Be sure you are in compliance with all tax requirements.
Digital Assets Alert
On February 15, 2022, the Internal Revenue Service(IRS) announced the revision of Form 14457, Voluntary Disclosure Practice Preclearance Request and Application including an expanded section on reporting virtual currency. Form 14457 allows taxpayers potentially facing criminal prosecution for willful violation of tax law to voluntarily disclose information they previously failed to disclose to the IRS.
Updates and additions to this form include:
- IRS Criminal Investigation now accepts photocopies, facsimiles and scans of taxpayer signatures.
- Taxpayers can send this form via eFax to 844-253-5613 to reduce mailing and processing times.
- Previously, Part II of this form had to be mailed.
- An expanded section for reporting virtual currency.
- A penalty structure for employment tax and estate and gift issues.
- A check-box for inability to pay in full.
The updates reflect input from practitioners and stakeholders and take into account trends in the type of financial asset that taxpayers hold.
About Our Blockchain and Digital Assets Group
No matter the stage of your business, BPM provides the technical advice you need to thrive and navigate through the rapidly changing regulatory landscape. Our professionals have extensive knowledge and experience in dealing with tax, accounting and auditing matters, as well as regulatory and compliance issues, including revenue recognition, IT compliance, enterprise risk management and classification of digital assets. Our integrated approach allows us to simplify complex business processes as a “one-stop” shop for all your financial needs and more. For more information, contact our Blockchain and Digital Assets Industry Group Leaders Mark Li, Partner in our Assurance Practice, or Dmitri Alexeev, Partner in our Tax practice.