2020 Year in Review: What Do Maryland Taxpayers Need to Know about IRS Compliance in 2021?

While the end of 2020 is likely to mean many different things to many different people, one thing that it means for everyone is that Tax Day will be here before we know it. As we head into 2021, it is important to keep the impending filing deadline in mind—and to take appropriate steps to ensure that you are not putting yourself at risk for an IRS audit or investigation. There is a lot you need to know, and we covered some important issues for Maryland residents on our blog throughout the year. Here is a look back at 10 of the top articles published by Maryland tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, in 2020:

1. Disclosing Offshore Accounts and Remedying Disclosure Violations

One issue that gets many Maryland taxpayers into trouble is failing to adequately disclose their offshore accounts. Taxpayers with offshore accounts potentially have multiple reporting obligations under the Bank Secrecy Act (BSA) and the Foreign Account Tax Compliance Act (FATC), and failing to file any of the required forms can lead to significant penalties. Learn more:

• Maryland Taxpayer with Offshore Accounts? Here’s What You Need to Know about FATCA

• What Do U.S. Taxpayers Need to Know about International IRS Tax Audits?

• Top 10 Things to Avoid for IRS Audits of Offshore Accounts

• What are the Risks of Using the IRS’s Voluntary Disclosure Practice?

2. Small Business IRS Compliance and Audit Risks

During 2020, the IRS opened a new Fraud Enforcement Office within its Small Business/Self Employed Division. The IRS has indicated that the Fraud Enforcement Office will be very active in 2021; and, as a result, small business owners and self-employed individuals will need to be especially careful to ensure that they accurately report and pay their federal income tax liability.

The IRS defines any company with assets of less than $10 million as a small business. As a result, numerous businesses across Maryland will fall within the jurisdiction of the agency’s new Fraud Enforcement Office. Learn more:

• New IRS Office Will Target Small Business Fraud

• 5 IRS Audit Concerns for Small Businesses

3.  Protecting Yourself During an IRS Audit or Investigation

From Paycheck Protection Program (PPP) fraud to failure to report cryptocurrency transactions, and from failing to disclose foreign financial assets to improperly claiming the home office deduction, numerous issues have the potential to lead to IRS audits and investigations. If the IRS targets you or your business in 2021, you will need to be prepared, and you will need to make informed and strategic decisions in order to minimize any potential liability. Learn more:

• IRS Audit? Don’t Make These 5 Common Mistakes

• What is At Stake if You Have Been Contacted by IRS Criminal Investigation (IRS CI)?

• IRS CI Highlights 2020 Enforcement Efforts During International Fraud Awareness Week

• How Do You Settle Your IRS Tax Liability with an Offer in Compromise?

Request a Confidential Consultation with Maryland Tax Attorney Kevin E. Thorn, Managing Partner of Thorn Law Group

Thorn Law Group is a tax compliance and defense law firm that represents individual and corporate taxpayers throughout Maryland. If you have questions or concerns about meeting your (or your company’s) obligations to the IRS, we invite you to schedule a confidential consultation. To request an appointment with Maryland tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 240-235-5096, email ket@thornlawgroup.com or get in touch with us online today.