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Los Angeles Tax Law Blog

Are Cryptocurrencies Subject to FBAR and Form 8938 Reporting?

By of MillarLaw A Professional Corporation On Sunday, May 13, 2018

On May 2, 2018 The Section of Taxation of the ABA issued its  “Comments  Regarding OVDP and Streamlined  Procedures” in the form of a lengthy letter to Acting IRS Commissioner Kautter.  Section II B  provides “Guidance on Treatment of Undisclosed Cryptocurrencies”.   It is reprinted in pertinent part below (footnotes have been omitted in the interests … Continue reading Are Cryptocurrencies Subject to FBAR and Form 8938 Reporting?

Cryptocurrency and Asset Protection: Is Cryptocurrency the new Swiss Bank Account?

By of MillarLaw A Professional Corporation On Sunday, April 29, 2018

Perhaps the most popular feature of cryptocurrency is a promise of anonymity (read secrecy).  Cryptocurrency in many respects has replace the “numbered” Swiss bank account but without the protections of the bank secrecy laws of a sovereign country.  What cryptocurrency offers instead is the promise of the ability to move and store large amounts of … Continue reading Cryptocurrency and Asset Protection: Is Cryptocurrency the new Swiss Bank Account?

Make the California Top 500 Delinquent Taxpayer List and Lose Your Professional LIcense

By of MillarLaw A Professional Corporation On Sunday, April 22, 2018

In FRANCESCHI V. YEE, the Ninth Circuit Court of Appeals affirmed the right of the State of California to publish a list of the Top 500 Delinquent Tapayers and to suspend their drivers and professional licenses. “This action challenges the constitutionality of Section 19195 of the California Revenue and Taxation Code and Section 494.5 of the California Business … Continue reading Make the California Top 500 Delinquent Taxpayer List and Lose Your Professional LIcense

Audit Defense: The time to prepare for an audit is before the return is filed

By of MillarLaw A Professional Corporation On Sunday, April 15, 2018

A recent Tax Court case illustrates how a taxpayer should anticipate an audit by maintaining proper books and records. The case involved the deductibility of losses as “ordinary losses” as opposed to “passive losses” by an owner of a private jet. The specifics of the case are unnecessary to this discussion but the general principle … Continue reading Audit Defense: The time to prepare for an audit is before the return is filed

The End of the Offshore Voluntary Disclosure Program is Near!!! What Can I do?

By of MillarLaw A Professional Corporation On Sunday, April 8, 2018

On March 13, 2018 the IRS announced that the formal Offshore Voluntary Disclosure Program  (“OVDP”would end  September 28, 2018. The rationale for ending the the OVDP is as follows: “Taxpayers have had several years to come into compliance with U.S. tax laws under this program,” said Acting IRS Commissioner David Kautter. “All along, we have … Continue reading The End of the Offshore Voluntary Disclosure Program is Near!!! What Can I do?

Cryptocurrency and Money Laundering

By of MillarLaw A Professional Corporation On Sunday, February 18, 2018

In a recent enforcement action FinCEN, the Financial Crimes Enforcement Network levied an $8 million fine on a California card club for violation of the Anti-Money Laundering provisions of the Bank Secrecy Act. (“BSA”). One of the more common claims is the cryptocurrency is negotiable at casinos and card clubs resulting in Money Laundering opportunities. … Continue reading Cryptocurrency and Money Laundering

Internet Gambling, Cryptocurrency and IRS Enforcement

By of MillarLaw A Professional Corporation On Sunday, February 11, 2018

“The U.S. Internal Revenue Service, fresh off its success in uncovering U.S. assets hidden in Swiss banks, has assigned elite criminal agents to investigate whether Bitcoin and other cryptocurrencies are being used to cheat the taxman.” Bloomberg, 02/08/2018 Could Internet Gambling Sites be one of their targets? There are numerous on-line interactive casinos that accept … Continue reading Internet Gambling, Cryptocurrency and IRS Enforcement

Investor Risks of Direct Foreign Investment in the U.S.

By of MillarLaw A Professional Corporation On Sunday, January 28, 2018

The Tax Cuts and Jobs ACT of 2017 (TCJA) may have made direct foreign investment in the U.S. more attractive for foreign investment. The reduction of the corporate tax rate, favorable tax treatment of pass-through entities and a positive investment climate together with a strong “Rule of Law” structure gives the foreign investor reason to prefer … Continue reading Investor Risks of Direct Foreign Investment in the U.S.

Tax Evasion in the Age of Bitcoin

By of MillarLaw A Professional Corporation On Sunday, January 21, 2018

The 21st Century could well become known as the “Age of Anonymity”. Why, because of crypto-currencies. Crytpo-currency uses blockchain technology which is a fancy way of saying without that without the password it is forever hidden in a complex computer code. Crypto-currencies are not supported by any governments and have no underlying asset backing them, … Continue reading Tax Evasion in the Age of Bitcoin

A “Perry Mason” Moment

By of MillarLaw A Professional Corporation On Friday, January 19, 2018

Perry Mason was a television dram about a criminal defense lawyer who somehow managed to get his clients acquitted through clever cross examination of the real criminal. His techniques often managed to get the witness to confess “It was me, I did it” Just recently I had a Perry Mason moment but it occurred after … Continue reading A “Perry Mason” Moment

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