Anthony Sykes & Company

          The Taxpayer Bill of Rights is a fundamental document that details should expect to interact with the Internal Revenue Service ( IRS ). We should all be aware of these rights and the IRS reminds their employees of them as well. The second of these is called The Right to Quality of Service . This refers to prompt, courteous, and professional assistance. All communication with the IRS should be clear and easily understood.           In practical terms, this means that every IRS representative should care about the quality of service that they provide. This applies to the way they listen, how they consider information, and the answer they provide. A supervisor can be requested if you have a problem. The IRS should treat you with courtesy when collecting taxes. This is one reason why aggressive phone calls threatening arrest for not paying taxes are always a scam. In general, the IRS will only contact you during business hours and not at your place of employment.

             The American Rescue Plan ( ARP ) Act of 2021 is expansive and has the potential to touch every aspect of the lives of Taxpayers, as we have mentioned in previous posts. This is something to keep in mind for those who have not filed, have filed an extension, or who may see the need to file an amended Tax Return. For example, the Earned Income Tax Credit ( EITC ) has changed, not just for this year, but for years to come.           As a reflection of the times, there is an increase in the amount of investment income allowed while still qualifying for the EITC . The new amount is $10,000 starting this year. Married, but separated spouses who do not file jointly may attempt to qualify for this credit. They need to be legally separated and not live in the same home. However some changes only apply to this year, like being able to receive half of this credit in advance . For those who have their main home in the United States or Puerto Rico more than half the year, this credi

          The tax deadline has passed, but we are still learning more about how the American Rescue Plan ( APR ) is impacting a variety of tax situations. This is something to keep in mind for those who have not filed, have filed an extension, or may see the need to file an amended Tax Return.           For example, the Child and Dependent Care credit has increased greatly for 2021. This credit would apply to children 13 and younger, or a child of any age or spouse that is unable to care for themselves and lives with the Taxpayer for over half the year. The allowable amount of related expenses that can be claimed has more than doubled. However, these increases are only available for 2021. They are also fully refundable, which means that an eligible person can receive this credit even if they do not owe any federal income tax. Check with your Qualified Tax Professional to see if this may apply to you.

             Taxpayers and Tax Professionals alike have searched for the latest information related to tax compliance this year. That is true of every Tax Season since the law changes each year, sometimes even during the year. However, the need to be informed does not stop after April or May. It is in fact, a right that all Taxpayers have.           At times there are issues with a Taxpayer’s account with the Internal Revenue Service ( IRS ) and adjustments must be made. This cannot be done in secret. The Taxpayer has the right to know what has happened and how they can comply with tax laws. They must be given clear explanations of IRS procedures and decisions. Written notices of why taxes are owed or why certain refund claims are denied will be sent.           Understanding these facts will help to protect all of us from scams and frauds claiming to be from the IRS . Communication is supposed to be clear and detailed, not indistinct and sketchy. These are some of the tenets of “T