The Wall Street Journal quoted Kostelanetz & Fink LLP partner Bryan Skarlatos in their recent article on the Internal Revenue Service’s crackdown on Americans who have not reported income from cryptocurrencies. On his advice to clients who may have made money from crypto, Mr. Skarlatos said, “I tell them, ‘It’s time to put your running shoes on.’ You must get to the IRS before they find you, especially if you got a letter.”

NEW YORK (August 15, 2019) — Kostelanetz & Fink is pleased to announce that The Best Lawyers in America has recognized six of its attorneys in its 2020 edition. The Best Lawyers in America (2020 edition), released August 15, 2019, recognizes the firm’s attorneys in the areas of Litigation and Controversy – Tax, Tax Law, Commercial Litigation, and Criminal Defense: White Collar. The annual list is based on a peer review process and reflects the consensus opinion of leading lawyers about the professional abilities of their peers within the same geographical regions and practice areas, according to the Best Lawyers website.  

The IRS has selected two longtime agency executives, Eric Hylton and Tamera Ripperda, to take over as heads of the Small Business/Self-Employed Division and the Tax-Exempt and Government Entities Division, respectively.

Current SB/SE Deputy Commissioner Ripperda will replace TE/GE Commissioner Sunita Lough, who will take over as deputy commissioner of services and enforcement starting September 1. IRS Criminal Investigation Deputy Chief Hylton will then become head of SB/SE, according to an IRS release.

Some cryptocurrency holders are now disclosing past tax lapses to avoid potential criminal prosecution.

Bryan Skarlatos, a lawyer with Kostelanetz & Fink with several such cases, reminds cryptocurrency investors of the IRS’s success in piercing the veil of Swiss bank secrecy. Since 2009, more than 56,000 Americans who hid money in offshore accounts have paid more than $11 billion to resolve tax issues.

"Digital currency holders shouldn’t think they can hide from the IRS," he says.

Smaller investors are also feeling heat. Many traded during last year’s price spike, and tax preparers are now asking clients routinely about cryptocurrency sales. They aren’t supposed to sign returns with unreported income.

The NYU School of Professional Studies is pleased to present the 11th Annual Tax Controversy Forum. The Tax Controversy Forum brings together representatives from the government and expert private practitioners to compare perspectives on a variety of topics involving federal tax audits, and civil and criminal tax penalties. 

Enforcement is an essential part of our federal tax system. The Tax Controversy Forum is an opportunity to stay current on new developments, exchange ideas, and share practice tips that can contribute to a better functioning system. Participants qualify for CPE and CLE credits. As a premier educational institution, the NYU School of Professional Studies is committed to providing the highest standard of professional enrichment.

As IRS enforcement becomes more automated, the need for trained representatives who know what to do and when to do it has never been greater. This panel covered the mechanics of representing taxpayers before the IRS, including exam and collections, so that attendees can identify and understand when taxpayers need help, and how to go about the process of helping them resolve their IRS issue. 

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A continuing decline in Internal Revenue Service audit rates could soon reverse course due to an influx of workers to conduct examinations and a plan to modernize technology at the agency.

The IRS Data Book released in May showed the audit rate for the largest corporations fell to just under 50% in 2018 from over 91% in 2013, and the rate for the highest-earning individuals dropped to 6.7% in 2018 compared with an audit rate of nearly 35% in 2015.

IRS officials have blamed the yearslong drop in audit rates on dwindling agency funding over the past nine years and staff retirements that drain the agency's knowledge base. However, the decline may soon be reversed due to developments that will likely give the IRS more resources than it has had in the past, according to Bryan C. Skarlatos, a partner at Kostelanetz & Fink LLP.

“I'm thinking things are going to start trending up,” he said. “It may take more than a year to get it up, but I think by 2020 you'll see audit rates go up.”

Impact on partnerships of recent judicial decisions, legislation, and administrative developments relating to economic substance, tax shelters and the codification of the economic substance doctrine, including LB&I Directives; penalty defenses, rules of professional responsibility and conduct, including Circular 230 and related ethical considerations that come into play in evaluating the difference between good tax planning and overly aggressive or even criminal tax advice.

“An Extraordinary Group of Lawyers Who Are Outstanding Individually and Outstanding as a Team”

NEW YORK, NY (April 30, 2019) – Kostelanetz & Fink is pleased to announce that Chambers and Partners has recognized the firm in its 2019 USA Guide. The guide, released April 25, 2019, recognizes K&F and its attorneys in the areas of tax controversy, tax fraud, tax law, and white-collar defense and government investigations. Chambers USA ranks the top lawyers and law firms across all the United States of America through assessment of a firm’s work and opinions from external market sources, with an emphasis on client feedback.

The IRS can fill out a substitute return for you—and it usually isn’t accurate. And a lot of penalties and interest will accrue.

Even if you don’t go to jail, blowing off the Internal Revenue Service is a really bad idea.

Take Larry Cecil Cabelka of Megargel, Texas. Mr. Cabelka didn’t submit tax returns for 12 years during the 1990s and 2000s, according to a March 26 ruling by a U.S. appeals court. As a result, said the court, he owes the U.S. more than $26 million.