IRS AUDITS CRYPTOCURRENCY, MICRO-CAPTIVES AND CONSERVATION EASEMENTS

Crypto-currency holders are getting close attention from the IRS. Remember, an auditor’s job is to find mistakes in your return. It can be expensive to defend yourself against the IRS because audits often take a year and a half to resolve. This stress can take a heavy toll on letter recipients. Anyone not experienced in crypto audits will make a poor advisor if you’ve received a letter. It’s essential to ask your advisor if they have experience in crypto audits. MICRO-CAPTIVE CASE On December 1, 2020, the United States Supreme Court heard oral arguments in CIC Servs. LLC v. Internal Revenue Service, a case challenging the Internal Revenue Service’s (IRS) reporting requirements around certain transactions involving captive insurance companies that elect to be taxed under § 831(b) of the Internal Revenue Code (referred to as “micro-captives”). Lance Wallach was an expert witness against CIC and as an expert witness has never lost a case. CONSERVATION EASEMENT AUDITS The IRS is conducting large-scale audits of land conservation transactions—targeting billions of dollars of potentially inflated deductions, hundreds of partnerships, and thousands of investors. The agency is investigating appraisers, tax preparers, and any other individuals who may have helped organize and sell syndicated conservation easement deals in addition to those who participated in the transactions 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