{"id":1282,"date":"2020-04-08T10:39:38","date_gmt":"2020-04-08T14:39:38","guid":{"rendered":"http:\/\/ielrblog.com\/?p=1282"},"modified":"2020-04-08T16:11:32","modified_gmt":"2020-04-08T20:11:32","slug":"covid-19-adds-pressure-to-detention-tax-controversy-and-facilitates-fraudulent-schemes","status":"publish","type":"post","link":"https:\/\/ielrblog.com\/index.php\/2020\/04\/08\/covid-19-adds-pressure-to-detention-tax-controversy-and-facilitates-fraudulent-schemes\/","title":{"rendered":"COVID-19 ADDS PRESSURE TO DETENTION, TAX CONTROVERSY, AND FACILITATES FRAUDULENT SCHEMES"},"content":{"rendered":"

Covid-19 has impacted several domestic and international enforcement efforts in the U.S.\u00a0 This piece discusses detention battles, the work of the IRS, and the Department of Justice, the latter in trying to stop the incidence of Covid-19 fraud<\/p>\n

    \n
  1. DETENTION BATTLES<\/strong><\/li>\n<\/ol>\n

    As a result of the coronavirus, there is much litigation concerning pre-trial detention.\u00a0 In this regard, on March 19, 2020, U.S. Magistrate Judge Thomas S. Hixson, U.S. District Court N.D. Ca. issued a 4-page opinion, ordering \u00a0the release of Alejandro Toledo Manrique, saying he was persuaded that the 74-year old former head of state was in serious risk of death or serious injury unless released.\u00a0 Peru has requested his extradition on corruption-related offenses.\u00a0 Toledo was detained in the San Mateo County jail.\u00a0 Magistrate Judge Hixson observed the absence of testing kits at the jail.\u00a0 Hixson imposed various conditions to mitigate the potential that Toledo may try to flee.<\/p>\n

    On April 3, 2020, the Attorney General, issued a “Increasing Use of Home Confinement at Institutions Most Affected by COVID-19”<\/a>.<\/p>\n

    On March 26, 2020, the Attorney General, issued a memo \u201cPrioritization of Home Confinement As Appropriate in Response to COVID-19 Pandemic\u201d<\/a>.<\/p>\n

    \u00a0 \u00a0 2. INTERNAL REVENUE SERVICE (IRS)<\/strong><\/p>\n

    On April 3, 2020, due to the coronavirus pandemic, the IRS issued an evacuation notice directing that nearly all of its employees work from home on mandatory telework starting Monday, March 30.\u00a0 Only employees performing \u201cmission-critical duties\u201d will be permitted to come into the office.\u00a0 Access to IRS offices will be restricted, with employees allowed only to pick up work files and mail.\u00a0 Affected employees were instructed to take home whatever they needed to work remotely for the foreseeable future.<\/p>\n

    This may present a problem for tax confidentiality.\u00a0 Due to confidentiality, most IRS officials refuse to allow communication by email.<\/p>\n

    The IRS has not communicated about whether call centers would continue to be staffed, or whether mail sent to service centers would be opened and processed.\u00a0 Clearly communication with the IRS, already difficult even for practitioners, will become more challenging.<\/p>\n

    The IRS has already extended the filing deadline for income tax returns from April 15 to July 15.<\/p>\n

    The IRS is in charge of distributing economic impact payments.\u00a0 On March 30, the IRS announced it will start in the next three weeks and will be distributed automatically, with no action required for most individuals. However, some seniors and others who do not file returns will need to submit a simple tax return to receive the stimulus payment.<\/p>\n

    On March 23, The United States Tax Court issued a press release announcing that more trial sessions have been cancelled in light of the COVID-19 pandemic.\u00a0 The Court has cancelled all trial sessions through the end of June 2020.<\/p>\n

    The IRS will have difficulty making progress in its audits and enforcement cases.\u00a0 It already suffered due to the federal shutdown in January and now because of the need to prioritize its resources in sending economic impact payments.<\/p>\n

    3. DEPARTMENT OF JUSTICE<\/strong><\/p>\n

    The DOJ has issued an alert about criminals trying to exploit COVID-19 worldwide through a variety of scams<\/a>.\u00a0 There have been reports of:<\/p>\n

    \u201c\u2022 Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.<\/p>\n