Anthony Sykes & Company

               As a business owner, taxes are a necessary evil, and they are especially important to keep in mind toward the end of the year. As year-end approaches there are some things you need to plan for, including tax planning for your small business. With year-end tax planning your business can reduce liabilities and increase deductions. With the help of proper organization, a solid business plan, and an experienced accountant, you can avoid a stressful situation by paying unnecessary taxes. Here are three important tasks to conduct as the end of the tax year-end approaches. 1. Start by getting you tax documents organized, which includes both your business expenses and income. If you handle your own accounting for your business, it's prudent to use an accounting software program, which will help you record your income and expenses accurately as well as make it easier to organize your finances. An acc...

                As IRS adds more rules for the regulation of tax preparers the name Enrolled Agent is mentioned more often. You may have asked yourself, What is an Enrolled Agent? I have been an Enrolled Agent for 20 years and I can say that we as a group don't promote ourselves as much as we should. On page two of form 2848 ( Power of Attorney) there are 11 groups that have authority before the IRS of those 11 only 3 have the authority to represent anyone before the IRS: Attorney's Certified Public Accountant and Enrolled Agents.                 Enrolled Agents are the only group who must pass a two day test on taxes given by the Department of Treasury and our license is valid in all fifty states and U.S. Territories. CPA's take a two day test also but it is given by the State they wish to practice accounting in and one half day is...

                                         2013 is going to be a year of several changes in regards to taxes. One having to do with Pension Plans. The IRS has announced that there will be limitations for pension plans and other retirement related items. The reason for the change is due to the increase in the cost of living index. Some of the changes discussed included: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan (TSP) is increased by 500 dollars. The catch up contribution limit for employees aged 50 and over who participate in 401(k), 402(b) and most 457 plans and the Government's TSP remains unchanged. The limit on contributions to your Individual Retirement Account (IRA) rises 500 dollars up from the previous year which is now 5,500. The deduction for taxpayers making contributi...

          As of recently the IRS is trying to reduce the amount of tax returns that get mailed in and ideally would like them all to be Electronically filed. The Electronic Tax Administration Advisory Committee (ETAAC) came up with a report that discusses five groups of recommendations on issues regarding electronic filing. Which includes: Reinforcing standards for security, privacy and fraud prevention Moving forward on e-file of employment tax and information tax returns Creating Internet tools for taxpayers and tax professionals Leveraging tax delivery service channels and Funding modernized E-File and Customer Account Data Engine to completion        These topics are to show why paperless filing should be the preferred and most convenient method of filing tax and information returns. In 2011 alone there was 80 percent of individual tax returns being filed electronically. And the IRS would like to...

                    In these economic times many people are in serious debt and the debt can also include taxes. Everyone knows that bankruptcy can relieve most debt but they may not realize that it may also relieve some federal back taxes. First it must be only income taxes, other taxes will not be eliminated. Second, there is no tax fraud or willful evasion involved. Third you must have filed a tax return to create the debt. If you have not filed your return after a certain number of years IRS will file a substitute tax return and estimate the tax and charge you that amount until you file an actual return. Fourth you have to discharge at least two tax years. The 3 year, 2 year, and 240 Day Rules. The bankruptcy code sets out specific time periods that determine if you can discharge your taxes. These rules can be complicated and often misunderstood so you should consult with someone who is fa...

            The IRS has been looking closer at Dependent deductions since 2005. Being able to claim a dependent on your taxes is tied to a number of tax related benefits. It may benefit the taxpayer because they can claim each dependent as an exemption. They may also be able to qualify for a child tax credit, depending if they meet the guidelines.              To help figure out if you have a qualifying dependent there are a set of rules you should go by. the following will be considered as a qualified dependent: 1. The person must be your child, stepchild, adopted child, foster child, brother, sister or a descendant of one of these. 2. The person must reside in the same residence with the taxpayer for more than half the year. 3. Age is also a factor. the qualifying dependent has to be: Under the age of 19 at the end of the year Under the age of 24 and be a full time student or at least 5 months out of the year....

            The IRS wants newlyweds to follow some of these tips (which ever one applies to you) that will most likely help you out when tax season rolls around. 1. Notify the Social Security Administration about a name change- you must report to the Social Security Administration when you change your name, so your name and social security number will match when you file a return. The best way to go about it is filing a SS-5 application form for a new social security card or you may also go to the SSA website. 2. Notify the IRS if you move-sometimes when you get married you may move to a different residence. In order for the IRS to get an accurate address of your new residence you can download form 8822 and send it to the IRS. 3. Notify the U.S. Postal Service- when you move the best way to accurately change your address is by notifying your local post office. They can forward any mail back to you including any correspondence and refunds from the IR...

                                            This economy has shown us some tough times over the past few years. Many people have lost their jobs and a lot of companies have gone out of business. Now we are all starting to put the pieces together and there is a lot of people looking for new jobs. I have information the IRS wants you to know about deducting cost related to your job search.           1. In order to qualify for any deduction, your expenses must be spent on a job search in your current occupation. It does not qualify while incurring for a job in a new occupation.           2. You can deduct agency fees while you're looking for a job in your present occupation. However, ...

      In the past some companies have misclassified an employee as an independent contractor and although there is no bright-line test as to whether a worker is an employee or an independent contractor. The IRS is in the works to change that.          Many companies in the past have found that treating a worker as an independent contractor was more beneficial because they avoided paying taxes and did not have to offer benefits such as medical, sick pay, vacation pay and workers compensation. In some cases a lot of employers also paid these independent contractors cash to avoid withholding of taxes, or avoid immigration status.    Now in the upcoming year the IRS is wanting to put a stop to companies that treat a worker as an independent contractor rather then an employee. The IRS plans to go directly to source (the employer) and suggest they treat those contractors as employees. In essence this is to help keep tra...