IRS IS BUILDING CASES AGAINST CRYPTOCURRENCY AND CONSERVATION EASEMENT TRANSACTIONS

The IRS is taking steps to build cases against taxpayers who fail to report cryptocurrency. Despite more awareness of tax rules today, the IRS appears to believe that millions of transactions may be unreported. Taxpayers may think they will not be caught, but the risks are growing, and the best way to avoid penalties is to disclose and report as accurately as you can. Taxpayers may think that the IRS may penalize them, but might assume that they do not need to worry about criminal exposure. Yet violators can face large penalties or even criminal investigation. Anyone convicted of tax evasion can face up to 5 years in prison and fines as high as $250,000. CONSERVATION EASEMENT AUDITS Court struck down four more abusive syndicated conservation easement transactions. The Internal Revenue Service calls on any taxpayer involved in syndicated conservation easement transactions who receives a settlement offer from the agency to accept it soon. These time-limited settlement offers are only being made to certain taxpayers with pending docketed Tax Court cases involving this type of abusive transaction. These and other recent Tax Court decisions support the abusive nature of the underlying syndicated conservation easement deduction. The four most recent U.S. Tax Court decisions disallowed conservation easement deductions totaling nearly $21 million. "The IRS will continue to actively identify, audit and litigate these syndicated conservation easement deals as part of its vigorous and relentless effort to combat abusive transactions," said IRS Commissioner Chuck Rettig. "These abusive transactions undermine the public's trust in private land conservation and defraud the government of revenue. We strongly recommend that participants seek the advice of competent, independent advisors. Ending these abusive schemes remains a top priority for the IRS." Lance Wallach receives hundreds of calls annually to help people fight the IRS and get their money back from the promoters of these scams. Google Lance Wallach and your advisor, who do you trust? 516-236-8440 Wallachinc@gmail.com