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IRS Announces Audit Priorities for Fiscal Year 2024

tax audit

On September 8th, 2023, the IRS announced 2024 audit priority areas in IR-2023-166.  These priorities are a result of increased funding from the Inflation Reduction Act.

While abusive micro-captive insurance schemes and syndicated conservation easement abuses have garnered substantial public attention, the areas of IRS focus are: (1) crypto audits; (2) FBAR exams; and (3) construction worker tax shelters.

IRS Expands Focus on Crypto Currency

The use of digital assets, including cryptocurrencies, has grown significantly in recent years. To ensure tax compliance in this evolving landscape, the IRS is expanding its efforts. The IRS stated that it plans to use the John Doe summons process and introduce proposed broker reporting regulations. The IRS’s Virtual Currency Compliance Campaign aims to address the potential 75% non-compliance rate among taxpayers identified through record production from digital currency exchanges.

How The Law Offices of Todd S. Unger, Esq. LLC can help?

Navigating the complex tax implications of digital assets can be challenging. Our firm offers expert IRS tax attorney guidance to ensure you remain compliant with IRS regulations related to digital assets and can assist with any IRS crypto audit.

Increased Scrutiny on FBAR Violations

Foreign Bank Account Reporting (FBAR) violations continue to be a concern, especially among high-income taxpayers. Taxpayers with financial interests in foreign accounts exceeding $10,000 are required to file an FBAR. The IRS has identified hundreds of potential FBAR non-filers with significant account balances, averaging over $1.4 million. In FY 2024, the IRS plans to audit the most egregious potential non-filer FBAR cases.

How can NJ Tax Attorney, Todd Unger Help?

If you have foreign financial interests and are concerned about FBAR compliance, our firm can provide guidance on filing requirements and assist with addressing any FBAR-related issues during IRS audits.  Getting ahead of these matters before the IRS opens an audit is the best tax solution.

Scrutiny on Labor Brokers

Instances have arisen where construction contractors make payments to apparent subcontractors who are “shell” companies with no legitimate business relationship. These funds are often processed through Money Service Businesses or shell company accounts before being returned to the original contractor. This scheme, identified in Texas and Florida, is subject to increased IRS attention in FY 2024.

Tax Attorney Todd Unger is here to help.

If you’re involved in the construction industry and wish to ensure compliance with IRS regulations, our firm can provide valuable insights and support during audits.  These cases have significant criminal tax exposure for NJ taxpayers.  The best way to resolve criminal tax exposure is to do so voluntarily before the IRS begins a tax audit.

Contact the Law Offices of Todd S. Unger, Esq. LLC

As the IRS intensifies its compliance efforts in FY 2024, taxpayers and businesses must stay informed and be proactive. The Law Offices of Todd S. Unger, Esq. LLC stands ready to assist you with expert guidance, ensuring compliance and helping navigate the complexities of IRS audits in these priority areas.  The Law Offices of Todd S. Unger, Esq. can help you stay compliant, protect your financial interests, and develop personalized support tailored to your specific needs.  Call Tax Attorney, Todd Unger today for a confidential consultation at (877) 544-4743.

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