Anthony Sykes & Company

         When it comes to collecting tax debt, the IRS has a variety of options to use. Certain ones can only be used when proper criteria have been met. That is the case when it comes to a levy. A levy is the taking of property to make sure a tax debt is paid. This option can only be used if (1) a Tax bill has been sent, (2) the Tax bill has not been paid, and (3) a levy notice has been sent informing the taxpayer of the process that will take place. It must inform them at least 30 days before that happens.         A levy can involve individuals when it comes to the IRS seizing property they hold like their house or car. It can also involve business owners. The IRS has a wide view when it comes to property. It has consistently held that wages and bank accounts are property and can also be levied. This would involve notices being sent to them as well. However, the Tax Cuts and Jobs Act passed last year has made some adjustments in how the IRS can levy property. It is worth

          Cryptocurrencies, such as Bitcoin, have had special IRS rules made for them over the past 4 years. They basically state that these types of digital holdings are not viewed as currency, they are property . That means in the event there is ever an exchange, that occasion will be taxable .           However, there is another pressing issue that comes up because of the decentralized nature of digital currencies. Are virtual currencies subject to foreign financial reporting requirements? They very well might be. This is an area where a Taxpayer needs to do their own research. They must find out if their currency is on an exchange or a virtual wallet. Taxpayers who choose to venture into this field must know what they have signed up for, and what responsibilities they have. If they don’t, then the IRS might surprise them with some sobering facts.

       As the year continues there are more drafts of tax forms being released by the IRS. As a result of the Tax Cuts and Jobs Act, the most extensive change to the tax code in 30 years, many forms are being redesigned and will have a new look for the 2018 filing season. At this point there is nothing official, but these previews give us an idea of what practical impact tax reform will bring.           At first glance, it looks like Form W-4 will be simpler. It reflects the focus that has now been placed on tax credits and different kinds of financial contributions. Many are difficult to forecast at the beginning of the year. Many Taxpayers are unsure of what tax credits they may qualify for. At this point, the only way to give accurate responses in these areas is to fill out up to 11 separate worksheets.           These along with other massive changes will more than likely change some responsibilities between Taxpayers and Employers. As it stands now, Employers will nee

When it comes to collecting tax debt, the IRS has a variety of options to use. Certain ones can only be used when proper criteria have been met. That is the case when it comes to a lien. A lien is the Federal government’s claim against the property of a taxpayer who does not pay their tax debt. This is not a levy , where the property is seized by the IRS. In this case, the government is saying it has the right above anyone else, to the value of the property in order pay the tax debt. This declaration will apply to any current of future personal assets. This would apply to a business as well.         A lien is only issued if a tax debt is noted and bill sent asking for payment. If this notice is ignored, then a lien can be issued. This can be a devastating situation, but there are options. Visit our site here to see how we can help you.

One of the main promises of the Tax Cuts and Jobs Act passed last year, was that filing tax would become simple. At the end of June 2018, a preview of a simplified form was released. We are all familiar with the Form 1040 and were in anticipation of what it might look like moving forward.           At a glance, it is clearly much smaller than it used to be. It seems to resemble the postcard comparison that was repeatedly made. However, as you look at the required information, it asks for the SSN of the Taxpayer. This is not a surprise, but it will require an envelope to mail and protect all your sensitive information. This draft is a combination of 3 Form 1040’s, but it also refers to several other Schedules for information. At this point, they have not simplified. At this point, some Taxpayers may need to fill out more to have what is needed for the new Form 1040 .           With all that said, this is just a preview. We can expect many more changes in the months ahea