Anthony Sykes & Company

          Here are some more points to keep in mind when choosing a tax preparer. The person chosen will be representing you to the IRS, there is nothing wrong with making sure that you can be confident in his or her abilities.           Read and ask questions about the Tax Return before signing. The Taxpayer is responsible for what is on the Return, no matter what it says. Be sure you agree with what it contains, and have any questions answered before signing it. Also make sure your preparer will be available after the filing date in case questions come up, or to represent you.           Ask if they have a Preparer Tax Identification Number. A valid PTIN is needed for those who are paid to prepare Tax Returns. Along those lines, asking if they are a part of any professional organizations or go to continuing education classes is a good idea. Th...

Tax season has officially arrived! With that in mind, there have been moves to allow the IRS to license Professional Tax Preparers. In December 2015, the Tax Preparer Competency Act was introduced to the US House of Representatives. The bill, as it was written, would require Tax Professionals to ( 1 ) pass a competency exam, ( 2 ) attend continual education classes every year, and ( 3 ) pass a background check. Those who meet these standards would be listed in a public database. This bill is the most recent attempt to reach this goal.           A few years ago, the IRS tried to do this on their own and were challenged in court. The result of that activity was the Preparer Tax Identification Number ( PTIN ) and the voluntary system now in place. The basic motive for trying to create these standards is to protect Taxpayers, who are sharing their most sensitive personal information in this process. It would seem to mak...

This is the continuation of our series focusing on good qualities to look for in a tax preparer. Again, it's better to make this choice sooner, rather than later. Both sides can discuss what is needed in a relaxed atmosphere, allowing Taxpayers to make an important decision with all the facts clearly set in front of them. Here is what they should be looking for. Have a clear understanding of the service fees. Make sure to avoid preparers who will base their fee on a percentage of the refund. Be cautious of those who claim to be able to get bigger returns than anyone else. All fees and costs should be understood before making a choice. Any and all Tax Refunds belong to the Taxpayer, and should be sent directly to them, never to the preparer. Never sign a Tax Return that is blank. Remember that no matter who prepares the return, the taxpayer is responsible for what it contains. So if one were to sign a return that has no information yet, they would be responsible for ...

          Business owners have opportunities to lighten their Tax load. This is especially true of small business owners. While it requires good record keeping throughout the year, these deductions can be well worth the effort. Here are 2 examples.           Utilities. On top of being able to deduct rent payments for a business, expenses like telephone, water, and electricity are also able to be used as tax deductions. This is a great way to save money and is an option for those who work from home. Careful records must be kept to separate business use from personal use in the case of a home business.           Vehicle . There are 2 groups of expenses that can be helpful deductions that are available to be used. However they cannot be used together, it is one or the other , not both. Car mileage can be deducted at the standard rate (54 cent...

The best time to choose a professional to prepare your taxes is as early as possible . This way, a taxpayer can spend time with preparers and consider potential options. Making the choice at that time will allow for wise tax planning to begin. Choosing a preparer later in tax season (the closer it gets to mid-April) may be difficult, because that is their busiest time. No matter when the choice is made there are a number of factors to keep in mind, this post will be the first in a series that will highlight a few. Choose a preparer who is honest. This is an essential quality. Taxpayers are sharing their most vital personal information with this person, they need to be someone who can be trusted. Especially since the taxpayer is always responsible for what is on the Return, no matter who prepared it. Choose a preparer who asks for records. A qualified professional will ask to see financial records and receipts in order to prepare a ...

All income is taxable. This includes gambling in its many different forms. No matter if its wagers in a card game, winnings from a slot machine, or results from increasingly popular fantasy sports leagues, gambling winnings will be taxed. Here are some guidelines to help in this area of finance. All gambling winnings must be reported. The casino or business that is paying sends in their own copy of the necessary form, so the IRS will be expecting the taxpayer to do the same and declare it on their Tax Return. The taxpayer will then have the ability to deduct any gambling losses for the year too, up to the amount of income that gambling provided. This would be possible if the taxpayer kept receipts, statements, or logs that detailed wins and losses. It would seem to be a wise investment to have a tax preparer to make sure that these prizes are reported properly, and avoid losing any to penalties or fines. What do you think?

Everyone wants their tax refund as soon as possible. Unfortunately this can lead unsuspecting Taxpayers to be taken advantage of. These cases will lead to some or all of their money being taken, and in some situations, they can even land in jail. Let’s take a closer look at some common pitches that are offered and the potential consequences. The “Instant” Refund. The idea here is to give the Taxpayer access to their refund, before it comes from the IRS. This is actually a short-term loan being provided by the Tax Professional. There are many fees applied to loans like this, which means that they have a very high interest rate. So hundreds of dollars from your actual refund will pay for this loan. Make sure to read all the details in the small print. The “zero wages” tax bill. The idea here is to send false information to the IRS hoping that it will be accepted or missed entirely. Some might suggest moving money to an offshore bank account. Others may urge a Taxpayer to mov...

        Many dream of one day finding treasure. For a couple in Northern California, that dream turned into a reality when they found over 1,000 gold coins from the 1800’s in their backyard. They literally came across buried treasure! This was an amazing situation when it occurred a few years ago. Let’s take a closer look at how this would make a surprising financial impact.           The gold in the coins was valued at $2 Million. However, since the coins were in good condition, which is rare considering their age, the whole collection was valued at $10 Million! At this point reality takes over from fantasy. Federal law states that taxes on lost or abandoned property must be paid as income in the first year a person takes possession of it. No one came forward to challenge their claim. The U.S. Mint investigated and determined the collection was not stolen from them. This couple would have to pay t...

Everyone wants to have a good idea on how to plan for the future. That is especially true in the area of finance, and taxes play a huge role in that planning. Long before most people start to file Tax Returns, the next year’s Tax Brackets are released. So 2017’s Tax Brackets are now available. They would apply to Tax Returns to be filed in 2018.           Tax Brackets are only a guide, a starting point, based on what a person’s Taxable Income might be. They really only give part of the picture of what the Tax Return will actually look like. This information, along with advice from a qualified Tax Professional, will help make the Tax Process much easier to deal with.