SAN DIEGO (PRWEB) July 02, 2021
SMIB Management announced today that the Internal Revenue Service has begun a major increase in adding personnel with the hiring of thousands of new IRS auditors in the agency’s efforts for a major tax-enforcement initiative.
According to a recent Bloomberg article, the IRS held a recent tax conference in which, IRS officials indicated the agency is adding nearly 2,000 new employees. Among these new positions 1,300 will be new IRS auditors added to the SBSE (Small Business Self Employed) Division along with over 500 new personnel being added to the IRS CID (Criminal Investigation Division). Details of the conference were contained in Bloomberg’s Laura Davison and Genevieve Douglas report.
James Harnsberger of SMIB Management, a tax consulting firm in San Diego that specializes in Crypto Currency Tax Consulting and Representation matters before the IRS, stated, “These new hires and targeted enforcement efforts represent a major uptrend by the IRS—the largest we have seen in more than twenty years. These efforts will no doubt mean a significant increase in examination capacity for the IRS, with substantial resources aimed at the Crypto Currency space.” As such, SMIB Management is leading the way in new processes for handling the new inflow of Crypto Currency clients that might need specialized care from a firm that can facilitate the demands of the increased auditing efforts.
The market activity surrounding Bitcoin and other crypto currency assets, along with significant increases in foreign activity surrounding these digital assets, presumably will be among the major focus of enforcement efforts by the Internal Revenue Service. Chief among these efforts will likely be non-reporting and under-reporting of crypto transactions and the non-disclosure of foreign accounts in which taxpayers may have used platforms in a foreign country and not known or understood the foreign disclosure requirements. Mr. Harnsberger added on that issue, “The IRS has a safe-harbor against penalties for non-disclosure of foreign activity so long as a taxpayer comes forward to take corrective action in their reporting and disclosure obligations BEFORE the IRS begins an audit or investigation on the taxpayer.”
Mr. Harnsberger further stated, “The IRS will undoubtedly be poised for the expected funding increase by Congress of nearly $2.0 billion. We believe much of the focus will be directed at unreported crypto currency transactions and unmet foreign disclosure and reporting obligations under FBAR (Foreign Bank Account Reporting) and FinCEN (Financial Crimes Enforcement Network) requirements. We also see the potential for expanded civil fraud examinations coming from these efforts in 2022 to 2024.”
SMIB Management, a tax consulting firm, is located in San Diego, CA. The firm specializes in audits, examinations and appeals focused on the crypto currency market space. Mr. Harnsberger is an Enrolled Agent admitted to practice before the IRS and holds an NTPI Fellowship and Paralegal Credential. He has specialized in Audit/Examination Appeals for over twenty years in his 30-plus year career.
FOR MORE INFORMATION CONTACT
James Harnsberger, Enrolled Agent
(619) 592-2708
[email protected]
http://www.SMIBManagement.com
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