2021 Year in Review: What Do Maryland Taxpayers Need to Know for 2022?

As we head into 2022, there is a lot that individual and corporate taxpayers need to know in order to be prepared. From new reporting obligations to new enforcement priorities, there were a lot of headlines in 2021. In this article, Maryland tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, recaps some of the top stories from the year.

FATCA and FBAR Compliance for Taxpayers with Offshore Assets

The Foreign Account Tax Compliance Act (FATCA) and Bank Secrecy Act (BSA) establish reporting requirements for individual and corporate taxpayers that own foreign financial accounts and other overseas assets. Compliance with these statutes is extremely important, as non-compliance can lead to civil or criminal penalties. These articles cover some important information for taxpayers that need to comply with FATCA and the BSA (by filing a Report of Foreign Bank and Financial Accounts (FBAR)) in 2022:

• 2021 FBAR and FATCA Requirements: Do You Need to File?
• IRS Publishes 2021 Guidance: How to Report Foreign Bank and Financial Accounts
• Foreign Financial Assets, FBARs and Streamlined Filings: What Maryland Taxpayers Need to Know

Cryptocurrency Tax Compliance

Cryptocurrency tax compliance will be a top priority for the Internal Revenue Service (IRS) in 2022. The IRS will also have new enforcement tools at its disposal next year. With this in mind, cryptocurrency investors must ensure that they have a clear understanding of their tax obligations, and they must take adequate steps to substantiate their compliance. Learn more:

• Are Cryptocurrency Trades Eligible for Like-Kind Exchange Treatment Under Section 1030?
• House Proposes New “Wash Sale” Tax Rule for Cryptocurrency
• What Should Crypto Investors Be Doing to Prepare for Tax Day 2022?
• IRS Resources for Cryptocurrency Investors

Remedying Past Filing Mistakes

For taxpayers who made mistakes in 2021 (or in prior tax years), taking proactive steps to correct their mistakes is critical for avoiding IRS scrutiny. These articles discuss the options that are available to taxpayers who need to supplement or correct their returns:

• How Do You Correct Mistakes on Your 2020 (or 2021) Tax Return?
• What To Do if You Missed the October 15 FBAR Deadline
• IRS Issues New Guidance for Taxpayers Seeking Offers in Compromise

Avoiding Trouble with the IRS in 2022

From IRS collections to IRS CI investigations, U.S. taxpayers in Maryland have plenty to be concerned about in 2022. But, taxpayers can also take steps to protect themselves; and, even if the IRS comes calling, taxpayers can avoid interest and penalties by providing documentation of compliance. So, what are some of the biggest risks for taxpayers heading into 2022? These articles discuss some important issues from 2021 that are likely to carry over into the New Year:

• IRS Warns Taxpayers to Avoid “Typical Tax Return Errors” in 2021
• IRS CI Continues to Target COVID-Related Tax Fraud
• Can You Trust Your Maryland Tax Preparer?
• Are You or Your Business a Possible Target for IRS CI in 2022?

Contact Maryland Tax Lawyer Kevin E. Thorn

If you need to know more about federal tax law compliance, you can contact us to arrange an initial consultation. To speak with Maryland tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, in confidence, please call 240-235-5096, email ket@thornlawgroup.com or request an appointment online today.