• Form 4421, Declaration – Executor’s Commissions and Attorney’s Fees.

• Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes.

• Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues.

• Form 8038-G, Information Return for Government Purpose Tax-Exempt Bond Issues.

• Form 8038-GC; Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales.

• Form 8283, Noncash Charitable Contributions.

• Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms.

• Form 8802, Application for United States Residency Certification.

• Form 8832, Entity Classification Election.

• Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent.

• Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement.

• Elections made pursuant to Internal Revenue Code Section 83(b).

 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