In 2020, the Financial Crimes Enforcement Network (FinCEN) provided guidance regarding the FBAR implications of holding cryptocurrency overseas. At the time, FinCEN made clear that “a foreign account holding virtual currency is not reportable on the FBAR (unless it is a reportable account . . . because it holds reportable assets besides virtual currency).” However, FinCEN also stated that it intended to propose amended regulations that would require FBARs for offshore cryptocurrency accounts.

The Internal Revenue Service (IRS) recently announced that it has extended the federal work opportunity tax credit through 2025. Like the employee retention credit offered for 2020 and 2021, Virginia businesses claiming the work opportunity tax credit must be careful, as improperly claiming eligibility can lead to liability for back taxes, interest and penalties.

Crowdfunding platforms have become popular tools for businesses to launch new products and services. Using these platforms allows businesses to secure funding without going into debt or giving up shares to venture capitalists, and it allows them to promote their new offerings in ways not available through other means.

With the gig economy bolstered by the COVID-19 pandemic and wages skyrocketing as businesses compete for qualified employees, many businesses are finding themselves increasingly reliant on independent contractors. While hiring employee contractors offers a variety of benefits—including tax benefits—businesses need to ensure that their “nonemployee” compensation practices are not putting them at risk for IRS penalties.

The employee retention credit was available to qualifying businesses in 2020 and 2021 to help offset the costs of keeping employees on staff during the height of the COVID-19 pandemic. The rules and restrictions governing the employee retention credit changed over time, and, as a result, it is likely that some businesses (if not many businesses) claimed the credit improperly.