2022 Year in Review: What U.S. Taxpayers in Virginia Need to Know for 2023

Each year, we publish dozens of articles on our blog discussing topics of interest to individual and corporate taxpayers in Virginia. In 2022, we covered topics ranging from Paycheck Protection Program (PPP) fraud and cryptocurrency tax evasion to the rules regarding charitable distributions and offshore bank accounts. Here are some of the highlights:

Pandemic Relief Fraud Remains a Top Enforcement Priority for IRS CI

With news reports estimating the total cost of pandemic relief fraud in the tens of billions of dollars, IRS Criminal Investigation (IRS CI) was among several federal authorities to prioritize enforcement under the Paycheck Protection Program (PPP) and other relief programs in 2022. According to IRS CI, it plans to continue prioritizing enforcement in this area in 2023. Articles we published on this topic throughout the year included:

• Pandemic Fraud Remains a Top Priority for IRS CI
• Did Your Company Improperly Claim the COVID-19 Employee Retention Credit?
• Report: Approximately 1.4 Million PPP Loans May Be Ineligible for Forgiveness

FATCA vs. FBAR: Which One(s) Apply to Your Offshore Accounts?

Individual and corporate taxpayers that own offshore bank accounts must report these accounts to the federal government annually—subject to limited exceptions for small accounts. This may involve filing IRS Form 8938 under FATCA, filing an FBAR or both. We discussed the differences between the FBAR and FATCA filing requirements in the following:

• 2022 FATCA and FBAR Comparison: Which Form(s) Do You Need to File?
• Were You Supposed to File an FBAR with Your 2022 Income Tax Return
• What Types of Foreign Financial Assets Trigger FATCA Reporting (IRS Form 8938)?

Business Income and Employment Tax Issues

Businesses face multiple federal tax reporting and payment obligations. From cryptocurrency to crowdfunding, various issues can present challenges for both establishing and maintaining compliance. Of course, businesses must effectively manage their more-traditional tax obligations as well—and this, too, can prove challenging in many cases. Some of the business tax issues we covered in 2022 were:

• Do Businesses in Virginia Have to Pay Income Tax for Crowdfunding Campaigns?
• What Virginia Business Owners Need to Know About the IRS’s Work Opportunity Tax Credit
• What Virginia Businesses Need to Know About Nonemployee Compensation

Avoiding (or Mitigating) Penalties for Federal Tax Law Violations

For both individuals and businesses, federal tax law violations can lead to substantial penalties. Individual and corporate taxpayers should seek to avoid these penalties whenever possible, and they should seek to reduce their penalty liability when warranted. In 2022, we covered topics in this area including:

•  Are You Eligible for Penalty Relief from the IRS?
• IRS Issues Reminder: Taxpayers Can Face Penalties for Both Failure to File and Failure to Pay
• What Should You Do if IRS CI Contacts You for an Interview?

Request a Confidential Consultation with Tax Lawyer Kevin E. Thorn in Virginia

If you need more information about any of these topics—or any other IRS-related issue—in 2023, we invite you to get in touch. To request a confidential consultation with tax lawyer Kevin E. Thorn, Managing Partner of Thorn Law Group, please call 703-752-3752, email ket@thornlawgroup.com or contact us online today.