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Category Archives: criminal tax law

Treasury States That The Corporate Transparency Act Won’t Be Enforced Against US Citizens & Domestic Entities!

On March 3, 2025 we posted BOI Was Back But Treasury Now Says That It's Off Again - Is This Any Way to Run a Country? where we discussed that 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. This shift represents a major departure from the original intent of the law, which was designed to combat illicit financial activities through increased transparency of both domestic and foreign entities.

Key Developments

  1. Enforcement Pause: The Treasury Department will not enforce CTA reporting requirements against U.S. citizens, domestic entities, and their beneficial owners.
  2. Scope Reduction: Treasury intends to issue a proposed rule limiting the CTA's application to foreign reporting companies only.
  3. Deadline Extension: FinCEN previously announced a revision of beneficial ownership information reporting deadlines, with a new deadline to be set in an upcoming interim final rule.

Support for the Change:

  • Treasury Secretary Scott Bessent views this as a "victory for common sense" aligning with efforts to reduce regulatory burdens on small businesses.
  • The Cato Institute's Brent Skorup suggests Treasury may rely on statutory discretion to exempt most small businesses and nonprofits.

Criticism and Concerns:

  • Transparency advocates argue this change could make the U.S. a haven for illicit financial activity and may violate global anti-money laundering standards.
  • Some legal experts, like Chye-Ching Huang of the Tax Law Center, contend that Treasury lacks the authority to not enforce a law enacted by Congress.
  • Critics, including Senator Ron Wyden, view this as potentially benefiting entities seeking to hide illicit activities.

Ongoing Uncertainties

  1. Legal Status: The CTA remains in effect, despite Treasury's non-enforcement stance, creating potential risks for non-compliant entities.
  2. Information Clarity: There are concerns about the consistency and accessibility of information regarding these changes, with announcements coming from different sources within Treasury.
  3. Future Developments: The situation remains fluid, with potential for further legal challenges, congressional action, or additional regulatory changes.

This shift in CTA enforcement represents a significant policy change with wide-ranging implications for corporate transparency and anti-money laundering efforts in the United States.

Need Help Filing Your BOI Report?

 

     Contact the Tax Lawyers at

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Read more at: Tax Times blog

BOI Was Back But Treasury Now Says That It’s Off Again – Is This Any Way to Run a Country?


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. 


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

IRS Still Identifies Debt Resolution Companies as Scams on Its 2025 “Dirty Dozen List”

 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!


Offer in Compromise Mills: Taxpayers need to wary of misleading tax debt resolution companies that can exaggerate chances to settle tax debts for “pennies on the dollar” through an Offer in Compromise (OIC). These offers are available for taxpayers who meet very specific criteria under law to qualify for reducing their tax bill. 

But Unscrupulous Companies Oversell The Program To Unqualified Candidates So They Can Collect A Hefty Fee From Taxpayers Already Struggling With Debt.

These scams are commonly called OIC “mills,” which cast a wide net for taxpayers, charge them pricey fees and churn out applications for a program they’re unlikely to qualify for. 

"Offer Mills" can aggressively promote Offers in Compromise in misleading ways to people who clearly don't meet the qualifications, frequently costing taxpayers thousands of dollars. 

Although the OIC program helps thousands of taxpayers each year reduce their tax debt, not everyone qualifies for an OIC. 

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?

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at Marini & Associates, P.A.   

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Read more at: Tax Times blog

Surviving A Florida Sales Tax Audit

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

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