EP59: The FTX Scandal

Tax Man, Tax Relief Podcast

There has been a great deal of interest surrounding the FTX scandal and the role played by Sam Bankman-Fried.

From a tax and accounting perspective, there are some very interesting things. First, it's evident they had terrible records. For any small business, meticulous record keeping is critical to show your expenses correctly when you're ever audited.

The reason for this is that illegal gains are still considered taxable, and in this case, Fried was allegedly taking money from his company and falsely reporting it as loans. He failed to provide any proper documentation or payment plan, and the lack of proper accounting may add to his infringement.

Along with other charges against the former CEO and founder of FTX, he will most likely be charged with purporting tax fraud related to income that he failed to report.

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Jonathan Donenfeld is a Certified Public Accountant (CPA) and Master of Science in Accounting (MSA) with more than a decade of experience in tax, accounting, and finance. After receiving his undergraduate degree from New York University and his Master's Degree from Baruch College, he held positions at leading accounting and consulting firms, most recently in the Private Client Tax Group at FTI Consulting Inc. providing tax and business advisory services to private companies and high net worth individuals. He also worked in the tax department of Rothstein Kass (now KPMG).

Inspired to pursue his dream of starting his own business, Jonathan founded JLD Tax to help other small businesses in Jersey City and Hudson County. He also prepares tax returns for individuals and takes a special interest in Tax Resolution cases, helping people successfully navigate their IRS issues.

Let us help you solve your IRS problem with ease. Request a free consultation at 201-479-2572 or visit https://fal.cn/3vqIv.

#FTX #TaxLaw #TaxExpert