Celesq® Attorneys Ed Center

Cryptocurrency: Current Tax and Bank Secrecy Act Regulatory and Enforcement Environment

Program Number: 3149

Program Date: 02/26/2021

Description

Virtual currencies, including cryptocurrency, have recently received significant attention from the IRS, the Financial Crimes Enforcement Network, the U.S. Department of Justice Tax Division, and other law enforcement agencies. The panelists, led by the former chief of the IRS Criminal Investigation Division, will explore recent guidance from FinCEN and/or the IRS with respect to: (1) the collection, retention, and disclosure to the U.S. government of certain transactions involving cryptocurrency; (2) the taxation of, and tax reporting standards for, cryptocurrency; and (3) Bank Secrecy Act reporting, such as the Foreign Bank Account Report. The panelists will also discuss strategies to mitigate the risk of civil and criminal penalties for noncompliance with the internal revenue laws, including the availability of the qualified amended return and the IRS’s voluntary disclosure practice. This webinar is a must-attend for all professionals and practitioners who operate in the space of, or advise on, cryptocurrency.

Objectives: After this presentation, attendees should understand:

1. Proposed regulations adopting recordkeeping, verification and reporting requirements for certain deposits, withdrawals, exchanges, payments, or transfers of cryptocurrency by, through, or to a bank or money service business;
2. Proposed regulations requiring banks and nonbank financial institutions to collect, retain, and transmit to the U.S. government certain information related to fund transfers and transmittals of funds over $250;
3. The taxation of, and tax reporting standards for, cryptocurrency, including proposed rules requiring cryptocurrency to be reported on FinCEN Form 114, Report of Foreign Bank and Financial Accounts; and
4. The current civil and criminal regulatory environment, including the use of the qualified amended return and the voluntary disclosure as a means to limit civil and criminal penalties.

$95.00Audio Tape Add to Cart

Available in states

California, Colorado Eligible, Florida, Georgia, New Jersey Eligible, New York, Texas Self Study

Credit Information

50 minute credit hour - 1.25 General CLE credit
60 minute credit hour - 1.25 General CLE credit

State Program Numbers

Presenters


John D. (Don) Fort, Esq.

Kostelanetz & Fink, LLP

John D. (Don) Fort is the Director of Investigations at Kostelanetz & Fink, LLP, and the immediate past Chief of the Internal Revenue Service’s Criminal Investigation (CI) Division. Having spent nearly 30 years in law enforcement for the federal government, Mr. Fort has deep expertise in financial crimes, and has developed an extensive network of connections both within the government and in private industry. At K&F, he now assists clients facing governmental investigations involving all manner of alleged financial and economic crimes, including tax controversies or suspected tax crimes, money laundering, and Bank Secrecy Act violations. Mr. Fort also is involved in conducting internal investigations and advising clients on compliance regimes. He is available as an expert witness and for voluntary or court-mandated monitorships.

Mr. Fort’s time in law enforcement included overseeing investigations of some of the most significant financial crimes involving tax evasion, sanctions evasion, money laundering, bribery, international corruption, bank malfeasance, cyber and cryptocurrency crimes, and terrorist financing.

As Chief of IRS-CI from 2017 to 2020, Mr. Fort led the sixth largest U.S. law enforcement agency, managing a budget of over $625 million and a worldwide staff of approximately 3,000, including 2,100 special agents in 21 IRS field offices and 11 foreign countries. Mr. Fort modernized IRS-CI by developing cutting-edge, data-centric methods of detecting criminal non-compliance through algorithms and other models. Mr. Fort also significantly expanded IRS-CI’s capabilities in cyber-crime and cryptocurrency investigations, and expanded the agency’s international presence and footprint. Mr. Fort led IRS-CI in identifying and investigating over $11.5 billion in tax loss and $14.8 billion in other criminal proceeds.

As both Chief and Deputy Chief of IRS-CI, he oversaw numerous high-profile matters, including the college admissions scandal known as “Varsity Blues” that ensnared several celebrities; the Paul Manafort and Michael Cohen federal tax investigations; the Michael Avenatti tax investigation; the takedown of the largest darknet child exploitation website funded by cryptocurrency; two Chinese nationals who were charged with laundering $100 million in the hack of a cryptocurrency exchange; the Swiss Bank Program in which 80 Swiss banks entered into agreements with the government and paid $1.36 billion in penalties; the Federation Internationale de Football Association (FIFA) worldwide money laundering, structuring, and tax evasion matter; the Credit Suisse guilty plea, and many more.

Mr. Fort began his IRS career in 1991 as a Special Agent in Baltimore, Maryland, and later served as Supervisory Special Agent in Orlando, Florida; Senior Analyst and Acting Director, Office of Special Investigative Techniques; Assistant Special Agent in Charge of the Baltimore and Washington, D.C. Field Offices; Special Agent in Charge of the Philadelphia, Pennsylvania, Field Office; and Deputy Director of Strategy, IRS-CI Headquarters.

Mr. Fort entered the Senior Executive Service in January 2011, when he was appointed to serve as a Director of Field Operations--the position he held until his appointment as Deputy Chief, IRS-CI. In 2020, Mr. Fort was the recipient of the ACAMS Public-Private Partnership Award.

Mr. Fort is an accomplished public speaker and serves as an expert in law enforcement, leadership, financial crimes, and enhancing public-private partnerships. As Chief of IRS-CI, Mr. Fort was also regularly called upon to deliver media briefings and give interviews on important matters before the IRS. Mr. Fort has extensive experience in briefing high-level government officials, has testified before Congress and has provided numerous briefings to congressional staff.

Mr. Fort has a Bachelor of Arts Degree in Management from Gettysburg College and is a licensed CPA in the State of Virginia.

 

Lawrence (Larry) Sannicandro, Esq.

Kostelanetz & Fink, LLP

Lawrence (Larry) Sannicandro is a partner at Kostelanetz & Fink and focuses his practice on federal and state tax controversies, including representation in audits, administrative appeals, collection matters, summons proceedings, criminal tax investigations and prosecutions, and litigation in the United States Tax Court, federal district and appellate courts, and state tax tribunals. Mr. Sannicandro has extensive experience providing tax-related advice with respect to original tax return reporting positions on a broad range of substantive tax issues, amending tax returns, filing and litigating claims for refund, challenging civil tax penalties, reporting foreign assets and income, and making voluntary disclosures.

Mr. Sannicandro serves as the Chair of the Tax Collection, Bankruptcy and Workouts Committee of the American Bar Association (ABA) Section of Taxation. On behalf of the ABA Section of Taxation, he has drafted comments to Congress and the IRS on a wide range of tax issues, such as reforming the procedures for auditing and litigating against partnerships and the need to adopt a voluntary disclosure program for unreported cryptocurrency transactions. For his service to the ABA, Mr. Sannicandro was awarded the John S. Nolan Fellowship.

Mr. Sannicandro also teaches a course in tax practice and procedure as an adjunct professor at Fairleigh Dickinson University, and he has taught classes on corporate tax, partnership tax, and negotiations as an adjunct professor at Pace University and a lecturer at Georgetown University Law Center and Rutgers Law School.

Mr. Sannicandro is a dedicated pro bono advocate. He works with the After Innocence organization to provide tax-related advice to wrongfully convicted individuals. For his work in co-designing and co-implementing an entirely new form of low-income taxpayer assistance, the ABA Section of Taxation awarded Mr. Sannicandro the 2020 Janet Spragens Pro Bono award, the Section of Taxation’s highest award for pro bono. Mr. Sannicandro also regularly appears on behalf of taxpayers as part of the New York County Lawyers Association’s U.S. Tax Court Calendar Call Program. The New York County Lawyers Association awarded Mr. Sannicandro its Pro Bono Award in 2015.

Prior to entering private practice, Mr. Sannicandro served as a law clerk for the United States Tax Court, and before that, as an attorney for the IRS. He earned his LL.M. in Taxation from Georgetown University Law Center, his J.D. from the University of Florida Levin College of Law, and his M.B.A. in Finance from Binghamton University.

Mr. Sannicandro is a frequent author on tax practice and procedure, having published articles in the Journal of Tax Practice and Procedure, Law360, Tax Notes®, TAXES – The Tax Magazine®, The New Jersey Law Journal, and the Westlaw Journal. He is the co-author of Qualified Appraiser, Qualified Appraisal: Practice, Procedure, Legal Analysis, and Theory (John Wiley & Sons, Inc. 2017), and Tax Practitioner’s Guide to Identity Theft (CCH, Inc. 1st ed. 2015; 2d ed. 2016). He is also a contributing author to the Effectively Representing Your Client Before the IRS (Chapter 10 of the ABA Section of Taxation’s guide).

 

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