2021 Year in Review: What Virginia Taxpayers Need to Know for 2022

As we close the book on 2021, U.S. taxpayers need to be looking ahead to 2022. Tax season is right around the corner, and those who make mistakes can expect to hear from the Internal Revenue Service (IRS). In this article, Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, recaps some of the top tax stories from 2021 that will continue to impact taxpayers in the New Year (and beyond).

Here’s What Taxpayers Need to Know for 2022 If…

…They Invest in Cryptocurrency

The IRS has made clear that it will be placing cryptocurrency investors under the microscope going forward. IRS Criminal Investigation (IRS CI) recently reported that 2021 was a banner year for enforcement; and, with new tools at its disposal, the agency won’t be holding back in 2022. Learn more:

• Important New Tax Changes On the Horizon for Cryptocurrency Investors
• IRS CI: 93 Percent of Assets Seized in 2021 Were Cryptocurrency
• 5 Cryptocurrency Mistakes That Will Get the IRS’s Attention in 2021 (and 2022)

…They Own Offshore Financial Assets

Individuals and businesses that own offshore financial assets have reporting obligations that don’t apply to other taxpayers. Failure to comply with these obligations can lead to substantial penalties, but taxpayers that have fallen behind on their filings can take steps to mitigate their liability in some cases. Learn more:

• What Are the Options for Voluntarily Disclosing Offshore Assets in 2021 (and 2022)?
• What Constitutes “Reasonable Cause” for a Delinquent FBAR?
• What To Do if You Didn’t File an FBAR By April 15, 2021

…They are Planning to Open a Legal Cannabis Business in Virginia

Virginia joined the growing number of states legalizing the recreational use of cannabis in 2021, and Virginia’s new Cannabis Control Authority is in the process of developing regulations that will govern the Commonwealth’s adult-use cannabis marketplace in the years to come. For companies planning to enter the marketplace, now is the time to start thinking about tax compliance. Learn more: Tax Considerations for Businesses Entering VA’s Adult-Use Cannabis Marketplace

…They’ve Made Past Filing Mistakes

For taxpayers who have made filing mistakes in the past, correcting these mistakes proactively can significantly mitigate their liability. These articles provide some important information for those who made mistakes in 2021 (or in prior tax years):

• 10 Filing Mistakes That Could Lead to an IRS Audit or Investigation
• IRS Publishes New Guidance on Offer in Compromise (OIC) Program
• IRS Provides Guidance Regarding Taxpayers’ Right to Legal Representation

…They Want to Avoid Problems with the IRS in 2022

Facing an IRS audit or investigation is never easy, and it is something that both individual and corporate taxpayers should avoid if at all possible. So, what can you (or your company) do to avoid IRS scrutiny in 2022? Here are some key considerations:

• Tax Deductions for Conservation Easements Face IRS and DOJ Scrutiny
• Should You Take Those End-of-Year Tax Deductions?
• Should Your Company Apply for the IRS’s Compliance Assurance Process (CAP) Program?

Schedule a Consultation with Virginia Tax Lawyer Kevin E. Thorn

Our firm provides experienced legal representation for individuals and businesses that are facing problems with the IRS. If you have questions or concerns about federal tax compliance heading into 2022, call 703-752-3752, email ket@thornlawgroup.com or get in touch online to schedule a consultation with Virginia tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group.