Anthony Sykes & Company

         When it comes to filing a Tax Return in the state of California, there will be a major change in how Taxpayers will interact with the Franchise Tax Board ( FTB ). In the past, if the FTB wanted to disqualify a Taxpayer from claiming Head of Household status, they would send a “ Notice of Proposed Assessment ”. This would allow the Taxpayer 60 days to respond. If they object, and the FTB did not change the proposition, there would be an appeals process that would move to the Office of Tax Appeals ( OTA ). What starts in January 2020 will be very different.           The process described above normally takes months to initiate and try to resolve. In January, the FTB will send out “ Tax Return Change ” notices instead. This adjustment will speed up the time when the FTB contacts Taxpayers. However, if they dispute the change, and the FTB upholds its decision, they will be forced to pay the tax and fi...

          For most people, January 1 is the earliest a Taxpayer will begin to think about filing. While this is understandable, we really should get prepared now to make this process easier in 2020. These are simple steps that involve organizing tax records and making adjustments or necessary tax payments. It’s not too late to make changes to Withholding amounts.           This is also the time to make time to visit your Qualified Tax Professional . Either in person, or by phone, they can tell you what you will need to bring in order to file your taxes properly. In the event you were looking to change Tax Professionals for 2020, this is the best time to make appointments and test out the market, see who listens to you, and find the Professional who fits your needs. Being proactive now, will save a lot of time and anxiety later.

         As we look toward 2020 and the next tax filing season, each Taxpayer must clearly understand what their filing status is. Having this information will help them know what the Standard Deduction will be, whether they will be eligible for certain tax credits , how much tax they should pay , or even if they are required to file a Federal Tax return . This usually depends on whether they are married on December 31 and that will determine their status. However, there can be exceptions.           Qualifying widow(er) with dependent child. This can be applied if the spouse of a Taxpayer has died within the previous two years and they have a dependent child. There are other conditions that must be considered. Head of household. This can be used by unmarried Taxpayers in certain situations. they must have paid more than half of the cost to maintain a home for themselves and a qualifying person who lived in the ...

         After being silent about virtual currency since 2014, the Internal Revenue Service ( IRS ) has released a ruling, along with a document detailing how this income should be handled. This provides a good amount of clarity and highlights the responsibilities of those who invest in virtual currencies.           In the past, these types of currency were treated as property. This meant that when they were sold at a profit, there would be a tax applied. Going forward, much more detail will be required. For example, virtual currency traders must track their investments in order to prove how much they bought, and they must document transfers between accounts to prove that they are tax-free transactions. This is just part of the IRS plan to enforce tax law on this aspect of finance. Earlier in the year, they sent around 10,000 letters to holders of virtual currencies to warn that they may be subject to penalties...