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Category Archives: criminal tax law

Bill to Nullify Expanded IRS Crypto Broker Rule Signed by Trump


On August 12, 2024 we posted IRS Releases Final Digital Asset Regs & New Draft of Form 1099-DA where we discussed that in IR-2024-178 dated June 28, 2024 The U.S. Department of the Treasury and the Internal Revenue Service issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These reporting requirements will help taxpayers to file accurate tax returns with respect to digital asset transactions, which are already subject to tax under current law.

Then on August 12, 2024 we posted TIGTA Releases Report Regarding Virtual Currency Tax Compliance Enforcement and How it Can Be Improved where we discussed that the Treasury Inspector General for Tax Administration (TIGTA) report, Virtual currency (or digital assets) has grown into a trillion-dollar industry that's been challenging for the IRS to enforce for tax compliance and that during Fiscal Years 2018 to 2023, IRS CI investigated 390 cases involving virtual currency/digital assets of which 224 were recommended for prosecution.

The IRS had updated its crypto tax reporting rule in December 2024, during the final weeks of the Biden administration, to clarify that decentralized finance (DeFi) platforms would also fall under these guidelines

Well now you can forget all that, as President Donald Trump signed into law a bill to overturn a revised rule from the Internal Revenue Service that expanded the definition of a broker to include decentralized cryptocurrency exchanges on April 10, 2025, according to a statement from the White House.

In March 2025 The Congressional Review Act Was
Invoked By Both Chambers Of Congress  To Nullify
The IRS Revision, With Bipartisan Support.

The cryptocurrency industry strongly opposed the rule, arguing that DeFi exchanges, which operate without intermediaries and allow direct transactions on blockchain networks, could not comply due to their lack of user visibility. 

Unlike centralized exchanges such as Coinbase and Kraken, DeFi platforms do not collect detailed user information, making it challenging to meet IRS reporting requirements.

Trump's decision aligns with his campaign promise to support the cryptocurrency industry. He had pledged to be a "crypto president" and actively courted support from the sector during his campaign. Since taking office, Trump has taken several steps to promote digital assets, including establishing a cryptocurrency working group and signing an executive order to create a federal bitcoin stockpile.

Have an IRS Tax Problem?

    
Did You Omit Income From Digital Assets?

 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

SCOTUS Stays Federal Worker Rehire Order Resulting in Them Being Fired Again?

On March 25 we posted The IRS ‘Reinstated’ 7,000 Workers, But They Are Not Returning To Work? discussing that the federal government will pay about 7,000 IRS probationary employees, who were laid off less than a month ago, not to work while lawsuits over layoffs wind their way through the court system. The email sent to probationary workers also advised them “not [to] report to duty or perform any work until receiving further guidance.”

Now The Supreme Court issued a stay on April 8, 2025, halting a lower court's preliminary injunction that required federal agencies to reinstate terminated probationary employees and barred the Office of Personnel Management (OPM) from issuing workforce reduction guidance. The injunction, issued by U.S. District Judge William H. Alsup on March 13, was challenged by OPM in a case involving labor unions and nonprofit organizations. The stay will remain in effect pending the outcome of the appeal in the 9th Circuit or a Supreme Court review, if certiorari is granted.

"The District Court's Injunction Was Based Solely On The Allegations Of The Nine Non-Profit-Organization Plaintiffs
In This Case," The Court Explained. "But Under Established Law, Those Allegations Are Presently Insufficient
To Support The Organizations' Standing."

In its order, the Supreme Court stated that the district court's injunction relied solely on allegations from nine nonprofit plaintiffs, which it deemed insufficient to establish standing under established legal standards. The Court explained that the plaintiffs must identify specific members harmed or demonstrate that their entire membership suffered a concrete injury to meet Article III requirements.

At an April 9 hearing, Judge Alsup questioned whether reinstated employees could be terminated again and how long they would remain protected under the injunction. He also asked whether their employment could still be linked to OPM’s allegedly unlawful February directive. The government argued that the nonprofits had failed to provide evidence of direct harm to their members.

The judge criticized both parties for delays in providing a list of affected employees and expressed little interest in assigning blame. He emphasized the need for compliance with procedural requirements under the Administrative Procedure Act.

Alsup gave both sides until 5 p.m. Friday to submit the list of terminated employees, which is critical to determining whether the plaintiffs have standing and whether further relief is warranted. The case remains under review as the appellate process continues.

Meanwhile, other job losses loom at the IRS. The Trump administration wants to cut the IRS workforce by 20% by May 15, including those who have already left or were fired.

Officials at the Elon Musk-led group advising the administration want Acting IRS Commissioner to eliminate 18,141 jobs across the agency. This includes the roughly 12,000 employees terminated as part of new-hire layoffs.

 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

Florida Limited Liability Company Owners Maybe Liable for Sales & Business Taxes

Florida law generally provides robust liability protection for LLC members through the Florida Revised Limited Liability Company Act, which states that debts or liabilities of an LLC are solely those of the company. However, this protection is not absolute, as Florida recognizes exceptions under Federal Tax and Florida Sales and Use Tax laws. Specifically, section 213.29, Florida Statutes, imposes personal liability on individuals responsible for collecting and remitting sales tax if they willfully fail to do so. This provision applies to officers or directors with administrative control over tax compliance and creates significant exposure for LLC members.

The Florida Department of Revenue (FDOR) treats sales tax as state funds at the time of collection, viewing businesses as custodians of these funds rather than owners. Failure to remit collected sales tax can pierce the liability shield typically protecting LLC members from business debts. FDOR has pursued collection actions against individual LLC members, including liens on personal bank accounts, and in more egregious cases where taxes were collected but not remitted, has made criminal referrals to the State Attorney.

To establish personal liability, FDOR must prove "willful" failure to collect or remit taxes. This determination often involves questioning former officers or managers about their roles in tax compliance and financial decision-making. Individuals deemed "responsible persons" with authority over financial priorities face the greatest risk. Personal liability is asserted through a Notice of Assessment Personal Liability (NOAPL), which gives individuals 20 days to file an informal protest. Failure to respond promptly can result in severe financial consequences, including penalties equal to twice the unpaid tax amount.

The concept underlying this liability mirrors the "trust fund" tax approach seen in other jurisdictions, where businesses collecting sales tax are considered trustees of government funds. A notable 2022 New York Administrative Law Judge decision illustrates how strict liability could apply even without direct involvement in daily operations. In that case, an LLC member's signature on documents and status as a member sufficed for personal liability. While not binding in Florida, this reasoning could influence similar cases under Florida's statutory framework.

Given these risks, LLC members with signature authority or control over financial decisions should prioritize sales tax compliance to avoid personal liability. The FDOR may assess penalties and initiate collection actions against individuals who fail to remit taxes properly. Prompt response to any notices is critical because defaulting on a NOAPL makes reopening protest rights nearly impossible.

Marini & Associates’ tax attorneys offer assistance in mitigating these risks through voluntary disclosure agreements, audit defense, administrative appeals, and negotiated settlements. Their expertise can help LLC members abate or waive penalties and address assessments before liens or criminal referrals occur.


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

All That You Wanted to Know About Form 706NA – Part II

 We previously posted All That You Wanted to Know About Form 706NA - Part I, where we discussed that in the area of estate tax compliance, many of us have prepared Form 706’s, the estate tax return for US citizens and domiciliaries.  To be sure, this form is quite voluminous and can take a while to fill out but there are very few mysteries beyond schedule E; what percentage of an asset might be includable in an estate, the value of an annuity, what debts and expenses are deductible, the calculation of the marital deduction, and the generation-skipping tax computation. The Form 706NA, however, preparation of the tax return for the estate of the nonresident alien owning property in the United States, can present a more daunting task.  

Based on our estate counsel Robert Blumenfeld's 32 years of experience as a senior attorney at the International office of the IRS, some of the strange and exotic problems that he discovered upon while auditing roughly 1,500 estate tax returns and preparing about 300 of the same in the last few years.
 

As he pointed out, one of the critical areas for each estate is to focus on is the decedent’s citizenship and domicile. To assist the IRS in reaching a conclusion, it is best to include the death certificate (required) as well as the birth certificate, passport, and any documents revealing the fact that the decedent expatriated from one country. This information may well be beneficial in avoiding an IRS examination. The problem is that once the IRS examines a tax return for one issue (i.e. citizenship or domicile), it opens the door for the IRS to examine a number of other issues that they might not have otherwise addressed. Kind of like opening Pandora's box. 

After we get through the information about the decedent himself, we reach an area of the return, Part III, General Information. Most of it is pretty obvious but… The first area of major concern may be whether the decedent died intestate. Many people who have assets in several countries have country specific wills, for instance one for the United States and one for say Canada, England etc. If the decedent did die testate, one should always include the US will. If there are other wills, go through them carefully before you submit them to the IRS because they make contain data which would create questions or problems with the IRS. In the alternative, many folks have a Universal Will which covers the disposition of assets in all countries. Because of the difference of rules from country to country, such a universal will may create problems with assets passing to a surviving spouse or a charity. 

Question two addresses debt obligations  or other property located in the United States. One of the major problems that I saw as an auditor was that people will value the house or condominium in the United States allocating no value to the contents. In most cases this is not a big deal but in the case of an expensive property, I, as the auditor always requested (summoned if the estate did not cooperate) a copy of the insurance policy plus the floater. Generally I found nothing specific but from time to time, I found an art collection worth several million dollars, an automobile collection worth over million dollars, and an extensive collection of rare China worse close to $1 million. If the client is wealthy or as expensive real estate in the United States, obtain a copy of the insurance floater before you prepare the 706NA to avoid great embarrassment. 

Question five relates to whether the decedent owned jointly held property in the United States. If the taxpayer plans to include 100% of the value of the asset, then this question should pose no problems. Two potential problems come to light: if the decedent came from a community property jurisdiction, is one half of the value of the asset excluded by operation of law in the foreign country? If one wishes to exclude a portion of an asset from a decedent in a non-community property jurisdiction, Section 2040 of the IRC places the onus again, of proving contribution on the surviving co-tenant. This can sometimes be a very difficult task, especially if the property is been held for a substantial number of years and many records/canceled checks etc. have been destroyed over the years. 

Question six asks whether the decedent had ever been a US citizen. If the answer to the initial question is yes but at the time of death, the decedent is no longer a US citizen, it is necessary to include in the paperwork sent to the IRS some evidence that the decedent properly expatriated from the United States. Based on the timing, if this happened shortly before death, it could raise the issue of expatriation to avoid tax. Again, getting this information before preparing the return is a good way to avoiding embarrassment at  the examination.

Have a US Estate Tax Problem?

 

Estate Tax Problems Require
an Experienced Estate 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).

 

Robert S. Blumenfeld  - 
 Estate Tax Counsel
Mr. Blumenfeld concentrates his practice in the areas of International Tax and Estate Planning, Probate Law, and Representation of Resident and Non-Resident Aliens before the IRS.

Prior to joining Marini & Associates, P.A., he spent 32 years as the Senior Attorney with the Internal Revenue Service (IRS), Office of Deputy Commissioner, International.

While with the IRS, he examined approximately 2,000 Estate Tax Returns and litigated various international and tax issues associated with these returns.As a result of his experience, he has extensive knowledge of the issues associated with and the preparation of U.S. Estate Tax Returns for Resident and Non-Resident Aliens, Gift Tax Returns, Form 706QDT and Qualified Domestic Trusts.

Read more at: Tax Times blog

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